Citigroup cuts its price target on CGN Power (01816.HK) to HK$2.45 from HK$3.20
and kept a Sell rating. It said 1H grid-delivered generation fell 3.3% YoY to
109.6 million MWh and average unit utilization hours fell 6.1% YoY to 3,554
hours, while market-priced sales share rose 9.8pp to 65.9%. Citigroup forecasts
Q2 net profit down 7.8% YoY to RMB2.7bn, chiefly due to the higher share of
market-priced sales, and said Guangdong’s Q2 spot-price rise should have limited
impact because over 95% of market-priced volume is sold under long-term
contracts. Lower utilization leads Citigroup to cut 2026–28 net profit forecasts
by 3–6%. It flagged a 2026 forecast dividend yield of 3.8% and said the current
share price It is not attractive.
