Citigroup has issued a research report forecasting a decline in earnings per share and dividends for Huaneng Power (00902) from 2026 to 2027, which would reduce its appeal as an income stock. The firm reaffirmed its "sell" rating on Huaneng, with a target price of HK$4.6.
In the first quarter, Huaneng's net profit fell by 9.8% year-on-year to RMB 4.483 billion. Contributions from wind and solar power plants decreased, with pre-tax profits from wind power dropping 19.7% to RMB 1.808 billion and solar power declining 58.7% to RMB 233 million. These declines were not offset by a 9% increase in profits from coal-fired power plants, which reached RMB 4.341 billion. During the period, electricity sales in China decreased by 4.8% year-on-year, while the average electricity price fell by 5.6% to RMB 460.73 per megawatt-hour.
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