Citi Raises CGN Power to Buy, Boosts Target Price by 55% to HK$3.80

Deep News10-20

Citi has released a research report upgrading its rating on CGN Power (01816) from Sell to Buy, while raising the target price from HK$2.45 to HK$3.80, an increase of 55%.

The upgrade is primarily driven by the company's expected benefit from electricity price increases in Guangdong Province in early 2027.

The bank has raised its net profit forecasts for CGN Power for 2026 to 2028 by 12% to 17%, based on the key assumption that the average market-based electricity price in Guangdong Province will rise 14% year-on-year in 2027 to 372 RMB/MWh, while also factoring in higher unit costs for nuclear fuel.

The bank's net profit forecasts for the company in 2027 and 2028 are 2% above market consensus.

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