Morgan Stanley maintains a "overweight" rating on CGN POWER (01816) with a target price reduced to HK$3.19.

Morgan Stanley released a research report stating that it has lowered the target price of CGN POWER (01816) by 13.6%, from 3.69 Hong Kong dollars to 3.19 Hong Kong dollars, while maintaining a "hold" rating. The final electricity price in the Guangdong market in 2025 is determined to be approximately 0.35 Chinese yuan/kilowatt-hour, lower than their previous forecast. The bank stated that it will decrease its earnings forecasts for CGN Power's 2025 and 2026 earnings per share by 14% and 12% respectively, to reflect the impact on earnings. Due to lower than expected trading volumes, the bank has also lowered its 2024 electricity price forecast by 2%. Earlier this year, CGN Power locked in 32 billion kilowatt-hours of electricity at the market price of approximately 0.35 Chinese yuan, therefore Morgan Stanley believes that the impact of monthly transactions on the remaining time this year will be limited.