HK Stock Market Move | CGN POWER (01816) fell more than 3% during trading hours, company profit risk still exists, target price recently lowered by multiple institutions.

CGN POWER (01816) fell more than 3% in intraday trading, hitting a new low of 2.43 Hong Kong dollars since May last year, with the stock price falling by more than 10% this month. As of the time of writing, it dropped by 2.79% to 2.44 Hong Kong dollars, with a trading volume of 96.3124 million Hong Kong dollars. On the news front, the Guangdong province previously announced the long-term electricity price for 2025, with an average price of 391.9 RMB per megawatt-hour, a year-on-year decrease of 15.9%, and a discount of 13.5% compared to the local benchmark electricity price. Morgan Stanley pointed out that following the announcement of a comprehensive reduction in electricity prices in Jiangsu province next year, Guangdong province also released the results of electricity market transactions for 2025, with an average price per megawatt-hour decreasing by 7.4 RMB, a year-on-year decrease of 16%, slightly lower than market expectations, which is expected to make the profitability of coal-fired power companies more fragile. A research report by HSBC indicated that the company's profit risk still exists, lowering the target price from 3.1 Hong Kong dollars to 3 Hong Kong dollars, maintaining a "hold" rating. The bank lowered its profit forecast for the company for 2025 to 2026 by 1%, implying a year-on-year decrease of 2% to an increase of 1% before considering asset injection, while downward risks regarding fees still persist. Morgan Stanley lowered the target price for CGN POWER by 13.6%, from 3.69 Hong Kong dollars to 3.19 Hong Kong dollars, maintaining a "buy" rating.