DBS Bank: Raises target price of HUANENG POWER (00902) to 5.8 Hong Kong dollars. Listed as top pick in the industry. Maintains "buy" rating.

DBS released a research report saying that HUANENG POWER (00902) is expected to benefit mainly from lower fuel costs, with profits expected to grow by over 30% this year. The current valuation is quite attractive, with a yield of over 5% and strong growth prospects, therefore the "buy" rating is maintained. The target price is raised from 5.2 Hong Kong dollars to 5.8 Hong Kong dollars, making it the top pick in the industry. The bank expects HUANENG POWER to benefit from lower fuel costs, with net profits for the first half of this year expected to increase by around 16%. Additionally, the company plans to add about 14GW of clean energy capacity this year. However, due to weak demand, electricity generation in the first half of the year decreased by 2.4%. As a result, the bank has revised its forecast for the company's full-year electricity generation growth down by 2.6 percentage points to 3.4%.