HK Stock Market Move | CGN Power (01816) fell over 4% in the afternoon, Citigroup stated that China does not see power shortage, and electricity prices in Guangdong Province may be lower than expected.

CGN POWER (01816) fell by more than 4% in the afternoon, dropping 4.49% to HK$2.98 by the time of publication, with a turnover of HK$2.46 billion. Citigroup issued a research report stating that although global stock markets are becoming more optimistic about investments in nuclear power, they are still maintaining a "sell" rating on CGN POWER due to the lack of power shortage in China. The bank pointed out that CGN Power's electricity prices in Guangdong Province (contributing 70-80% of its total profit) may be lower than expected due to increased competition, and the company announced that it will bear more sales and distribution costs in local electricity sales. It is expected that the unit uranium fuel costs will increase annually by 2026, although the increase may be limited as only 25% of uranium fuel needs to be replaced this year. Zhongjin Securities stated that CGN POWER's total power generation increased by 2% to 247 billion kilowatt-hours last year, while the total power sent to the grid increased by 2.36% to 232.6 billion kilowatt-hours. The report mentioned that the electricity prices in Guangdong Province have landed as expected, and profits from nuclear power in the province are seeing a bottoming out and recovery. Zhongjin Securities stated that considering the delivery of the Huizhou nuclear power assets, Huizhou Units 1-2 are expected to contribute incremental production this year, and raised the group's profit forecast for this year by 2.5% to 10.3 billion yuan, introducing a profit of 11.5 billion yuan in 2027.