Morgan Stanley: lowers profit forecast for CHINA RES POWER (00836) target price slightly increased to 23.8 Hong Kong dollars.

Morgan Stanley released a research report saying that it has adjusted the earnings forecast per share for CHINA RES POWER (00836) in 2026 and 2027 from 3.49 and 3.58 Hong Kong dollars to 2.98 and 3.08 Hong Kong dollars respectively, to reflect the lower electricity prices in those years. Valuation has been extended to 2026, with a target price of 23.8 Hong Kong dollars, up from 23.7 Hong Kong dollars, calculated at a P/E ratio of 8 times. The bank maintains a "hold" rating, as the company's utilization hours for coal and wind power projects are better than its peers, reflecting higher asset quality. Although the company may face greater pressure from electricity price cuts compared to its peers in 2025, its dividend yield is still more secure, making it attractive to investors.