Citigroup: Huaneng Power's earnings per share and dividend will decline in the next two years, rated as "sell"

Citibank released a research report stating that it is expected that HUANENG POWER (00902) will see a decline in earnings per share and dividends in 2026 to 2027, which will reduce its attractiveness as an income stock. The bank maintains a "sell" rating on Huaneng, with a target price of 4.6 Hong Kong dollars. Huaneng's first-quarter net profit fell by 9.8% year-on-year to 4.483 billion yuan, with contributions decreasing from wind power and CECEP Solar Energy power plants. Wind power's pre-tax profit fell by 19.7% year-on-year to 1.808 billion yuan, while CECEP Solar Energy fell by 58.7% to 233 million yuan, which was not offset by a 9% increase in profit from coal-fired power plants to 4.341 billion yuan. During the period, electricity sales in China fell by 4.8% year-on-year, with the average electricity price falling by 5.6% to 460.73 yuan per megawatt-hour.