HK Stock Market Move | CGN POWER (01816) rises over 4%; net profit attributable to shareholders for the first three quarters up 12.75% year on year; the company will benefit from potential electricity price increases in Guangdong.

CGN POWER (01816) rose over 4%, up 4.55% as of press time to HK$3.45, with turnover of HK$126 million. On the news front, on October 28, CGN POWER announced its results for the first three quarters of 2026, with operating revenue of approximately RMB51.098 billion, up 3.98% year on year; net profit attributable to shareholders of the listed company of approximately RMB9.603 billion, up 12.75% year on year. From January to September 2026, the total on-grid electricity of the nuclear power units operated and managed by the company was approximately 176.749 billion kWh, up 2.65% from the same period last year; the on-grid electricity of the company's subsidiaries was approximately 141.491 billion kWh, up 4.23% from the same period last year. The announcement said the main reason for the profit growth was that Huizhou Units 1 and 2 and Cangnan Unit 1 were put into commercial operation in 2026. Citi recently issued a research report stating that it is bullish on CGN POWER within the independent power producer sector, and expects the company's profit growth in 2027 to be driven by potential electricity price increases in Guangdong. Citi raised CGN POWER's net profit forecasts for 2026 to 2028 by 12% to 17%, mainly assuming that its average market-based electricity price in Guangdong province in 2027 will rise 14% year on year to RMB372/MWh, while also factoring in higher unit costs of nuclear fuel. The bank's net profit forecasts for the company for 2027 to 2028 are 2% above market consensus.