Citigroup: Uplifts the target price of China Power International Development Limited (01071.HK) to HK$5.25, maintains "buy" rating.

According to the Zhitong Finance APP, Citigroup issued a research report stating that China Datang Corporation International Power Generation Co., Ltd. (01071.HK) has achieved a net profit of 1.93 billion RMB in the first quarter of this year, an increase of 3.7% year-on-year. Excluding a one-time factor of 388 million RMB disposal income from the first quarter of last year, the regular net profit for this quarter increased by 17% year-on-year. This increase is believed to be driven by a 9.7% year-on-year decrease in standard coal costs, helping to offset the impact of the reduction in on-grid electricity prices and the decrease in net power generation volume. The company's profit performance slightly exceeded market expectations. Citigroup has raised its net profit forecast for China Datang International in 2025 and 2026 by 3% and 10% respectively to reflect the decline in coal costs, while raising the target price by 14% to 5.25 Hong Kong dollars, maintaining a "buy" rating.