Citigroup: Raises China Resources Power's target price to HK$1.3, maintains "Neutral" rating.

Citibank released a research report stating that China Resources Power's net profit for the first half of the year increased by 23.4% year-on-year to 450 million RMB, mainly due to the growth of solar power generation capacity, reduced financial and tax expenses. These factors offset the higher grid restrictions and more market discount-driven sales impact. The bank stated that China Resources Power's effective debt costs decreased from 3.5% at the end of 2024 and 4.7% a year ago to 2.88% in the first half of this year, leading to a 2% to 7% upward revision of the company's net profit forecast for 2025 to 2027 in response to the decline in financing costs. The target price was raised from 0.86 HKD to 1.3 HKD, maintaining a "Neutral" rating.