Citigroup: Upgrades China Resources Power's target price to HK$3.3, maintains "Neutral" rating.

Citigroup's report stated that considering the lower production costs of solar glass and tax expenditures, it has raised Xinyi Solar's profit forecast for 2025 by 19%, and for 2026 to 2027 by 3% to 8%. Due to changes in profit and a decrease in weighted average cost of capital, the target price has been raised from HKD 2.3 to HKD 3.3, maintaining a "neutral" rating. The bank noted that due to the decline in solar glass prices, Xinyi Solar's net profit in the first half of the year fell by 58.8% to 746 million yuan. With weak demand, the average market price of 2.0mm solar glass dropped from 12.8 yuan per square meter in the first half of the year to 10.5 yuan in July, a decrease of 18%. The bank expects further declines in profit in the second half of the year, and is monitoring potential anti-inner-circle actions in the Chinese solar industry.