DBS Bank: Downgrades China Resources Power target price to HK$22.6 and lowers full-year electricity generation forecast.

DBS released a research report stating that China Resources Power's electricity generation in the first half of the year increased by 3.6%, lower than expected. The bank has lowered its forecast for full-year electricity generation growth by 8.4 percentage points, projecting a year-on-year increase of 4% to 9% in electricity generation for 2025 and 2026. Thanks to fuel cost savings, profits in the first half of 2025 are expected to increase by 6%. Based on attractive yield and valuation, the bank maintains a "buy" rating on China Resources Power, with a target price lowered from HK$24 to HK$22.6. Profit forecasts for 2025 and 2026 have been revised down by 4%, with expected profit growth of 7% and 13% respectively.