Gelonghui, June 20, 丨 Da Mo published a report. It is expected that with the improvement of Australian business, CLP (0002.HK) will have an opportunity to increase dividends this year. Its profit forecasts for this year and next two years are 17% and 22% higher than market expectations, respectively. The bank indicated that the Group's current valuation was attractive. The rating was upgraded from “synchronizing with the market” to “increasing holdings”, and the target price was raised from HK$68 to HK$70. According to the bank, CLP Australia lost huge losses last year due to rising fuel costs, electricity contracts sold in the long term at low electricity prices, and supply disruptions. However, the bank sees that the power generation capacity of power plants is increasing, fuel costs are down 51% from the peak period in September last year, and electricity contracts continue to be extended. As a result, CLP's Australian business revenue is expected to improve significantly. The current bias is expected to occur in the second half of this year, and will continue to increase 40% year over year next year. Furthermore, the government plans to conduct a mid-term review of the “Control Plan Agreement” with the two power companies this year. The comments made by the government during the discussions on potential changes in the rate of return raised investors' concerns and caused CLP's performance to fall short of its peers. However, the bank notes that any change in the agreement requires the consent of both parties, and the bank believes that in the end, there were no substantial changes. The stock is currently reported at HK$60.85, with a total market value of HK$153.7 billion.