Based on CGN's potential to double its installed capacity in the next ten years, the bank raised the target price of CGN electricity to HK$3.2, reaffirming the “buy” rating.
The Zhitong Finance App learned that Bank of China International released a research report saying that CGN Power (01816) has risen 29% since the beginning of the year, and the dividend rate for H shares has narrowed to 4.4%. Profit certainty does not seem to be sufficient to explain its valuation's premium compared to other Hong Kong electricity peers. Based on CGN's potential to double its installed capacity in the next ten years, the bank raised the target price of CGN electricity to HK$3.2, reaffirming the “buy” rating.