Gelonghui, May 9 | Citi published a research report saying that Huadian's net profit increased 77.8% year-on-year to 1,632 billion yuan, driven by lower fuel costs per unit and disposal revenue, offsetting the impact of the reduction in grid electricity prices in the mainland. Excluding disposal proceeds, profit before tax for the first quarter increased 70% year-on-year to $2,401 billion. The sharp increase in profit is expected. The market expects the Group's net profit to rise 75.2% year-on-year to $6.296 billion in 2024. The bank expects that the Group's net profit for this year and next will increase by 16% and 6%, respectively, and that the target price of AH shares will increase by 15%, respectively, to RMB 5.75 and HK$4.5, respectively. The bank believes that the profit recovery brought about by falling coal prices has been basically clear, maintaining the “neutral” rating for H shares, while the “sell and sell” rating for A-shares has been renewed. In the thermal power sector, the bank is more optimistic about Rundian.