According to the Zhitong Finance APP, Huadian Power International Corporation (01071) now rises more than 3%, at the time of publication, up 2.99%, at HKD 4.14 with a turnover of HKD 54.02 million.

On the news side, Huadian Power International Corporation recently announced that it has received a notice from its controlling shareholder, China Huadian Corporation, planning asset restructuring related to the company. Huadian Power International Corporation intends to purchase the controlling stake of eight entities directly or indirectly held by China Huadian Corporation by issuing shares and making cash payments, and raising matching funds.

Soochow Securities pointed out that China Huadian Corporation plans to inject a large amount of gas-fired and coal-fired assets into the listed company, with the injected assets concentrated in the south, Jiangsu, and Shanghai regions. This asset injection is an important measure of support for the listed company by China Huadian Corporation. We believe that the injection of thermal power assets in the coastal cities will further enrich the company's assets, profits, and EPS. The future integration of group assets is expected to accelerate further.

Huayuan Securities pointed out that the total installed capacity of the acquired assets is about 18GW, all of which are coal-fired and mainly based on gas-fired generators. Shandong is still the company's main operating area for coal-fired power, with an installed capacity ratio of 43.65%. If this asset injection is completed, the proportion of the company's units in Jiangsu will exceed 20%, making it the company's second-largest operating area, which is conducive to expanding the company's business map and more balanced distribution.