On August 5th, GeLongHui | CITIC Securities released a research report stating that Huaneng International Power's Q2 performance declined, with revenue and net income down 12.05% and 29.58% YoY, respectively. In addition, the group's coal machinery business profit in Q2 was 1.155 billion yuan and the profit per kilowatt-hour conversion was 0.015 yuan, which decreased significantly compared to the first quarter. The main reason for the significant decline in coal-fired power performance in Q2 was due to the increase in unit depreciation caused by the decrease in coal-fired power generation, the increase in maintenance after the end of the heating season, the decrease in power generation efficiency, and the limited decrease in unit coal price in Q2. Considering the relatively high probability of continuous water supply during the flood season, it is expected that the company's thermal power generation will continue to be squeezed in the third quarter, and the impact of the increase in unit depreciation may continue. CITIC Securities maintained Huaneng's net profit forecast for 2024-2026 at 12 billion, 15.8 billion, and 17.1 billion yuan, respectively, and set a target price of HKD 5.2, continuing to recommend a "buy" rating.