According to the report released by Daiwa, power assets (00006) achieved a net profit of 3 billion yuan in the first half of this year, a year-on-year increase of 2%, which meets market expectations. The medium-term dividend is HKD 0.78 per share, unchanged from the same period last year. The bank still maintains an optimistic attitude towards it, pointing out the attractive relative yield gap, raising the target price from HKD 49 to HKD 60, but downgrading the rating from "buy" to "outperform the market".

The bank stated that investors should also appreciate the strong free cash flow buffer of CKI Holdings (01038) to increase future profits and dividends. However, the potential space for power assets to increase dividends seems limited, as its annual operating funds may only be close to the dividend commitment. The bank has lowered its earnings forecast for power assets from 2024 to 2025 by 1.4% to 1.5% per share.