Citigroup released a research report, reaffirming a 'buy' rating on China Res Power and maintaining its preferred position in the coal-fired independent power plant (IPP), noting its ideal performance in the first half of the year, with a year-on-year increase in net income of nearly 39%, mainly due to the decrease in fuel costs, which has increased the profitability of its thermal power business. Res Power stated that it plans to add 10 gigawatts of wind power and photovoltaic projects to the grid capacity this year, with a large number of projects expected to be connected to the grid in the second half of the year. Citigroup predicts that Res Power's renewable energy capacity will grow by 45.4% for the whole year, contributing to a year-on-year increase in net income of 14% next year. The management has indicated that the net debt-to-equity ratio will be moderately increased to 168% this year, and will wait for the right time to spin off its new energy business and list it on the A-share market, which will bring additional positive catalysts.

Taking into account the cost reduction, the bank has raised its net income forecast for Res Power for 2026 to 7%, and believes that its forecasted dividend return of 5.6% for this year is attractive. The target price has been raised from HKD 26.5 to HKD 27.