Daiwa released a research report stating that it has given China Electric Holdings Limited (00002.HK) a "hold" rating with a target price of 69 yuan. The bank stated that among Hong Kong utility stocks, it is most bullish on Cheung Kong Infrastructure Holdings Limited (01038.HK), followed by Power Assets Holdings Limited (00006.HK) and Towngas China Company Limited (00003.HK), and is most bearish on China Electric Holdings Limited.

Daiwa noted that the market believes China Electric Holdings Limited has the potential to increase its annual dividend in 2024, as the Australian market recovers, which could be a positive catalyst for the company's stock price performance this year. However, the bank advises investors to pay attention to the 2025 fiscal year guidance provided by EnergyAustralia, which expects a year-on-year decrease in energy market EBITDA of 15% to 34%, and the guidance provided by AGL Energy, which expects a year-on-year decrease in basic EBITDA of 2% to 16% and a decrease in basic net profit of 10% to 35%. The bank believes that Australian energy companies have underperformed in the market, and there is little chance of achieving counter-cyclical growth between 2024 and 2026. Therefore, some analysts' expectations for an improvement in EnergyAustralia's profit are not reasonable.

The bank pointed out that based on China Electric Holdings Limited's current yield, cash flow, and debt situation, it is particularly bearish on the stock.