Morgan Stanley's research report indicates that the short-term electricity price risk of CGN Power (01816.HK) is overestimated by the market, believing that even if the overall market electricity price falls, the group still has a high level of defensiveness. The bank believes that with more new projects of the group coming to fruition, coupled with the profitability improvement of existing power plants, the group's ROE still has the potential to increase.

Morgan Stanley stated that as concerns about electricity prices begin to ease, CGN Power may undergo another round of reassessment amidst the improvement in profitability. The bank has raised the group's H share target price from 3.1 yuan to 3.69 yuan, with a "shareholding" rating.