According to HSBC Research's report, CGN POWER (01816.HK) had power production last year that met expectations due to higher utilization and new capacity, which can continue to support growth. However, the repricing of power contracts was below expectations, with long-term power purchase agreements in Guangdong recording a mid-teens percentage decline. The firm stated that the company's earnings risks remain, lowering the Target Price from 3.1 to 3 yuan and maintaining a "Hold" rating.

The firm has lowered its earnings forecast for the company for 2025 to 2026 by 1%, implying that before considering asset injection, the expected earnings will decline by 2% year-on-year to an increase of 1%, and the downside risks regarding charges still exist. (vc/u)

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