The Zhitong Finance App learned that Huadian International (01071) is now up more than 3%. As of press release, it has risen 2.99% to HK$4.14, with a turnover of HK$54.02 million.

According to the news, Huadian International recently announced that the company recently received a notice from the controlling shareholder Huadian Group to plan asset restructuring matters relating to the company. Huadian International plans to purchase majority shares of the eight entities directly or indirectly held by Huadian Group and raise supporting capital by issuing shares and paying cash.

Dongwu Securities pointed out that Huadian Group plans to inject large-scale gas, electricity, and coal power assets into listed companies, concentrating the injected assets in South China, Jiangsu, and Shanghai. This asset injection is an important step for Huadian Group to support listed companies. We expect that this injection of thermal power assets in coastal cities will further enrich the company's assets, profits, and EPS, and the integration of the Group's assets is expected to accelerate further in the future.

Huayuan Securities, on the other hand, indicated that the total installed capacity of the purchased assets was about 18 GW. They are all thermal power and mainly gas generators. Shandong is still the most important business area for the company's coal and electricity, accounting for 43.65% of installed capacity. If this asset injection is completed, the company will account for more than 20% of its fleet in Jiangsu, making it the company's second-largest business area, which is conducive to expanding the company's business layout and making the distribution more uniform.