"Big Banks" Bank of America raises target price for CHINA POWER to 3.5 yuan, reiterates "Neutral" rating

AASTOCKS
2025.12.18 08:02

Bank of America raised its target price for CHINA POWER (02380.HK) from HKD 3.1 to HKD 3.5 and reiterated a "Neutral" rating. The bank lowered its earnings forecast for the company by an average of 2% for this year through 2027, reflecting lower-than-expected electricity prices, but predicts that this year's earnings will remain stable year-on-year.

The bank stated that they visited the Jiangsu Changshu Power Plant, in which China Power holds a 50% stake. Management expects that the annual long-term electricity price in Jiangsu Province will decrease by 5 to 6 cents per kilowatt-hour next year, mainly due to falling coal prices and rising capacity prices. The power plant plans to reduce the proportion of annual long-term contracts from 76% to 50% and increase spot market trading volume, believing that its location advantage can achieve better prices in the spot market

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