智通财经网·2025-07-31 05:52Core Viewpoint - Citigroup has raised the target price for Huaneng International Power Co., Ltd. by 14.8% from HKD 5.4 to HKD 6.2 and increased the target price for its A-shares by 14% to RMB 8.8, maintaining a "Buy" rating [1] Group 1: Financial Performance - Huaneng International's earnings for the first half of 2025 and the second quarter are better than initial estimates, primarily benefiting from lower-than-expected coal costs [1] - The company is expected to see a further decline in spot coal prices over the next 12-18 months due to decreased demand, which is sufficient to offset potential gains from supply-side reforms in the coal industry [1] Group 2: Cash Flow and Dividends - The increase in free cash flow allows the company to raise its dividend payout ratio [1] - With the decline in coal costs, the profit forecast for the company from 2025 to 2027 is projected to grow by 19-23% [1] - The H-shares offer an attractive dividend yield of 7.8%, while the A-shares provide a yield of 5.1% [1]