智通财经网·2025-08-06 09:21Core Viewpoint - Daiwa's report indicates that Huaneng International Power Co., Ltd. (00902) is expected to remain one of the most stable profit growth companies in the independent power sector, despite limited opportunities for further expansion of the dark spread in Q3. The target price has been raised from HKD 5 to HKD 5.8, maintaining an "outperform" rating [1] Group 1: Financial Performance - The second quarter electricity prices remained unchanged, but there is increasing downward pressure [1] - Management believes that the relatively strong coal-fired electricity prices are due to an active "volume-price coordination" strategy, increasing generation during high price periods and limiting output when prices soften [1] - Despite rapid capacity growth and increased market participation, renewable energy prices continue to face downward pressure, with wind and solar prices dropping by RMB 18 and RMB 15 per megawatt-hour respectively on a quarterly basis [1] Group 2: Market Outlook - Management anticipates that the overall electricity price environment will remain under pressure in the second half of the year, particularly due to accelerated spot market reforms and renewable energy supply growth exceeding demand [1] - Nevertheless, the firm believes that the dark spread will still expand in the second half of the year [1]