Ge Long Hui·2025-09-05 03:54Core Viewpoint - The report from Bank of America indicates that the performance of Chinese power stocks in the first half of the year generally met expectations, with concerns about electricity price reductions expected to emerge from September to December [1] Group 1: Company Ratings and Target Prices - Huaneng International Power is rated "Buy" with a target price raised from HKD 6 to HKD 6.2 due to its performance [1] - China Resources Power's rating is "Neutral," with the target price decreased from HKD 20.2 to HKD 19.8, impacted by declining revenue from coal and renewable energy [1] - Huadian International Power's rating is downgraded from "Buy" to "Neutral," with the target price lowered from HKD 4.9 to HKD 4.6 due to concerns over falling electricity prices and seasonal weakness in the industry [1] Group 2: Market Conditions and Performance - The industry is facing seasonal weakness, exacerbated by a potential decline in supply-demand dynamics and lower wind/solar electricity prices [1] - Stable coal prices and a reduction in internal competition may provide some support to the sector [1] Group 3: Other Company Insights - China Everbright Environment is rated "Buy" with a target price of HKD 5.3, reporting a 23% year-on-year increase in pre-tax profit and doubling of free cash flow [1] - Longyuan Power is rated "Underperform," with a target price of HKD 6, as its profit decline in the first half aligns with expectations, with ongoing monitoring of subsidy collection and upcoming provincial electricity tenders [1]