Ge Long Hui·2025-09-30 03:51Core Viewpoint - Citigroup has initiated a 30-day downward catalyst observation for Huaneng International Power, expecting a 18.4% quarter-on-quarter decline in net profit for Q3 to 3.5 billion yuan, primarily due to impairment losses [1] Financial Performance - The anticipated decline in net profit is attributed to impairment losses, which are non-cash items [1] - Fuel cost reductions are expected to offset a 3% year-on-year decrease in thermal power prices and further reductions in renewable energy prices post-August 2025 due to increased competition [1] Dividend Impact - The company's fixed dividend payout ratio, projected at 60% for 2025, will be affected by the net profit decline, impacting dividend distributions [1] - Dividends are crucial for Huaneng, which is characterized by high dividend yields [1] Investment Rating - Citigroup maintains a "Buy" rating for Huaneng International Power with a target price of 6.2 HKD [1]