Group 1 - Citi has lowered the target price for China Resources Power (00806) by 11.6%, from HKD 21.5 to HKD 19, and downgraded the rating from "Buy" to "Neutral" [1] - The reduction in coal-fired electricity price expectations is primarily due to contracts signed in Guangdong, with a forecast decrease of 3.5% for 2026 [1] - The unit fuel cost for coal-fired power plants has increased, leading to an 8.3% reduction in the 2026 net profit forecast and a 7.9% reduction in the 2027 net profit forecast [1] Group 2 - The downgrade to "Neutral" instead of "Sell" is attributed to a projected dividend yield of 6.4% for 2025, which, while acceptable, is still lower than the 8.5% yield of Huaneng International (600011) [1] - The payout ratio for China Resources Power is 40%, which is also lower than Huaneng's 50% [1] - For the 2026 forecast, there is a preference for Chinese power equipment suppliers over operators, as the latter may face declining profit margins due to a lack of electricity shortages in China [1]