Ge Long Hui·2026-01-06 02:47Core Viewpoint - Citigroup has placed Huaneng International Power Co. on a watchlist for downward catalysts due to the market's basic electricity price for 2026 appearing lower than expected [1] Group 1: Market Conditions - Huaneng's electricity sales in the first three quarters of 2025 are derived 63.5% from Guangdong, Zhejiang, and Jiangsu provinces [1] - The weighted average market basic electricity price in these three provinces is projected to decline by 13.4% year-on-year for 2026 [1] Group 2: Production and Pricing Forecast - China's coal-fired power plants are expected to see a year-on-year capacity increase of 65% [1] - Huaneng's average coal-fired electricity price is anticipated to decrease by 8.9% year-on-year for 2026 [1] Group 3: Investment Rating - Citigroup has set a target price of HKD 7.2 for Huaneng and maintains a "Buy" rating [1]