Ge Long Hui·2026-01-19 02:48Core Viewpoint - Citigroup has downgraded the ratings of Huaneng International's H-shares and A-shares from "Buy" to "Sell," reflecting concerns over future profitability and market conditions [1] Group 1: Rating Changes - Huaneng International's target price for H-shares has been reduced from HKD 7.2 to HKD 4.5 [1] - The target price for A-shares has been lowered from HKD 10 to HKD 6.25 [1] Group 2: Profitability Outlook - Citigroup anticipates that Huaneng's net profit will peak in 2025, followed by a decline in 2026 and 2027 [1] - The expected decrease in profitability is attributed to a larger-than-expected reduction in electricity prices and limited downward potential for coal costs [1] Group 3: Return on Equity - The projected return on equity for the company in 2025 is 9.8%, which is the highest level since 2015 [1] - However, this return may face downward risks due to the anticipated market conditions [1]