Zhi Tong Cai Jing·2026-03-02 05:45Group 1 - Citigroup downgraded the rating of CLP Holdings (00002) from "Buy" to "Neutral" due to challenges in overseas business profitability stemming from weakening wholesale electricity prices in Australia and the reduction of market-based electricity prices in China [1] - The bank does not recommend a "Sell" rating for CLP, as its dividends remain sustainable supported by its Hong Kong operations [1] - Citigroup revised its net profit forecasts for CLP for 2026 to 2028 down by 5% to 7% to reflect the downward pressures from its Australian and Chinese businesses [1] Group 2 - The target price for CLP was raised by 2.6% to HKD 78 based on expected interest rate cuts in the US, with a projected dividend yield of 4.4% for 2026 deemed reasonable [1] - Among Hong Kong utility stocks, Citigroup favors China Resources Power (00270) due to a dividend yield exceeding 6% [1] - The bank also has a positive outlook on Cheung Kong Infrastructure Holdings (01038) and Power Assets Holdings (00006), as substantial proceeds from the sale of the UK electricity grid can be utilized for future acquisitions [1]