Core Viewpoint - Citigroup has downgraded the ratings of Huaneng International Power's H-shares (00902) and A-shares (600011.SH) from "Buy" to "Sell" due to expectations of declining net profits starting in 2026, driven by larger-than-expected electricity price reductions and limited room for coal cost decreases [1] Group 1: Rating Changes and Price Targets - Huaneng's target price for H-shares has been reduced from HKD 7.2 to HKD 4.5, while the target price for A-shares has been lowered from RMB 10 to RMB 6.25 [1] - The expected return on equity for Huaneng in 2025 is projected at 9.8%, the highest level since 2015, but it may face downward risks [1] Group 2: Profit Forecast Adjustments - Citigroup has revised its net profit forecasts for Huaneng for 2025 to 2027 down by 7%, 46%, and 71% respectively [1] - The estimated net profit for Huaneng in 2023 is projected to be RMB 7.17 billion, representing a year-on-year decline of 38%, with a further estimated drop to RMB 3.979 billion in 2027, a decrease of 44.5% year-on-year [1] Group 3: Dividend Yield Expectations - The expected dividend yield for Huaneng's H-shares in 2026 is 4.9%, while for A-shares it is 3.6%, which are considered not high [1]

Core Viewpoint - Citigroup has downgraded the ratings of Huaneng International (600011) H-shares (00902) and A-shares (600011.SH) from "Buy" to "Sell" due to anticipated declines in net profit starting in 2026, driven by larger-than-expected electricity price reductions and limited room for coal cost decreases [1] Group 1: Rating and Price Target Changes - The target price for Huaneng's H-shares has been reduced from HKD 7.2 to HKD 4.5, while the target price for A-shares has been lowered from CNY 10 to CNY 6.25 [1] - The expected return on equity for 2025 is projected at 9.8%, the highest level since 2015, but it may face downward risks [1] Group 2: Profit Forecast Adjustments - Huaneng's net profit forecasts for 2025, 2026, and 2027 have been cut by 7%, 46%, and 71% respectively [1] - The estimated net profit for this year is CNY 7.17 billion, representing a year-on-year decline of 38%, with a further expected drop to CNY 3.979 billion in 2027, a decrease of 44.5% year-on-year [1] Group 3: Dividend Yield Expectations - The expected dividend yield for Huaneng's H-shares and A-shares in 2026 is projected to be 4.9% and 3.6% respectively, which is considered not high [1]

Core Viewpoint - The Senegalese Energy Regulatory Commission (CRSE) has officially approved a new electricity pricing scheme aimed at reducing electricity costs for small users by 10% starting next year [1] Group 1: Pricing Structure - The new pricing structure introduces a targeted 10% reduction for the first tier of electricity consumption, benefiting low-power residential and professional users [1] - The reduction applies to both postpaid and Woyofal prepaid users, ensuring equitable treatment for all small users [1] Group 2: Beneficiaries and Impact - By 2026, over 2.6 million users nationwide are expected to benefit from this price reduction [1] - For low-power residential users, the price for the first tier (0 to 150 kWh) is set at 82 West African francs per kWh, while for low-power professional users, the price for the first 50 kWh is reduced to 147.43 West African francs per kWh [1] Group 3: Economic Implications - This social measure is projected to result in a revenue decrease of approximately 18.279 billion West African francs for the Senegalese National Electricity Company [1] - However, the CRSE's analysis indicates that this revenue reduction will not jeopardize the industry's viability, as the projected total revenue for 2026 remains within the allowable maximum revenue standards [1] - The proposal from the Senegalese National Electricity Company is deemed reasonable, maintaining unchanged rates for high-consumption and other customer categories [1]

Core Viewpoint - The Senegalese government announced a 10% reduction in electricity prices for certain users starting January 1, 2026, benefiting over 2.6 million residents and small businesses, aimed at alleviating the electricity cost burden on households and small enterprises [1] Group 1: Price Reduction Details - The electricity price reduction specifically targets low-power residential users and small commercial users, with the first tier of electricity prices for these groups being uniformly reduced by 10% [1] - The new electricity price for low-power residential users will be 82 West African francs per kilowatt-hour (approximately $0.14), while the corresponding price for small commercial users will be 147.43 West African francs per kilowatt-hour [1] Group 2: Impact on Revenue - The price reduction is expected to result in a revenue loss of approximately 18.279 billion West African francs for the Senegalese national distribution company (SENELEC) [1]