CICC Increases Huaneng Power (00902.HK) Target Price to $8.03 Following Record High 3Q Results
Operating Revenue and Profit: Huaneng Power reported a 7.1% year-over-year decline in 3Q25 operating revenue at RMB60.94 billion, but net profit attributable to the parent company surged 89% YoY to RMB5.58 billion, exceeding expectations.
Year-to-Date Performance: For the first nine months of 2025, the net profit attributable to the parent company reached a record high of RMB14.84 billion, reflecting a 43% increase compared to the previous year.
Analyst Ratings and Target Prices: CICC maintained an "Outperform" rating for Huaneng Power, keeping the target price for its A-shares at RMB10.49 and increasing the target price for H-shares by 20% to $8.03.
Short Selling Data: As of October 31, 2025, Huaneng Power experienced short selling of $24.85 million, with a short selling ratio of 10.538%.
Trade with 70% Backtested Accuracy
Analyst Views on 00902
About the author
HSI Drops 61 Points, NIO Soars 14%; Energy and Power Utility Stocks Active
Market Performance: The HSI closed down 61 points (0.2%) at 25,898, with total market turnover dropping 23% to $254.481 billion.
Automaker Gains: NIO-SW surged 14.1% after reporting its first quarterly profit, while other automakers like GEELY AUTO and XPENG-W also saw significant increases.
Sector Highlights: Intelligent driving and battery stocks experienced notable gains, with CATL rising 9% and WERIDE-W increasing by 7.1%.
Energy and Coal Stocks: Power utilities and coal stocks performed well, with companies like HUANENG POWER and CHINA SHENHUA seeing increases of 3.5% and 4.6%, respectively.
HSI Gains 212 Points at Midday, Driven by HSBC Holdings and AIA; Speculation Surrounds Energy Transition Concepts
Market Performance: Hong Kong stocks saw a rebound in the morning session, with the HSI rising 212 points (0.84%) to 25,462, while the HSCEI and HSTECH also experienced slight increases. Total turnover reached $164.185 billion.
Financial Sector Gains: Major financial stocks like HSBC and Standard Chartered rose by over 3%, with AIA increasing by nearly 4%. Short selling activity was notable across these stocks, indicating investor interest.
Homebuilders and Conglomerates: Homebuilders SHK PPT, HANG LUNG PPT, and LINK REIT saw gains between 2-2.8%, while conglomerates like CKH HOLDINGS and SWIRE PACIFIC also experienced increases of around 2.5-2.8%.
Energy Sector Speculation: Stocks related to energy transition, such as Weichai Power and Wuxi Lead, advanced significantly, with power equipment stocks like Harbin Electric and Dongfang Electric spiking by 8.9% and 14.3%, respectively.
JPM Adjusts CHINA RES POWER Rating to Neutral and Reduces Target Price to HKD17
JPMorgan's Downgrade: JPMorgan has downgraded CHINA RES POWER from Overweight to Neutral and reduced its target price, while maintaining an Underweight rating for HUANENG POWER with a lower target price.
Impact of Price Floor Removal: The removal of the electricity price floor is expected to lead to further declines in on-grid electricity prices for thermal power, potentially compressing profit margins for these companies.
Uncertainty in Tariff Mechanism: Despite the Chinese government's mention of improving the capacity tariff mechanism, there is significant uncertainty regarding its effectiveness and implementation timing.
Negative Earnings Outlook: The earnings outlook for thermal power plants is unfavorable, with market forecasts and dividend predictions facing downside risks.
HSBC Research: Chinese Power Utilities Entering 'Stagnation Phase'
Challenges in China's Power Industry: HSBC Research indicates that China's power industry will experience weakened growth momentum in the first year of the 15th Five-Year Plan due to declining electricity prices, a slowdown in new installations, and a stabilizing policy environment.
Downgrades and Ratings: HSBC has downgraded HUANENG POWER from Hold to Underweight and CHINA RES POWER from Buy to Hold, reflecting concerns over their earnings forecasts.
Optimism for CHINA LONGYUAN: The report expresses optimism for CHINA LONGYUAN, anticipating that its earnings growth will lead the industry, driven by strong performance in wind resources.
Attractive Dividend Yields: CHINA POWER is projected to have a 5.8% dividend yield in FY26, while CHINA YANGTZE POWER is expected to yield about 3.7%, making them attractive options among their peers.
Citi Lowers HUANENG POWER (00902.HK) Rating to Sell, Anticipates NP Drop in 2026/2027
Citi Research Downgrade: Citi Research downgraded HUANENG POWER's H-/A-shares from Buy to Sell, reducing target prices from $7.2/RMB10 to $4.5/RMB6.25.
Profit Expectations: The broker anticipates that HUANENG POWER's net profit will peak in 2025 and decline in 2026-2027 due to significant tariff reductions and limited decreases in unit coal costs.
Return on Equity: The expected return on equity for 2025 is projected at 9.8%, the highest since 2015, but the company may encounter downside risks.
Short Selling Data: As of January 16, 2026, short selling amounted to $34.66 million with a ratio of 11.524%.
Citi Places HUANENG POWER on 30-Day Downside Catalyst Watchlist
Citi's Research Report: Citi has added HUANENG POWER (00902.HK) to its 30-day downside catalyst watchlist due to anticipated declines in market base electricity prices for 2026, which are expected to fall below market expectations.
Electricity Sales and Tariffs: The report indicates that 63.5% of HUANENG POWER's electricity sales in 1-3Q25 are from Guangdong, Zhejiang, and Jiangsu, where the average market base tariff is projected to decrease by 13.4% YoY in 2026.
Coal Power Capacity Growth: China's coal power plants are expected to see a 65% YoY increase in electricity production capacity, leading to an estimated 8.9% YoY drop in HUANENG POWER's average coal electricity tariff in 2026.
Target Price and Rating: HUANENG POWER has been assigned a target price of HKD7.2 and a Buy rating by Citi, despite the challenges posed by declining tariffs and increased production capacity.
HSI Drops 61 Points, NIO Soars 14%; Energy and Power Utility Stocks Active
Market Performance: The HSI closed down 61 points (0.2%) at 25,898, with total market turnover dropping 23% to $254.481 billion.
Automaker Gains: NIO-SW surged 14.1% after reporting its first quarterly profit, while other automakers like GEELY AUTO and XPENG-W also saw significant increases.
Sector Highlights: Intelligent driving and battery stocks experienced notable gains, with CATL rising 9% and WERIDE-W increasing by 7.1%.
Energy and Coal Stocks: Power utilities and coal stocks performed well, with companies like HUANENG POWER and CHINA SHENHUA seeing increases of 3.5% and 4.6%, respectively.
HSI Gains 212 Points at Midday, Driven by HSBC Holdings and AIA; Speculation Surrounds Energy Transition Concepts
Market Performance: Hong Kong stocks saw a rebound in the morning session, with the HSI rising 212 points (0.84%) to 25,462, while the HSCEI and HSTECH also experienced slight increases. Total turnover reached $164.185 billion.
Financial Sector Gains: Major financial stocks like HSBC and Standard Chartered rose by over 3%, with AIA increasing by nearly 4%. Short selling activity was notable across these stocks, indicating investor interest.
Homebuilders and Conglomerates: Homebuilders SHK PPT, HANG LUNG PPT, and LINK REIT saw gains between 2-2.8%, while conglomerates like CKH HOLDINGS and SWIRE PACIFIC also experienced increases of around 2.5-2.8%.
Energy Sector Speculation: Stocks related to energy transition, such as Weichai Power and Wuxi Lead, advanced significantly, with power equipment stocks like Harbin Electric and Dongfang Electric spiking by 8.9% and 14.3%, respectively.
JPM Adjusts CHINA RES POWER Rating to Neutral and Reduces Target Price to HKD17
JPMorgan's Downgrade: JPMorgan has downgraded CHINA RES POWER from Overweight to Neutral and reduced its target price, while maintaining an Underweight rating for HUANENG POWER with a lower target price.
Impact of Price Floor Removal: The removal of the electricity price floor is expected to lead to further declines in on-grid electricity prices for thermal power, potentially compressing profit margins for these companies.
Uncertainty in Tariff Mechanism: Despite the Chinese government's mention of improving the capacity tariff mechanism, there is significant uncertainty regarding its effectiveness and implementation timing.
Negative Earnings Outlook: The earnings outlook for thermal power plants is unfavorable, with market forecasts and dividend predictions facing downside risks.
HSBC Research: Chinese Power Utilities Entering 'Stagnation Phase'
Challenges in China's Power Industry: HSBC Research indicates that China's power industry will experience weakened growth momentum in the first year of the 15th Five-Year Plan due to declining electricity prices, a slowdown in new installations, and a stabilizing policy environment.
Downgrades and Ratings: HSBC has downgraded HUANENG POWER from Hold to Underweight and CHINA RES POWER from Buy to Hold, reflecting concerns over their earnings forecasts.
Optimism for CHINA LONGYUAN: The report expresses optimism for CHINA LONGYUAN, anticipating that its earnings growth will lead the industry, driven by strong performance in wind resources.
Attractive Dividend Yields: CHINA POWER is projected to have a 5.8% dividend yield in FY26, while CHINA YANGTZE POWER is expected to yield about 3.7%, making them attractive options among their peers.
Citi Lowers HUANENG POWER (00902.HK) Rating to Sell, Anticipates NP Drop in 2026/2027
Citi Research Downgrade: Citi Research downgraded HUANENG POWER's H-/A-shares from Buy to Sell, reducing target prices from $7.2/RMB10 to $4.5/RMB6.25.
Profit Expectations: The broker anticipates that HUANENG POWER's net profit will peak in 2025 and decline in 2026-2027 due to significant tariff reductions and limited decreases in unit coal costs.
Return on Equity: The expected return on equity for 2025 is projected at 9.8%, the highest since 2015, but the company may encounter downside risks.
Short Selling Data: As of January 16, 2026, short selling amounted to $34.66 million with a ratio of 11.524%.
Citi Places HUANENG POWER on 30-Day Downside Catalyst Watchlist
Citi's Research Report: Citi has added HUANENG POWER (00902.HK) to its 30-day downside catalyst watchlist due to anticipated declines in market base electricity prices for 2026, which are expected to fall below market expectations.
Electricity Sales and Tariffs: The report indicates that 63.5% of HUANENG POWER's electricity sales in 1-3Q25 are from Guangdong, Zhejiang, and Jiangsu, where the average market base tariff is projected to decrease by 13.4% YoY in 2026.
Coal Power Capacity Growth: China's coal power plants are expected to see a 65% YoY increase in electricity production capacity, leading to an estimated 8.9% YoY drop in HUANENG POWER's average coal electricity tariff in 2026.
Target Price and Rating: HUANENG POWER has been assigned a target price of HKD7.2 and a Buy rating by Citi, despite the challenges posed by declining tariffs and increased production capacity.
