UBS Adjusts CGN POWER Rating to Neutral and Increases Target Price to HKD3.4
Company Performance: CGN POWER's interim net profit has decreased by 16.3% to RMB5.952 billion, and the company has declared no dividends.
Market Positioning: UBS highlights CGN POWER's strong positioning in China's push for small modular reactors (SMRs) and potential future benefits from advancements in nuclear fusion technology.
Stock Rating Update: UBS has upgraded CGN POWER's rating from Sell to Neutral, citing a reasonable current valuation with limited downside risk.
Target Price Adjustment: The broker has raised the target price for CGN POWER from HKD2.3 to HKD3.4 based on discounted cash flow analysis.
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CICC Increases CGN POWER (01816.HK) Target Price to $3.99 and Boosts 2026 Earnings Projection by 2.5%
Company Performance: CGN POWER's 2025 electricity output met expectations, with a 2% year-on-year increase in total power generation to 247 billion kWh and a 2.36% rise in on-grid electricity volume to 232.6 billion kWh.
Future Projections: CICC forecasts a 2.5% increase in CGN POWER's 2026 earnings to RMB10.3 billion and introduced a new 2027 earnings forecast of RMB11.5 billion, driven by the upcoming production from Huizhou Nuclear Power units.
Stock Rating and Target Price: CICC maintains an "Outperform" rating for CGN POWER, raising the target price for H-shares by 11% to $3.99 and keeping the A-shares target price at RMB5.07, indicating a potential upside of approximately 30%.
Market Sentiment: The broker expresses optimism about the nuclear power industry's growth and dividend potential, reflecting a positive outlook on CGN POWER's stock performance.
CGN MINING Rises Over 10% on Strong Trading Volume; CGN POWER Declines After Earnings Report
CGN Mining Performance: CGN Mining (01164.HK) opened 7.7% higher, reaching an intraday high of HKD4.02, and last traded at HKD3.95, up 12.54% with a trading volume of 134 million shares.
CGN New Energy Update: CGN New Energy (01811.HK) saw a modest increase of 2.46%, trading at HKD2.92 with a turnover of HKD25.5961 million.
CGN Power Financial Results: CGN Power (01816.HK) reported a decline in operating revenue by 4.1% YoY to RMB59.723 billion and a 14.1% drop in net profit to RMB8.576 billion, attributed to market conditions and decreased electricity prices.
Short Selling Data: Short selling for CGN Mining was $31.12M with a ratio of 7.728%, while CGN Power had $12.37M in short selling with a ratio of 8.278%.
