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.
Wall Street analysts forecast 01816 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01816 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 01816 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01816 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 3.020
Low
Averages
High
Current: 3.020
Low
Averages
High
BofA Securities
Underperform
initiated
$2.6
Al Analysis
2025-10-23
Reason
BofA Securities
Price Target
$2.6
Al Analysis
2025-10-23
initiated
Underperform
Reason
The analyst rating of Underperform for CGN Power (01816.HK) is based on several key factors:
1. Profit Growth Struggles: The company is facing challenges with profit growth due to headwinds from power tariffs and fuel costs.
2. Burden of Construction Capacity: The surge in capacity under construction is expected to burden free cash flow (FCF), further complicating the company's financial situation.
3. Valuation Misalignment: The current valuation of CGN Power is seen as severely misaligned with its fundamentals, indicating that the stock may be overvalued.
4. Unattractive Risk/Reward Profile: Given the above factors, the risk/reward profile for investing in CGN Power is considered unattractive.
5. Negative Catalysts Ahead: The stock is anticipated to face negative catalysts in the near future, including upcoming financial reports, changes in power tariffs, and fuel contracts, which could further impact its performance.
The target price set at HKD2.6 reflects a valuation that is still above historical averages, suggesting limited upside potential.
UBS
UBS
Sell
to
Neutral
upgrade
2025-08-28
Reason
UBS
UBS
Price Target
2025-08-28
upgrade
Sell
to
Neutral
Reason
The analyst rating for CGN POWER was upgraded from Sell to Neutral by UBS due to the company's strong positioning in China's accelerated deployment of small modular reactors (SMRs) and the potential long-term benefits from developments in nuclear fusion technology and breakthroughs in nuclear energy. UBS considers the current valuation to be reasonable with limited downside risk, which led to an increase in the target price from HKD 2.3 to HKD 3.4 based on discounted cash flow analysis.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
