Citi Lowers Target Price for CHINA RES POWER (00836.HK) to $19, Expresses Increased Optimism for Chinese Power Equipment Suppliers Next Year | Intellectia.AI
Citi Lowers Target Price for CHINA RES POWER (00836.HK) to $19, Expresses Increased Optimism for Chinese Power Equipment Suppliers Next Year
Written by Emily J. Thompson, Senior Investment Analyst
Citi Research Downgrade: Citi Research downgraded CHINA RES POWER from Buy to Neutral, reducing its 2026/2027 net profit forecasts by 8.3% and 7.9% respectively due to a new contract with Guangdong Province.
Price Forecast Adjustments: The broker lowered its coal-fired power price forecast by 3.5% YoY for 2026 and increased the unit fuel cost for coal-fired plants, indicating a shift in market expectations.
Target Price Reduction: Citi Research decreased its target price for CHINA RES POWER by 11.6%, from $21.5 to $19, based on discounted cash flow (DCF) valuation.
Market Outlook: The report suggests a more favorable outlook for Chinese power equipment suppliers compared to power generation operators, who may face declining profit margins due to lower electricity prices.
Wall Street analysts forecast 00836 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00836 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 00836 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00836 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: 18.210
Low
Averages
High
Current: 18.210
Low
Averages
High
Citi Research
Buy
to
Neutral
downgrade
$19
Al Analysis
2025-12-12
Reason
Citi Research
Price Target
$19
Al Analysis
2025-12-12
downgrade
Buy
to
Neutral
Reason
Citi Research downgraded CHINA RES POWER from Buy to Neutral primarily due to a reduction in its net profit forecasts for 2026 and 2027 by 8.3% and 7.9%, respectively. This adjustment followed the signing of a contract with Guangdong Province, which prompted the broker to lower its coal-fired power price forecast (a 3.5% year-over-year decrease for 2026, compared to a previous estimate of a 1.5% decline) and to increase the unit fuel cost for coal-fired plants (a 1% year-over-year drop for 2026, previously a 3% decrease). Additionally, Citi Research expressed a more optimistic outlook for Chinese power equipment suppliers over power generation operators, citing concerns about declining profit margins for the latter due to lower market electricity prices amid no power shortages in China. Consequently, the target price for CHINA RES POWER was reduced by 11.6% to $19 from $21.5.
Citi
Buy
downgrade
2025-08-22
Reason
Citi
Price Target
2025-08-22
downgrade
Buy
Reason
The analyst rating from Citi for CHINA RES POWER (00836.HK) was maintained as a Buy despite lowering the net profit forecast for the years 2025-27 by 4-10%. The reason for this rating is based on the company's in-line coal power earnings, which are expected to benefit from falling coal prices, even though the interim earnings were behind forecast due to greater-than-expected reductions in renewable energy tariffs and the impact of one-time projects. Additionally, the target price was reduced from HKD22.5 to HKD21.5.
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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.
