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.
Wall Street analysts forecast 00902 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00902 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 00902 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 00902 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: 5.960
Low
Averages
High
Current: 5.960
Low
Averages
High
Citi
initiated
$7.2
Al Analysis
2026-01-06
Reason
Citi
Price Target
$7.2
Al Analysis
2026-01-06
initiated
Reason
Citi has added HUANENG POWER to its 30-day downside catalyst watchlist due to concerns that the company's market base electricity price for 2026 is expected to fall below market expectations. The report indicates that the weighted average market base tariff in key provinces where HUANENG POWER sells electricity is projected to decrease by 13.4% year-over-year in 2026. Additionally, the average coal electricity tariff for HUANENG POWER is estimated to drop by 8.9% year-over-year, coinciding with a significant increase in electricity production capacity from coal power plants in China. Despite these concerns, HUANENG POWER has been assigned a target price of HKD7.2 and a Buy rating, suggesting that Citi sees potential for recovery or value in the stock despite the anticipated declines in tariffs.
CICC
CICC
Outperform
maintain
$8.03
2025-11-03
Reason
CICC
CICC
Price Target
$8.03
2025-11-03
maintain
Outperform
Reason
The analyst rating for Huaneng Power (00902.HK) was maintained at "Outperform" by CICC due to the company's strong financial performance, particularly the significant increase in net profit attributable to the parent company, which rose 89% year-over-year in 3Q25, greatly exceeding expectations. Additionally, the 9M25 net profit reached a historical high, up 43% year-over-year. CICC also noted the attractiveness of the current dividend yield in the A-share and Hong Kong stock markets, which contributed to their positive outlook. They kept the target price for H-shares at $8.03, reflecting a 20% increase.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for 00902
Unlock Now
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.
