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%.
UBS Raises CN Power Demand Projections for 2028-30, Favors HARBIN ELECTRIC and CGN POWER
UBS Forecast on China's Power Demand: UBS predicts an 8% growth in China's electricity demand from 2028 to 2030, doubling its previous forecast, driven by AI data centers, exports, and electrification.
Top Stock Picks: UBS highlights HARBIN ELECTRIC, CGN POWER, DONGFANG ELEC, and GOLDWIND as its top investment choices in the electricity sector.
Investment Ratings and Target Prices: Various companies received updated investment ratings and target prices, with notable mentions including GOLDWIND and HARBIN ELECTRIC, both rated as "Buy."
Short Selling Data: The report includes short selling data for the highlighted stocks, indicating varying levels of market activity and investor sentiment.
HSI Reduces Losses to Under 200 Points as Market Nears Close; Nuclear Power Sector Defies Trend with CGN Mining Soaring Over 7%
Market Performance: The Hong Kong stock market reopened after a holiday, with the HSI initially down 57 points and later dropping by 440 points to a low of 26,517 before closing at 26,778, down 179 points or nearly 0.7%, with a turnover of HKD154.039 billion.
Nuclear Power Sector Gains: Despite the overall market decline, the nuclear power sector saw significant gains, with CNNC INT'L rising by 22.56% and other related stocks like CGN MINING and HARBIN ELECTRIC also experiencing notable increases.
UBS Predicts Guangdong Nuclear Power Rate Changes Will Favor CGN POWER and Its Suppliers
Impact of Nuclear Power Tariff Policy: CGN POWER's management highlighted that the current nuclear power tariff policy in Guangdong Province negatively affects operators, but a UBS report suggests potential improvements in the 2026 power trading scheme.
Potential Beneficiaries: UBS anticipates that CGN POWER could benefit significantly from tariff revisions, as approximately 70% of its capacity is in Guangdong, and upstream suppliers like HARBIN ELECTRIC, YINGLIU, and DONGFANG ELEC may also gain from increased project visibility and margin recovery.
Citi's Ratings and Target Prices for Power Utilities (Table)
Stock Performance Overview: Various Chinese energy stocks show mixed performance, with CHINA RES POWER and CGN POWER experiencing declines, while HUADIAN POWER and CHINA SUNTIEN report gains.
Short Selling Activity: Significant short selling activity is noted across several stocks, with CGN POWER having the highest short selling ratio at 34.136%, indicating bearish sentiment among investors.
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%.
UBS Raises CN Power Demand Projections for 2028-30, Favors HARBIN ELECTRIC and CGN POWER
UBS Forecast on China's Power Demand: UBS predicts an 8% growth in China's electricity demand from 2028 to 2030, doubling its previous forecast, driven by AI data centers, exports, and electrification.
Top Stock Picks: UBS highlights HARBIN ELECTRIC, CGN POWER, DONGFANG ELEC, and GOLDWIND as its top investment choices in the electricity sector.
Investment Ratings and Target Prices: Various companies received updated investment ratings and target prices, with notable mentions including GOLDWIND and HARBIN ELECTRIC, both rated as "Buy."
Short Selling Data: The report includes short selling data for the highlighted stocks, indicating varying levels of market activity and investor sentiment.
HSI Reduces Losses to Under 200 Points as Market Nears Close; Nuclear Power Sector Defies Trend with CGN Mining Soaring Over 7%
Market Performance: The Hong Kong stock market reopened after a holiday, with the HSI initially down 57 points and later dropping by 440 points to a low of 26,517 before closing at 26,778, down 179 points or nearly 0.7%, with a turnover of HKD154.039 billion.
Nuclear Power Sector Gains: Despite the overall market decline, the nuclear power sector saw significant gains, with CNNC INT'L rising by 22.56% and other related stocks like CGN MINING and HARBIN ELECTRIC also experiencing notable increases.
UBS Predicts Guangdong Nuclear Power Rate Changes Will Favor CGN POWER and Its Suppliers
Impact of Nuclear Power Tariff Policy: CGN POWER's management highlighted that the current nuclear power tariff policy in Guangdong Province negatively affects operators, but a UBS report suggests potential improvements in the 2026 power trading scheme.
Potential Beneficiaries: UBS anticipates that CGN POWER could benefit significantly from tariff revisions, as approximately 70% of its capacity is in Guangdong, and upstream suppliers like HARBIN ELECTRIC, YINGLIU, and DONGFANG ELEC may also gain from increased project visibility and margin recovery.
Citi's Ratings and Target Prices for Power Utilities (Table)
Stock Performance Overview: Various Chinese energy stocks show mixed performance, with CHINA RES POWER and CGN POWER experiencing declines, while HUADIAN POWER and CHINA SUNTIEN report gains.
Short Selling Activity: Significant short selling activity is noted across several stocks, with CGN POWER having the highest short selling ratio at 34.136%, indicating bearish sentiment among investors.
