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.

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.

Coal Price Decline: Sxcoal spot coal price at Qinhuangdao fell to RMB686 per ton on September 10, marking a 0.9% weekly and 1.1% monthly decline, with a significant 19.8% drop year-over-year and 8.8% year-to-date.

Market Influences: The decline in coal prices is attributed to increased supply following military parades and major flooding, coupled with weak demand.

Power Stocks Ratings: BofAS rated several Chinese power stocks, including HUANENG POWER and EB ENVIRONMENT as Buy, while HUADIAN POWER was downgraded to Neutral, based on attractive expected yields for 2025.

Short Selling Data: The report includes short selling data for various power stocks, indicating varying levels of market activity and investor sentiment.

Operational Performance: CHINA RES POWER reported a total net generation of 20.7334 million MWh in August, marking an 8.9% increase year-over-year, with wind and photovoltaic power generation rising significantly by 19.4% and 30.1%, respectively.

Year-to-Date Generation: For the first eight months of 2025, the company's total net generation reached 144 million MWh, reflecting a 5.9% year-over-year growth.

Chinese Power Stocks Performance: BofA Securities reported that Chinese power stocks' 1H25 results met expectations, showing strong earnings in thermal power and environmental sectors, while gas, wind, and solar producers underperformed.

Market Outlook and Ratings: BofA shifted to a neutral stance on thermal power due to potential downward pressure on electricity prices, downgrading several companies while maintaining a Buy rating for EB ENVIRONMENT, which exceeded profit expectations.