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 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 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.

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.

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.