Citi Research downgraded CHINA RES POWER from Neutral to Sell and reduced its target price due to expectations of declining net profit resulting from reductions in electricity prices and utilization rates. The report highlighted concerns over negative free cash flow in 2025 and indicated that the company's dividend payout ratio would remain at 40%. Additionally, the forecasted dividend yield for 2026 of 5.1% was deemed unattractive compared to the 4.2% yield of 10-year US treasuries, especially in light of the large earnings volatility.
