M Stanley lowered its revenue forecasts for Huaneng Power for 2026 to 2027 by 8% to 10% due to conservative power generation assumptions and declining on-grid tariffs. The broker expects a 1% decline in blended tariffs in 2026, with lower annual contract prices offsetting spot market strength. While the target price for Huaneng Power H-shares was raised from HKD 5.5 to HKD 6.1, the net profit forecasts for 2026 and 2027 were adjusted, with a slight increase for 2026 and a significant decrease for 2027. Overall, revenue and net profit are projected to decline during this period, leading to an Equalweight rating.
