02380 Overview

Citi Research Downgrade: Citi Research downgraded CHINA POWER from Buy to Sell, lowering its target price from $3.5 to $2.75 and reducing net profit forecasts for 2025-2027 by 15%, 27%, and 38%, respectively.

Impact of Electricity Tariffs: The downgrade is attributed to expected declines in earnings for 2026 due to reduced electricity tariffs in China.

Dividend Outlook: While the company is not expected to cut dividends for 2025-2026, the projected dividend yield of 5.7% for 2026 may not sufficiently mitigate the earnings risks associated with falling power tariffs.

Short Selling Activity: There is significant short selling activity on CHINA POWER, with $20.05 million in short sales and a ratio of 34.121%.

Challenges in China's Power Industry: HSBC Research indicates that China's power industry will experience weakened growth momentum in the first year of the 15th Five-Year Plan due to declining electricity prices, a slowdown in new installations, and a stabilizing policy environment.

Downgrades and Ratings: HSBC has downgraded HUANENG POWER from Hold to Underweight and CHINA RES POWER from Buy to Hold, reflecting concerns over their earnings forecasts.

Optimism for CHINA LONGYUAN: The report expresses optimism for CHINA LONGYUAN, anticipating that its earnings growth will lead the industry, driven by strong performance in wind resources.

Attractive Dividend Yields: CHINA POWER is projected to have a 5.8% dividend yield in FY26, while CHINA YANGTZE POWER is expected to yield about 3.7%, making them attractive options among their peers.

Electricity Sales in November 2025: China Power reported a total electricity sale of 10,099,700 MWh in November 2025, marking a 15.38% increase compared to November 2024.

Year-to-Date Sales Performance: For the first eleven months of 2025, the total electricity sold was approximately 116,000,000 MWh, reflecting a 1.17% decrease from the same period in the previous year.

Target Price Adjustment: BofA Securities raised its target price for CHINA POWER from $3.1 to $3.5 while maintaining a Neutral rating, despite lowering its earnings forecasts for 2025-2027 by an average of 2%.

Power Tariff Expectations: Management at the Jiangsu Changshu power plant anticipates a decrease in the annual contract power tariff by RMB5-6 cents next year due to lower coal prices and an increase in capacity tariff.

Strategic Changes in Trading: The power plant plans to reduce its annual contract proportion from 76% to 50% and increase spot market trading, aiming to leverage its locational advantage for better tariffs.

Short Selling Data: As of December 18, 2025, short selling for CHINA POWER was reported at $1.39 million with a ratio of 22.539%.

Goldman Sachs Portfolio: Goldman Sachs has identified a portfolio of high dividend yield and growth stocks from the Asia-Pacific excluding Japan (APxJ) region, focusing on the top 50 stocks with the highest expected dividend yields and positive growth over the next two years.

Hong Kong Stocks Listed: The report includes several Hong Kong stocks, such as C&D International Group, Bosideng, and Chow Tai Fook, along with their short selling data and price changes.

Market Trends: Morgan Stanley predicts that the downside in the Chinese real estate market will continue into 2026, with expectations of significant price drops in both first- and second-hand properties.

Short Selling Insights: The report provides insights into short selling activities for various Hong Kong stocks, indicating the level of market skepticism surrounding these companies.

Stock Performance: China Power (02380.HK) experienced a slight decline in stock price, down 0.296% to -0.010.

Short Selling Activity: The company reported short selling of $4.30 million, with a short selling ratio of 18.957%.

Electricity Sales in September 2025: The total electricity sold by China Power and its subsidiaries in September 2025 was 9,465,705 MWh, marking an 11.51% year-over-year decrease.

Year-to-Date Sales: For the first nine months of 2025, the combined electricity sales totaled 96,266,971 MWh, reflecting a year-over-year decrease of 2.24%.