According to HKEx disclosure documents, China Power International Development Co., Ltd. (hereinafter referred to as: China Power) announced its 2023 half-year positive earnings forecast on July 10.。According to the report, for the six months ended June 30, 2023, through the Board's preliminary estimate of its unaudited internal financial information, the profit attributable to China's power equity holders is expected to reach 1.8 billion yuan to 2 billion yuan (RMB, the same below), an increase of about 112 to 135 percentage points over the same period in 2022.。

The report also said that the company's earnings announcement was mainly due to three major factors: first, China Power's independent development and acquisition of high-quality clean energy assets, accelerating the pace of clean energy transformation and synergistic growth, resulting in a significant increase in profits during the review period, basically offsetting the decline in profits in the hydropower sector caused by the drought in the first half of the year;。

In response, Citi released a research report saying that China Power's first-half net profit is expected to grow 112% to 135% year-on-year, significantly exceeding market expectations and accounting for 48% to 54% of 2023 earnings, while net profit in the first half of 2022 will only account for 32% of the year.。

Citi said China's power profit growth stemmed from a rebound in coal-fired power plant margins, up from a net loss of 10.9.6 billion yuan to recover to the first half of this year's net profit of about 500 million yuan, unit fuel costs fell 9% to 10% year-on-year; wind and solar power generation in 2022 increased 74% and 38% year-on-year compared to the end of 2021, respectively, the two profits increased significantly; but due to the drought in South China, the hydropower sector delayed some of the profit growth。In response, China Power plans to release details of its interim results on August 24, and the bank expects to further cut unit fuel costs and increase renewable energy capacity in the second half of the year.。In summary, Citi maintains China Power's HK $4 price target with a "buy" rating.。

In addition, Daiwa also released a research report saying that China Power's expected net profit in the first half of the year was about 1.8 billion to 2 billion yuan, significantly exceeding market expectations, mainly due to the development of clean energy business, thus offsetting the weak momentum of hydropower in the first half of the year.。

In this regard, Daiwa now predicts that the annual ignition spread of thermal power will be from 0 per kilowatt-hour..13 yuan rose to 0.16 yuan, and due to the decline in solid thermal electricity prices and standard coal prices, is expected to contribute more than 700 million yuan to China Power's full-year net profit.。In addition, as China enters the rainy season, the bank is also looking forward to raising its full-year hydropower net profit forecast to 1.400 million yuan。As a result, Daiwa raised its earnings per share forecast for China Power 2023-2025 by 4% to 20%, with a target price of 3.HK $9 raised to 4.HK $1 and maintains its "Buy" rating。