---
title: "Citi raises the target price for CHINA POWER International to HKD 3.5, with first-half performance slightly exceeding expectations"
description: "Citi raised the target price for CHINA POWER International to RMB 3.5, based on slightly better-than-expected net profit in the first half of 2025, reaching RMB 2.587 billion, a year-on-year increase "
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/254373640.md"
published_at: "2025-08-25T05:59:32.000Z"
---

# Citi raises the target price for CHINA POWER International to HKD 3.5, with first-half performance slightly exceeding expectations

> Citi raised the target price for CHINA POWER International to RMB 3.5, based on slightly better-than-expected net profit in the first half of 2025, reaching RMB 2.587 billion, a year-on-year increase of 0.7%. The cost of coal fuel decreased by 14.4% to RMB 234.52 per megawatt-hour, while the on-grid electricity price for hydropower increased by 10.6% to RMB 278.42 per megawatt-hour. The "Buy" rating is maintained, citing ample coal supply, increased rainfall driving a recovery in hydropower utilization, and attractive valuation

Citi released a report indicating that China Power International (02380.HK) is expected to achieve a year-on-year net profit growth of 0.7% in the first half of 2025, reaching RMB 2.587 billion. The profit growth from wind and coal-fired power generation businesses is partially offset by a decline in profits from solar and hydropower businesses. The performance during this period slightly exceeded expectations, mainly due to a 14.4% year-on-year decrease in unit coal fuel costs to RMB 234.52 per megawatt-hour, which was better than expected, and a 10.6% year-on-year increase in hydropower grid electricity prices to RMB 278.42 per megawatt-hour.

The bank stated that based on the decline in coal costs, it has raised its net profit forecast for China Power in 2025 by 2%, with the target price adjusted up by 3% from RMB 3.4 to RMB 3.5. It maintains a "Buy" rating for several reasons: (i) abundant coal supply in the second half of 2025, with further downward potential for coal costs; (ii) increased rainfall in July and August driving a recovery in hydropower utilization rates; (iii) attractive valuations, with a forecasted price-to-earnings ratio of 8.7 times, a price-to-book ratio of 0.9 times, and a dividend yield of 5.7%

### Related Stocks

- [02380.HK - CHINA POWER](https://longbridge.com/en/quote/02380.HK.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.