In "Major Banks," China International Capital Corporation raised the target price for CGN Power to 3.99 yuan and adjusted this year's earnings forecast upward by 2.5%

CICC's research report pointed out that CGN Power (01816.HK) met expectations for electricity generation last year, with total power generation increasing by 2% year-on-year to 247 billion kWh, and total grid-connected electricity increasing by 2.36% year-on-year to 232.6 billion kWh.

The report mentioned that the electricity price in Guangdong has been implemented as expected, and the profitability of nuclear power within the province has bottomed out and is recovering. CICC stated that considering the delivery of the Huizhou nuclear power assets, Huizhou Units 1 and 2 are expected to contribute incremental production this year, raising the group's earnings forecast for this year by 2.5% to RMB 10.3 billion (the same below), and introducing a profit of RMB 11.5 billion for 2027. The current stock price corresponds to a price-to-earnings ratio of 19.1 times and 17.2 times for CGN Power (003816.SZ) A shares in 2026 and 2027, respectively, and a price-to-earnings ratio of 13.6 times and 11.9 times for H shares.

CICC is optimistic about the stable growth and dividend value of the nuclear power industry, maintaining an "outperform industry" rating for the stock. Based on the 2026 earnings forecast, it raised the H share target price by 11% to HKD 3.99, while maintaining the A share target price at RMB 5.07, corresponding to forecasted price-to-earnings ratios of 24.8 times and 22.3 times for A shares in 2026 and 2027, and 17.6 times and 15.8 times for H shares, with an upward potential of about 30% from the current stock price