Huatai Securities maintains a "Buy" rating on CGN Power with a target price of 4.37 yuan

Huatai Securities published a report indicating that CGN Power (01816.HK) released its annual report, projecting revenue of RMB 75.697 billion in 2025, a year-on-year decline of 4.11% after adjustment, with a net profit of RMB 9.765 billion, a year-on-year decline of 9.9% after adjustment, close to the bank's expectation of RMB 9.788 billion. The non-recurring net profit is RMB 9.113 billion, a year-on-year decline of 15.13% after adjustment. In the fourth quarter, revenue reached RMB 15.974 billion, a year-on-year decline of 4.21% after adjustment, with a net profit of RMB 1.189 billion, a year-on-year decline of 40.01% after adjustment.

The bank stated that under the guidance of the National Development and Reform Commission, Liaoning is piloting a sustainable development price settlement mechanism for nuclear power, with the proportion of mechanism electricity expected to be about 70% in 2026, and the mechanism electricity price equal to the approved electricity price. The bank believes that the mechanism electricity volume and price for nuclear power are expected to drive the company towards a significant turning point in profitability, maintaining a "Buy" rating. The target price is HKD 4.37