"Big Banks" Bank of America Securities adjusts target prices for mainland power stocks, with a preference for hydropower in the sector; Huadian's rating downgraded to "underperform the market."

Bank of America Securities' research report points out that after the mainland independent power producers announced their fiscal year 2025 results, it confirmed the bank's concerns about the decline in on-grid electricity prices and utilization hours. Bank of America Securities prefers hydropower > nuclear power > wind/solar power > coal-fired independent power producers, and has downgraded Huadian (01071.HK) to "underperform" due to rising coal costs.

The bank stated that the wind power supply chain continues to benefit from the growth of high-profit export businesses, thereby supporting Bank of America Securities' "buy" rating on Dongfang Cable (603606.SH) and the recent upgrade of Goldwind (02208.HK) to "buy." After the performance of Everbright Environment (00257.HK) and Guangdong Investment (00270.HK) exceeded expectations, it emphasized a "buy" rating for both. The bank adjusted the target prices for multiple stocks in the sector, details as follows:

Stock | Investment Rating | Target Price (HKD)

China General Nuclear Power (01816.HK) | Underperform | 2.5 -> 3

China General Nuclear (003816.SZ) | Underperform | 3.1 RMB -> 3.7 RMB

Huadian (01071.HK) | Neutral -> Underperform | 4.3 -> 3.5

Huadian A Shares (600027.SH) | Neutral -> Underperform | 5.1 RMB -> 4.1 RMB

Longyuan (00916.HK) | Underperform | 6.1 -> 5.8

Longyuan A Shares (001289.SZ) | Underperform | 13.7 RMB -> 12.8 RMB

Datang New Energy (01798.HK) | Underperform | 1.9 -> 1.55

Guangxi Power (600236.SH) | Buy | 11.3 RMB -> 11.5 RMB

Power Assets Holdings (00006.HK) | Buy | 63 -> 63.5