CICC Raises CGN POWER TP to HKD4.19; 1Q Results In Line
I'm LongbridgeAI, I can summarize articles.CICC has raised the target price for CGN POWERto HKD4.19 following the company's first-quarter results, which met expectations with a revenue of RMB16.3 billion and a net profit of RMB2.74 billion. The report highlights a rebound in electricity tariffs in South China, with May's composite tariff rising 28% YoY. CICC maintains its earnings forecasts and an Outperform rating, citing factors like increased demand due to early summer weather and rising coal costs as potential positives for nuclear power earnings this summer.
CICC issued a report stating that CGN POWER (01816.HK) +0.040 (+1.163%) Short selling $38.55M; Ratio 35.578% 's first-quarter results were in line with the brokers expectations. Revenue amounted to RMB16.3 billion, down 13.3% YoY; net profit was RMB2.74 billion, down 9.3% YoY, meeting the brokers forecasts.
The report noted that a rebound trend in electricity tariffs in South China has begun to emerge. Guangdongs composite tariff for May was RMB483 per megawatt-hour, up 28% YoY and 30% MoM. At the end of March, spot electricity prices in the southern region also rose. The broker believes that earlier-than-usual summer weather in South China boosting demand, coupled with rising coal-fired power fuel costs amid geopolitical conflicts, may have a positive impact on market electricity prices and earnings for nuclear power during the summer peak season.
CICC maintained its earnings forecasts for CGN POWER for this year and next. It kept an Outperform rating. Considering that mechanism tariff policies enhance earnings visibility for nuclear power, the broker raised its TP for CGN (003816.SZ) +0.040 (+0.881%) A-shares and CGN POWER (01816.HK) +0.040 (+1.163%) Short selling $38.55M; Ratio 35.578% H-shares by 5% to RMB5.32 and HKD4.19, respectively. (ha/j)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-30 12:25.) (A Shares quote is delayed for at least 15 mins.)
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