Citi Expects HUANENG POWER EPS and Dividends to Decline in 2026-2027, Rates Sell
I'm LongbridgeAI, I can summarize articles.Citi's research report indicates that HUANENG POWERis expected to see a decline in EPS and dividends in 2026-2027, leading to a reduced appeal as a dividend stock. The company reported a 9.8% YoY drop in Q1 net profit to RMB4.483 billion, with significant decreases in contributions from wind and solar power. Electricity sales in China also fell by 4.8% YoY. Citi maintains a Sell rating on HUANENG POWER with a target price of HKD4.6.
Citi issued a research report stating that HUANENG POWER (00902.HK) +0.090 (+1.415%) Short selling $55.29M; Ratio 27.462% recorded a 1Q net profit decline of 9.8% YoY to RMB4.483 billion. Among which, contributions from wind and solar power plants decreased. Pre-tax profit from wind power fell 19.7% YoY to RMB1.808 billion, while solar power dropped 58.7% YoY to RMB0.233 billion, which was not offset by a 9% YoY increase in profit from coal-fired power plants to RMB4.341 billion. During the period, electricity sales in China declined 4.8% YoY, while the average tariff decreased 5.6% YoY to RMB460.73 per megawatt-hour.
Citi expects HUANENG POWER's EPS and dividends to decline in 2026-2027, reducing its attractiveness as a dividend stock. The broker maintained its Sell rating on HUANENG POWER with a TP of HKD4.6. (ec/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-29 12:25.)
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