BOCOM International Maintains “Buy” Rating on China Resources Power (00836) with a Target Price of HK$21.14
Zhitong Finance Network
October 3, 2023 10:32:01
According to a research report released by BoCom International, it has decided to keep its “buy” rating for China Resources Power (00836) with a target price of HK$21.14. In the report, the bank highlights the potential for Changxie’s coal purchases to increase in the second half of this year, as well as the favorable price difference between imported and land coal. BoCom International expects the company’s unit fuel costs to decrease by approximately 9% annually. Furthermore, it believes that the thermal power generation sector can benefit from capacity electricity prices, which may compensate for the limited operation hours of thermal power generation projects.
The question of whether thermal power prices will be reduced in the upcoming year remains uncertain, and will largely depend on the extent of the decline in coal prices. BoCom International points out that the incomplete conversion process of thermal power plants throughout the country contributes to this unpredictability.
Please note that the information provided in this article does not constitute investment advice and should be viewed purely as informational. It is important to exercise caution when participating in the stock market due to its inherent risks.
BOCOM International: Maintain a “Buy” rating on China Resources Power (00836) with a target price of HK$21.14
Zhitong Finance Network 2023-10-03 10:32:01
Zhitong Finance APP learned that BoCom International issued a research report indicating that it maintains a “buy” rating for China Resources Power (00836) with a target price of HK$21.14. The company believes that the overall share of Changxie’s coal purchases in the second half of the year still has room to increase. In addition, the price of imported coal is still at a discount compared to land coal big. The bank expects the company’s full year unit fuel costs to fall by around 9% each year. It is also believed that capacity electricity prices are still good for the thermal power generation sector and can compensate to some extent for the insufficient hours of use of thermal power generation projects. As for whether thermal power prices will be reduced in the coming year, the company believes that the final decision still depends on the extent of the reduction in coal prices. The bank believes that due to the incomplete conversion process of thermal power plants throughout the country, the extent of the reduction in thermal power prices in the coming year will still depend on the reduction in coal prices.
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