Citigroup Forecasts Peak Earnings and Dividends for China Res Power, Sets HK$19 Target with Neutral Stance

Stock News
Mar 18

Citigroup issued a research report indicating that CHINA RES POWER (00836) is projected to post a net profit of HK$145.19 billion for 2025, representing a year-on-year increase of 0.9%, which exceeds market expectations by 5%. Core profit is expected to grow by 9.9% to HK$152.43 billion. The final dividend rose by 11.4% to HK$0.691, but the full-year dividend declined by 5.3% to HK$1.127, equivalent to an annual dividend yield of 6%. The payout ratio remained unchanged at 40%. The bank assigned a target price of HK$19 and a "Neutral" rating to the company. Although the company's net profit slightly outperformed expectations last year, the report suggests that both net profit and dividends peaked in the previous year and are anticipated to decrease this year due to margin pressures on the coal-fired power generation business, driven by risks from lower market-based electricity prices and rising coal costs.

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