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<Research> JPM Upgrades CGN Power (01816.HK) to 'Overweight', Raises TP to HKD4.5
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JPMorgan's research report indicates that China's nuclear power industry is benefiting from an increasingly improved electricity pricing mechanism. Recent policy changes at both the central and local levels, including in Guangzhou, Liaoning, and Guangxi, are favorable for the industry's development. The global nuclear energy revival, combined with the scarcity of nuclear power assets and a more favorable regulatory environment, is driving the revaluation of CGN Power (01816.HK). The firm has upgraded CGN Power's rating from 'Neutral' to 'Overweight', with the target price significantly raised from HKD2.9 to HKD4.5. The firm noted that Liaoning Province has launched a one-year pilot Contract for Difference (CfD) mechanism for nuclear power this year. Guangxi has also introduced charges to end-users for nuclear power CfDs, indicating that its CfD policy will be announced soon. The firm assumes that CfDs will cover approximately 70% of nuclear power sales in the medium term, leading to an increase in the composite electricity price by 1.5% and 1% in 2026 and 2027, respectively. Consequently, the firm has raised its earnings forecasts for CGN Power for 2026 and 2027 by 5% to 8%. (hc/w) Auto-translated by third-party software This translation was auto-generated by third-party software. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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