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| HSI1 | 25,652.97 | 0.00 | -- |
| HSCEI1 | 8,533.84 | 0.00 | -- |
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2026-08-26 14:30:18 JPM released a report stating that CHINA RES POWER (00836.HK)'s results for 1H26 beat expectations. Profit from the thermal power business rose 16% YoY, showing strong performance despite lower electricity tariffs during the period and rising fuel costs since April. The broker believes earnings support came from coal production and capacity tariff contributions. Interim dividend during the period was HKD0.321 per share, with the payout ratio increasing from 23.4% in the same period last year to 25%, delivering a positive surprise. The report noted that core earnings from the thermal power segment increased 16% YoY to HKD3.1 billion. Even excluding contributions from coal production, pure thermal power earnings were about HKD2.8 billion, broadly flat YoY and better than the broker's expectations. Thermal power tariffs during the period fell 7% YoY, while unit fuel costs were broadly stable, with higher capacity tariffs believed to have provided support. Core earnings from renewable energy declined more than 30% YoY to HKD3.9 billion, mainly due to lower wind and solar power tariffs, as well as reduced wind power utilization hours. On the financial front, the net debt-to-equity ratio declined from 151% at the end of 2025 to 116% in 1H26, which the broker believes was related to fundraising from the listing of CHINA RESOURCES NEW ENERGY (001248.SZ). JPM expects the market to revise upward earnings forecasts for CHINA RES POWER (00836.HK) for 2026-2027, and believes the stock price will react positively to the strong interim results. Rating was maintained at "Neutral" with a TP of HKD17. (ad/j)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. 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. | |