[ET Net News Agency, 22 August 2019] Citi Research lowered its target price for China
Resources Power (CRP)(00836) to HK$11.3 from HK$13 and maintained its "neutral" rating.
The research house said it prefers Huaneng (00902) and Huadian (01071) to CRP, among PRC
coal-fired IPPs, as they have higher net profit sensitivity to coal cost cut.
Citi said CRP's accelerated wind farm development would not re-rate the stock as its
2020 PBs are the same as major PRC wind farm operators, and CRP had negative free cash
flow in 1H and will remain in the same situation in 2H 2019-2020.
Citi raised its 2019-21 net profits by 18-20% due to lower unit fuel cost. (KL)