[ET Net News Agency, 1 August 2019] HSBC Global Research lifted its target price for
Huaneng Power (HNP)(00902) to HK$5.1 from HK$5 and maintained its "hold" rating.
The research house said HNP reported a decent 1H net profit of RMB3,442m. Stripping out
dividends to perpetual bonds, net profit attributable to ordinary shareholders was
RMB3,169m, in line with HSBC's estimate of RMB3,116m.
HNP expects the falling coal price so far this year to continue in 2H and has lowered
its full-year coal price guidance from -4% to -7%. HSBC lifted its earnings estimates by
4-7% for 2019-21 to factor in stronger overseas operations and the contribution from
associates/JVs. (KL)