[ET Net News Agency, 17 September 2018] Credit Suisse lifted its target price for
Huaneng Power International (00902) to HK$6.5 from HK$4.4, and upgraded its rating to
"outperform" from "underperform" as its risk-reward is turning attractive.
The research house lifted its FY2019-20 EPS estimates 12-17% for HNP on lower average
coal cost assumptions.
Credit Suisse expects that coal price to weaken further to Rmb580/t in 2019 (versus
Rmb610/t assumed before). Its latest forecasts for unit fuel costs are for 2%/7% declines
for FY2018/19 versus 5%/3% previously. Despite minor tariff pressure (widening of direct
supply tariff discounts), it believes the earnings impact is net-net positive.
Driven by strong power demand, HNP recorded 12% output growth in 1H. Credit Suisse
revised up its FY2018 utilisation hours forecast slightly from 2% growth to 3%. (KL)
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00902 HUANENG POWER
Nominal 
4.210 -0.040 (-0.941%) Others
17/09/2018 10:41
[I-bank focus]CS upgrades Huaneng Power (00902) to HK$6.5
| Remark: | Real time quote last updated: 20/09/2024 12:59 |
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