[ET Net News Agency, 19 October 2018] Citi Research lowered its target price for CGN
Power (01816) to HK$1.6 from HK$2, and maintained its "sell" rating due to low revenue
profit growth, high return rise of 3G Taishan nuclear plant and more tariff-cut risk from
competitive sales in Guangdong.
The research house cut its CGN Power 2018-20 net profits forecasts by 1-5% mainly due to
lower revenue from Guangdong and more other operating costs.
Guangdong provincial government aims to rise provincial electricity sales there at
market-based tariffs to 60% by 2020. Citi expects CGN's nuclear unit to have much of its
sales mix on competitive tariffs ahead to lead to tariff cut. Every 1% tariff cut of its
Guangdong plants would trim Rmb184.3m or 2.1% off Citi's base case 2019 net profit. (KL)
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01816 CGN POWER
Nominal 
2.700 +0.090 (+3.448%) Others
19/10/2018 17:40
[I-bank focus]Citi lowers CGN Power (01816) to HK$1.6
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