[ET Net News Agency, 23 November 2018] J.P. Morgan stays constructive on China
coal-fired power producers going into 2019. It believes that IPPs will benefit from weaker
coal prices amid record-high coal inventory days and slower industrial output growth.
The research house expects IPPs' ROE to return to 8% next year, versus 3% in 2017. With
free cash flow yield of 16% and a dividend yield of 7.5%, IPPs provide good defensive
protection against a potential slowdown in industrial activity as that would further drive
coal prices lower.
JPM revised its ratings and target prices for the IPPs it covers as follows:
Name Rating Target Price
---------------------------------------------------------
Huaneng Power (00902) Overweight HK$6.00 from HK$6.30
Datang Power (00991) Neutral HK$2.00 from HK$2.30
Huadian Power (01071) Neutral HK$3.30 from HK$3.50
CR Power (00836) Overweight HK$17.2 from HK$16.6
China Power (02380) Overweight HK$2.30 from HK$2.20
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
02380 CHINA POWER
Nominal 
3.170 -0.010 (-0.314%) Others
23/11/2018 17:48
[I-bank focus]China IPPs to benefit from weaker coal prices
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