[ET Net News Agency, 12 July 2019] Citi Research lifted its target price for CGN Power
(01816) to HK$1.8 from HK$1.7 and maintained its "sell" rating for low (2.9%) 2019-21 EPS
CAGR.
The research house forecast CGN's net profit to +10% to Rmb4.81bn in 1H, taking into
account (1) on-grid generation growth of 12% to 79.95M MWH, (2) one-off gain arose from
3ppts VAT cut from 16% to 13% on 1 April 2019, (3) the Rmb300m VAT rebate from Ling'ao and
Lingdong nuclear plants expected in 1Q being collected and booked in 2Q; and (4) narrowed
tariff discount of direct power sales (DPS). (KL)