HSBC Global Research lifted its target price for Huaneng Renewables (HNR)(00958) to HK$3.15 from HK$2.9 but downgraded its rating to "hold" from "buy".
HNR's wind power generation during September slowed down at -11%, following a strong August (+14%). The research house thinks the slowdown was mainly driven by weaker wind resources, which were down 7% in mainland China on an average.
On 2 September, HNR announced that it has received a privatisation offer from its parent - China Huaneng Group - at HK$3.17 per share.
HSBC said the proposed offer price to represent a PB of 1.0x (current: 0.9x). As HNR said it is unable to raise new equity as its PB is below 1.0x, as per State-Owned Assets Supervision and Administration Commission of the State Council (SASAC) regulation, hence, HSBC believes the privatisation will allow the parent to consolidate and incubate all of its wind assets efficiently.
全新節目《說說心理話》青少年不可以戀愛！？真實個案講述驚心動魄經歷► 即睇
