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BofAS Adds CHINA POWER (02380.HK) TP to $3.5, Reiterates Rating at Neutral
2025-12-18 16:02:23
BofA Securities added its target price for CHINA POWER (02380.HK) from $3.1 to $3.5, with rating reiterated at Neutral. The broker also lowered its 2025-2027 earnings forecasts for the Company an average of 2%, reflecting lower-than-expected power tariff, but predicted that 2025 earnings will remain broadly stable YoY.

BofA Securities visited the Jiangsu Changshu power plant, in which CHINA POWER holds a 50% stake. The management expected the annual contract power tariff in Jiangsu Province to decrease by RMB5-6 cents next year, mainly due to lower coal prices and higher capacity tariff.

The power plant plans to reduce the proportion of annual contract from 76% to 50%, and increase spot market trading volume, believing that its locational advantage can secure better tariffs in the spot market.
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