＜Research＞UBS Raises TPs for CN Power Stocks, Citing Strong Industry Fundamentals

　　UBS commented in a report that the fundamentals of the Mainland power sector are strong, and raises its target price for stocks in the sector. The broker's top picks include CGN POWER (01816.HK) +0.010 (+0.285%) Short selling $16.39M; Ratio 12.255% , CNNC (601985.SH) -0.040 (-0.366%) , CHINA RES POWER (00836.HK) -0.300 (-1.200%) Short selling $9.03M; Ratio 7.179% and YANGTZE POWER (600900.SH) -0.070 (-0.238%) .

　　According to the report, although Chinese power stocks have rallied strongly by 33% to 78% since the beginning of the year, they remain bullish as strong fundamentals, including structural power demand growth and potential residential tariff hikes, are only partially reflected in share prices now.

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　　UBS raised its power demand growth assumptions between 2024 and 2026 from 5.2% to 7.5%, compared to market expectations of 7%. This, coupled with revaluation, is expected to further boost the share price of Mainland power stocks. Potential power reforms, which could include higher residential electricity prices, are additional key drivers for such a boost.

　　Stock | Rating | Target Price (HKD)

　　CGN POWER (01816.HK) +0.010 (+0.285%) Short selling $16.39M; Ratio 12.255% | Buy | $3.9 -> $4.6

　　CHINA RES POWER (00836.HK) -0.300 (-1.200%) Short selling $9.03M; Ratio 7.179% | Buy | $25 -> $31

　　CHINA POWER (02380.HK) -0.080 (-1.887%) Short selling $1.63M; Ratio 3.038% | Neutral -> Buy | $3.1 -> $5.1

　　CHINA LONGYUAN (00916.HK) -0.140 (-1.806%) Short selling $12.31M; Ratio 8.534% | Neutral | $5.9 -> $8.5

　　XINYI ENERGY (03868.HK) -0.010 (-0.980%) Short selling $161.60K; Ratio 8.776% | Neutral | $1.2 -> $1.1

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　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-05 12:25.) (A Shares quote is delayed for at least 15 mins.)

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