＜Research＞Daiwa: HUANENG POWER (00902.HK) 2Q NP Plummets 30%, Below Forecasts

　　Daiwa covered in a report HUANENG POWER (00902.HK) -0.340 (-6.939%) Short selling $49.46M; Ratio 37.686% 's net profit for 2Q crumpled 30% YoY to RMB2.858 billion, missing market expectations. The broker attributed the weak performance to a weak renewable energy business, with unit earnings from wind and solar power plunging 24% YoY to RMB0.183 per kilowatt hour (kWh) and RMB0.176 per kWh respectively in the period.

　　Daiwa believed concerns are emerging that rising renewable energy prices and curtailment problems will weigh on the independent power producers' earnings growth. The broker also sees HUANENG's results as a drag on CHINA LONGYUAN (00916.HK) -0.130 (-1.821%) Short selling $63.84M; Ratio 26.583% and DATANG RENEW (01798.HK) -0.030 (-1.389%) Short selling $7.85M; Ratio 26.548% , especially against the backdrop of a recent rebound in their share prices. With the latter 2 companies due to announce results in August, the broker expected a pullback in share prices to be on the way.

　　Related NewsJPM Downgrades CGN POWER (01816.HK) to Neutral, Raises CHINA LONGYUAN (00916.HK) TP to $8.1

　　Daiwa recently downgraded its rating on HUANENG from Buy to Hold.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-30 16:25.)

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