Bank of America Securities makes a conservative forecast of the average coal price for 2024, which is estimated to be RMB 850 per ton.
The Zhitong Finance App learned that Bank of America Securities released a research report saying that maintaining the “buy” rating of Huaneng International Power (00902), it is expected that thermal power generation profits will recover further in the future. Results for the previous quarter are expected to be steady, with net revenue rising 43% year over year to RMB 3.2 billion, with a profit estimate of RMB 0.2 per share, and the target price raised from HK$5.2 to HK$5.6.
Investors are concerned about renewable energy capital expenditure, but believe the group can still pay dividends even if free cash flow is negative, according to the report. The company's management promised to pay a dividend of more than 50% and will not pay an interim dividend. The bank makes a conservative forecast of the average coal price for 2024, which is estimated to be 850 yuan per ton. The bank also anticipates that profits from overseas operations can be normalized to the level of the first quarter of 2022.