Bank of America Securities issued a report stating that Huadian Power's short-term profits are still under upward pressure from coal prices, reaffirming the “outperforming market” rating. The target price for H shares was raised from HK$3.5 to HK$3.7, and the target price for A-shares was raised from $4.1 to $4.3 to reflect better-than-expected electricity price levels, lower financing costs, and increased carbon trading revenue. The improvement in electricity prices in the second quarter was mainly driven by the rise in spot and monthly electricity prices along with coal prices, and the distribution of revenue from capacity electricity prices to lower power generation. Shandong is still the most mature electricity market in the mainland, and electricity prices are closely linked to spot prices, which helps to transfer fuel costs. The bank raised its 2026-2028 profit forecast by an average of about 20%. The main assumptions include a year-on-year flat electricity price in 2026, 2.3% debt costs, and 1 billion yuan in non-operating income.

Bank of America Securities issued a report stating that Huadian Power's short-term profits are still under upward pressure from coal prices, reaffirming the “outperforming market” rating. The target price for H shares was raised from HK$3.5 to HK$3.7, and the target price for A-shares was raised from $4.1 to $4.3 to reflect better-than-expected electricity price levels, lower financing costs, and increased carbon trading revenue. The improvement in electricity prices in the second quarter was mainly driven by the rise in spot and monthly electricity prices along with coal prices, and the distribution of revenue from capacity electricity prices to lower power generation. Shandong is still the most mature electricity market in the mainland, and electricity prices are closely linked to spot prices, which helps to transfer fuel costs. The bank raised its 2026-2028 profit forecast by an average of about 20%. The main assumptions include a year-on-year flat electricity price in 2026, 2.3% debt costs, and 1 billion yuan in non-operating income.