Citi has added HUANENG POWER to its 30-day downside catalyst watchlist due to concerns that the company's market base electricity price for 2026 is expected to fall below market expectations. The report indicates that the weighted average market base tariff in key provinces where HUANENG POWER sells electricity is projected to decrease by 13.4% year-over-year in 2026. Additionally, the average coal electricity tariff for HUANENG POWER is estimated to drop by 8.9% year-over-year, coinciding with a significant increase in electricity production capacity from coal power plants in China. Despite these concerns, HUANENG POWER has been assigned a target price of HKD7.2 and a Buy rating, suggesting that Citi sees potential for recovery or value in the stock despite the anticipated declines in tariffs.
