CICC: Lower CR Power's target price to HK$25.02, and lower earnings forecast per share for this year and next year.

Jinshi data news on October 25th, CICC published a research report, stating that China Resources Power (00836.HK) announced the issuance of 366 million new shares to third-party investors and its parent company, raising approximately HK$7.2 billion. Management stated that the new share financing is mainly to optimize the company’s capital structure. The bank stated that the current new share financing is able to cover most of the capital expenditure from 2024 to 2025, and the company’s Hong Kong stock platform is unlikely to conduct additional equity financing in the next one to two years. At the same time, the parent company’s new stock subscription accounts for 46% of the total financing, fully demonstrating confidence and support for the company. The bank pointed out that due to the dilution after the new share issuance, the earnings per share forecast for this year and next year are reduced by 6.5% and 6.4% respectively, and the target price is reduced to HK$25.02, maintaining a “buy” rating.