HALISTER1: CR Power and Huaneng are the Top China Power Buys at Jefferies

CR Power and Huaneng are the Top China Power Buys at Jefferies

(Bloomberg) -- Jefferies is positive on China’s power sector as the government reins in new projects and consolidates the industry, which should materially improve margins and free cash flow, analysts including Edison Lee write in note initiating coverage.
  • “Strong signals” that China will consolidate nine independent power firms into three or four and put them under mixed ownership reform
  • High coal prices are temporary and set to fall as state steps in
  • China Resources Power PT at HK$20.71, the highest tracked by Bloomberg; Huaneng Power H-shares PT at HK$6.89
  • Initiates CGN Power with buy rating; Huadian Power H- shares with hold rating; Datang International H-shares, China Power International with underperform, according to data compiled by Bloomberg
To contact Bloomberg News staff for this story: Ryan Lovdahl in Shanghai at rlovdahl@bloomberg.net To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net Will Davies

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2380 HK (China Power International Development Ltd)
1816 HK (CGN Power Co Ltd)
600027 CH (Huadian Power International Corp Ltd)
902 HK (Huaneng Power International Inc)
836 HK (China Resources Power Holdings Co Ltd)

People
Edison Lee (Jefferies Hong Kong Ltd)

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