HUANENG POWER

Huaneng Power International (902.HK) opened low and rallied strongly, closing at HKD 6.080, up 5.01%, driven by HSBC Research highlighting that El Niño intensifies summer power demand pressure and supply volatility in Asia, drawing attention to power stocks. The stock hit an intraday low of HKD 5.800 in the morning session before recovering, and extended gains in the afternoon, trading within a range of HKD 5.800-6.080, with total turnover of approximately HKD 278 million and a turnover rate of 0.99%. The company reported a 0.37% YoY decline in Q1 2026 operating revenue to HKD 64.38 billion, net profit down 4.55% YoY to HKD 5.08 billion, with EPS of HKD 0.2834. The stock carries a dividend yield of 7.48%, a PE of 6.0x, and a PB of 1.2x, with a total market cap of about HKD 95.4 billion. While Morgan Stanley raised its target price from HKD 5.3 to HKD 6.1 with an Equalweight rating, Citi warns that rising coal costs will continue to squeeze margins for power stocks.