Balancing Decarbonisation Upside and Tariff Headwinds: Rationale for a Hold on China Resources Power

Patricia Yeung, an analyst from DBS, maintained the Hold rating on China Resources Power Holdings Co. The associated price target is HK$19.20.

Patricia Yeung has given his Hold rating due to a combination of factors related to both growth prospects and emerging headwinds. She acknowledges that China Resources Power is a key player in China’s decarbonisation push, steadily increasing its renewable portfolio and benefiting from more stable coal prices and a growing share of capacity-based revenue in thermal power.

At the same time, she anticipates notable pressure on electricity tariffs from 2026 onward as market-based pricing and expanding renewable supply weigh on average selling prices, leading her to trim earnings forecasts. Although the stock still offers mid-single-digit earnings growth and an attractive dividend yield above 6%, these positives are offset by tariff downside risks and potential fuel cost volatility, making a Hold stance more appropriate than a more aggressive rating.

According to TipRanks, Yeung is a 4-star analyst with an average return of 6.5% and a 61.82% success rate. Yeung covers the Utilities sector, focusing on stocks such as CK Infrastructure Holdings, China Resources Power Holdings Co, and HK Electric Investments & HK Electric Investments.