CGN Power (01816) fell more than 8 percent in the afternoon, and as of the press release, it fell 6.02 percent to HKD 3.28 with a turnover of HKD 0.42 billion.
According to the Wisdom Wealth App, CGN Power (01816) fell more than 8% in the afternoon, and as of the press release, it fell 6.02% to HKD 3.28 with a turnover of HKD 0.42 billion.
On the news front, CGN Power previously announced that the total generating capacity of its nuclear power units from January to June was about 113.378 billion kilowatt hours, a year-on-year increase of 0.08%. Citi mentioned that CGN Power's grid-connected power generation in the first half of this year only increased by 0.1% year-on-year, lower than expected, mainly due to a larger number of power outages during the period compared to the same period last year. Considering the significant reduction in power generation by its high-profit power plants, it is currently predicted that its net income in the mid-term may decline by about 5% year-on-year. The bank expects that the number of power outages in the second half of the year will decrease, and power generation will increase accordingly, which is expected to have little impact in the second half of the year.
In addition, CGN Power previously announced that it plans to issue A-share convertible corporate bonds to unspecified objects to raise funds not exceeding CNY 4.9 billion, which will be used for the construction of the 5th and 6th units of the Lufeng nuclear power plant in Guangdong. The expected internal rate of return on project capital is expected to reach 9%. Guotai Junan pointed out that the target project has considerable profit, and the issuance of convertible bonds can help alleviate the pressure on funds.