Bank of America Securities has issued a research report lowering its profit forecasts for Huaneng Power International (00902) by an average of 21% for 2026-2027, citing declining electricity prices and rising fuel costs. The target price for the H-shares has been reduced from HK$5.5 to HK$5. For the A-shares (600011.SH), the target price has been lowered from RMB 6.9 to RMB 6.3, based on a forecast price-to-book ratio of 0.95 times, corresponding to a projected return on equity of 7.5% for 2027. The firm maintained its "underperform" rating for both the H-shares and A-shares, believing that falling electricity prices and increasing fuel costs will weigh on this year's earnings. The report noted that Huaneng Power's management holds a pessimistic view on the electricity price outlook, targeting a decline of less than RMB 0.03 per kilowatt-hour for 2026, a goal already achieved in the first two months of this year, supported by auxiliary services and spot market transactions. The company expects coal consumption in 2026 to be similar to 2025 levels, with one-third sourced from imports. Although import prices have risen, management believes stable domestic supply and demand conditions do not support an increase in coal prices.