Daiwa has issued a research report maintaining its 'Hold' rating on CHINA RES POWER (00836). The firm views the spin-off listing as a positive development, though it notes the market had largely anticipated the move. Daiwa expects future investor focus to shift towards electricity price trends and earnings visibility.

The subsidiary, China Resources New Energy Holdings Company Limited, has completed the pricing for its A-share initial public offering. The shares are priced at 10.11 yuan each, with 2.107 billion new shares to be issued, representing 16.2% of the enlarged share capital. The offering is set to raise approximately 21.3 billion yuan.

The IPO valuation corresponds to a price-to-book ratio of 1.21 times. This is higher than the current P/B ratio of 0.87 times for CHINA RES POWER's H-shares. The move is anticipated to unlock value of around 31 billion yuan, which equates to roughly 5.4 yuan or 5.9 Hong Kong dollars per share.