JPMorgan has issued a research report maintaining its "Neutral" rating on China Resources Power (00836) with a target price of HKD 17. The company's first-half performance this year exceeded expectations, with thermal power business earnings growing 16% year-on-year. This robust showing came despite lower electricity prices during the period and rising fuel costs since April, with the bank believing that contributions from coal production and capacity tariff payments provided earnings support.

During the period, the interim dividend was HKD 32.1 cents per share, with the payout ratio increasing from 23.4% in the same period last year to 25%, delivering a positive surprise. The JPMorgan report indicated that core earnings from the thermal power segment grew 16% year-on-year to HKD 3.1 billion. Even after excluding the contribution from coal production, pure thermal power earnings stood at approximately HKD 2.8 billion, remaining broadly flat year-on-year and surpassing the bank's expectations.

During the period, thermal power tariffs declined 7% year-on-year while unit fuel costs remained largely unchanged, with the bank believing that higher capacity tariff payments provided support. In contrast, core earnings from renewable energy fell over 30% year-on-year to HKD 3.9 billion, primarily due to lower wind and solar power tariffs, as well as reduced wind power utilization hours.

On the financial front, the company's net debt-to-total equity ratio decreased from 151% at the end of 2025 to 116% in the first half of this year, which the bank attributes to the listing and fundraising of China Resources New Energy (001248.SZ). JPMorgan expects the market to make upward revisions to earnings forecasts for China Resources Power for 2026-2027 and believes the share price will react positively to these strong interim results.