CGN Power (01816) reported first-quarter financial results that matched expectations, with revenue reaching RMB 16.3 billion, a decline of 13.3% year-on-year, and net profit of RMB 2.74 billion, down 9.3% year-on-year. Earnings projections for the current and next fiscal year remain unchanged. The company has maintained its "Outperform Industry" rating. Considering that mechanism-based electricity pricing policies enhance the predictability of nuclear power profitability, the target price for both its A-shares and H-shares has been raised by 5%, to RMB 5.32 and HK$4.19 respectively. A recovery trend in electricity prices in Southern China is beginning to emerge. The comprehensive electricity price in Guangdong reached RMB 483 per megawatt-hour in May, increasing 28% year-on-year and 30% month-on-month. Spot electricity prices in the Southern region also rose at the end of March. It is believed that early summer conditions in Southern China boosting demand, coupled with rising fuel costs for thermal power amid geopolitical tensions, may positively influence market electricity prices and profitability for nuclear power during the peak summer season.