The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.
0530 GMT - China Resources Power is likely to face headwinds from tight coal supply, say DBS Group Research analysts in a note. Coal supply in 1H tightened with prices trending higher amid geopolitical uncertainty, they note. Domestic mine incidents also triggered stricter inspections and constrained local coal output, they add. The analysts expect coal-fired assets to transition toward flexible-adjustment resources, as capacity payments and ancillary services diversify revenue streams and enhance CR Power's long-term operational resilience. However, they flag that near-term earnings would remain weak due to coal cost pressure and lower power prices. DBS maintains its hold rating and target price of 19.20 Hong Kong dollars. Shares are down 1.5% at HK$18.48.