Yamato: China Resources Power Co., Ltd (00836.HK) has made progress in splitting its new energy business, which is a positive catalyst.

According to the Wise Finance APP, Daiwa Securities released a research report stating that China Resources Power (00836.HK) recently announced the details of its plan to list its new energy subsidiary China Resources New Energy Holdings on the A-share market of the Shenzhen Stock Exchange. China Resources New Energy plans to issue 2.107 billion new shares, accounting for 16.2% to 18.19% of the enlarged share capital, with the proceeds mainly used for new energy project development. Daiwa pointed out that this is a new development since the first announcement of the spin-off plan in March 2023. It is expected that after the spin-off, China Resources New Energy will continue to be a subsidiary of China Resources Power, with China Resources Power's stake dropping from 100% to approximately 83.8%, and its performance will continue to be consolidated into the parent company's financial statements. The bank believes that the IPO progress is a positive catalyst, but the market has already anticipated it to some extent, and the focus has shifted to the trend of electricity prices and profit visibility. Therefore, the bank maintains a "hold" rating.