This is a company report on China Resources Power (00836 HK) by Equity Research. The report initiates coverage with a "Buy" rating and a target price of HK$19.54, based on forecasted EPS of HK$1.31/ HK$2.27/ HK$2.69 for 2022-2024, driven by the company's green transformation. The report argues that the market is conservative about CRP's growth prospects due to its loss-making thermal exposure, but the author is optimistic about the company's potential for a cash cow in its thermal business and a competitive edge in securing new renewables projects. The report also addresses concerns about a potential spin-off of the renewables business, arguing that existing shareholders would not be worse off.
