China Resources Power achieved a significant expansion of its renewable energy capacity last year by adding 11.6GW. This year, the company aims to further bolster its portfolio with an additional 10GW of renewable energy and 6GW of thermal power installed capacity. However, owing to slower-than-anticipated growth in power generation during the first half of the year, the company has revised its power generation growth forecast downwards for both this year and next, now projecting a range of 4%-9%. Consequently, its earnings forecast has also been adjusted downwards by approximately 4%. On a positive note, the anticipated decline in coal prices is expected to lead to an 8% reduction in fuel costs, which in turn is anticipated to boost the operating profit margin. Despite these adjustments, DBS maintains its 'Buy' rating for China Resources Power but has revised its target price to HK$22.6.