Changes to our ratings/target prices/earnings estimates 2
2012 power demand growth may fall to 9% yoy from 12% in 2011 3
Three key reasons why spot coal price may see further weakness 5
We expect government stance towards IPPs to be more favorable 8
Key assumptions: Higher tariffs/unit coal costs; lower utilization 9
Upgrade Huaneng to Buy from Neutral on coal sensitivity and FCF 10
Downgrade CPI to Neutral from Buy mainly on fair valuation 11
Reiterate Buy on CRP, Neutral on Datang and Huadian 11
Valuation: Average 10X 2012E P/E is 35% below historical average 12
China Power capacity forecast, 2007-2015E 15
Company summary financials for IPPs 16
Disclosure Appendix 21