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Citi cuts Datang Power (00991) to HK$2.6
 Citi Research cut its target price for Datang 
Power International (00991) to HK$2.6 from HK$2.9, and reiterated its "neutral" rating.
  The research house said Datang's 2017 net profit between Rmb1,280-1,750m is 30-49% below
consensus, dragged by high coal price and tariff cut from direct power sales.
  In addition, its proposed parental asset injection looks expensive at 1.5x end 9-month 
2017 PB and those assets were loss making in the period.
  Howver, on the positive side (1) it would resume dividend payment from 2018, (2) its 
power output was +21% yoy in 4Q 2017 for strong demand and (3) its 7.3x 2018 PE and 0.6x 
PB for H-share look fair.
  Citi trimmed its 2017-19 net profits by 14-40% factoring in higher coal price and lower
tariff.

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