Huaneng Power International Jumped on Better than expected Result

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By :  ,  Financial Analyst

Huaneng Power International (902.HK) Jumped on Better-than-expected Result

Huaneng Power International (902), an energy group, posted 1H net income jumped 58.1% on year to 5.44 billion yuan on revenue of 79.13 billion yuan, down 5.4%. The stock prices jumped 10% after the earning announcement yesterday.

Citibank said the increase of net income thanks to lower on-grid tariff in China and unit fuel costs, more than offsetting lower power plant utilization.

Today, the stock prices hold the gain, even the Hang Seng Index slumps 2%. It would suggest that the buying interest of investors remains.

From a technical point of view, the stock accelerated to the upside and broke above the upper boundary of the bullish channel, suggesting a further upside acceleration signal. 

The relative strength index is above its overbought level at 70, but has not displayed any reversal signal.

Bullish readers could set the support level at HK$3.41 (38.2% retracement level), while resistance levels would be located at HK$4.12(previous high) and HK$4.64 (127.2% expansion).

Source: GAIN Capital, TradingView
Related tags: Earnings Equities Stocks China

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