CR Power (836 HK): Profit And Sector Dip Clouds Clean Energy Spin-Off

• On the 15th May 2026, the CSRC approved SOE-backed power play China Resources Power (836 HK)‘s A-share listing of its renewable energy unit, China Resources New Energy Group (CRNE).

• CRNE’s prospectus has now been lodged, with a tentative listing late June/early July.

• CRNE’s 1Q26 profit was down 28%, with a forecast drop of at least 19% in 1H26E. CRNE’s peer basket is down 21% in the past month. CRP is down 6%.

The Trade:

• Forward guidance for CRNE is not optimum.

• There’s still material upside here; however, what holding company discount is applicable?

• Amid the Mideast conflict, CRP/CRNE - and the peer basket - are not offering the valuation arbitrage I previously anticipated.

I’m still bullish here. CRP’s metrics are not demanding versus peers. But my conviction has been tempered.