China Power International's generation declined 9% to 15.1b kWh in 2Q15

Hydro power also declined 13% y/y.

China Power International Development Ltd.'s (CPI) total net generation at 15.1bn kWh in 2Q15 declined 9% y/y.

According to a research note from Barclays, however, within the blended generation, hydro power reported a 13% y/y decline in 2Q15, which is seasonally the peak season for hydro power.

This compares with an increase of 47% y/y in 1Q15 in hydro power generation. Coal-fired power generation continued to be weak, declining 7% y/y in 2Q15.

Here's more from Barclays:

Marking to market the value of its Shanghai Electric Power stake: The share price of Shanghai Electric Power has declined by c40% from its peak, which is in line with the fall of c30% in benchmark SHCOMP index from its peak.

We mark our estimates to market for its 17% stake, leading to a decline in our valuation for CPI. Therefore, we lower our price target for the stock to HK$7 from HK$7.50 earlier.

Further sell-down of the Shanghai Electric Power stake makes sense even at current prices: With the benefit of hindsight, CPI's decision to sell part of its stake in Shanghai Electric Power a couple of months ago appears smart.

The mark-to-market value for the remaining stake is RMB7.3bn, which is equal to HK$1.30/share for CPI. Selling the stake would not only de-gear the balance sheet, it could boost its earnings from lower interest costs as well as provide potential book value gains on the sale of investments.