Longyuan reported 1H24 earnings of Rmb3,985.9 (-20.8% yoy), below expectations. 1H24 power generation was flattish at 40,081,845MWh (+0.8% yoy), with wind power generation falling 4.6% yoy. Low wind speed (-0.25m/s yoy to 5.85m/s in 1H24) saw wind power utilisation hours being reduced to 1,170 hours (-101 hours). The average on-grid tariff declined to Rmb423/MWh (-Rmb34/MWh). The installed capacity expansion target for 2024 remains at 7,500MW. Downgrade to HOLD. Target price: HK$6.10.
KEY HIGHLIGHTS Results Baosteel (600019 CH/BUY/Rmb5.85/Target: Rmb7.90) Baosteel reported 1H24 earnings of Rmb4,554.6m (-0.2% yoy), representing 34% of our full-year estimate and below expectations. Steel products’ gross margin rose to 3.7% (+0.7ppt yoy). Differentiated products’ sales volume increased to Rmb15.09m (+17.2% yoy), remaining as the key earnings contributor during the industry downcycle. Steel products’ export volume grew to 3.05m (+2% yoy), on track to achieve the annual target...
GREATER CHINA Results BYD Electronic (285 HK/BUY/HK$27.65/Target: HK$42.50) 1H24: Results missed on margins. Expect peak season to bolster profitability in 2H24. China Feihe (6186 HK/BUY/HK$4.04/Target: HK$5.22) 1H24: Steady profit growth; accelerated revenue expansion in 2H24. China Longyuan Power (916 HK/HOLD/HK$6.16/Target: HK$6.10) 1H24: Below expectations; power generation dragged by low wind speed. ...
China Longyuan Power reported 1Q24 earnings of Rmb2,481.7m (+2.6% yoy), below expectations. Wind power generation was up by merely 1.4% yoy although installed capacity was 6.1% higher yoy. Lower wind power utilisation hours at 640 hours (-14 hours yoy) were the key reason, due to a 0.1m/s lower wind speed and higher curtailment rate of 4.22%. The ratio of market power sales rose to 42.1% (1Q23: 40.8%). Average wind power tariff was Rmb0.4437/kWh. Maintain BUY. Target price: HK$6.40.
KEY HIGHLIGHTS Sector Automobile We raise 2024 forecasts on China’s PV sales growth and PEV sales growth from +8%/+21% to +10%/+24% on bigger-than-expected subsidies for the cash-for-clunker program and zero downpayment auto loans. Meanwhile, we lift the target prices of BYD, Geely, GWM, GAC and Yadea to HK$160.00/HK$13.00/HK$13.50/HK$3.30 /HK$20.00 respectively. Upgrade GWM from HOLD to BUY, and upgrade GAC from SELL to HOLD. Top BUY: CATL, Geely and Yadea. Top SELL: BYD, Li Auto and XPeng. ...
GREATER CHINA Results China Longyuan Power (916 HK/BUY/HK$5.72/Target: HK$6.40): 1Q24: Below expectations; low wind speed weighed on performance. COSCO SHIPPING Ports (1199 HK/BUY/HK$4.62/Target: HK$6.75): 1Q24: Results in line; steady performance in a seasonally slow quarter with headwinds. Dian Diagnostics (300244 CH/BUY/Rmb14.13/Target: Rmb18.50): 1Q24: ICL revenue growth satisfactory; esoteric testing and self-developed product segments remain 2024’s key growth drivers. Foshan Haitian Flavou...
Longyuan reported 2023 earnings of Rmb6,200.4m (+26.5% yoy), below expectations. Revenue declined 5.6% yoy to Rmb37,638.4m, dragged by a 4.9%/23.6% decline in wind/photovoltaic power tariffs and slow capacity expansion. Adjusted EBITDA margin expanded by 4.5ppt to 62.3%, supported by an improvement in wind power utilisation to 2,346 hours (+50 hours). Renewable subsidies collected in 2023 slowed to Rmb6.3b (- 70% yoy). Maintain BUY. Target price: HK$6.50.
KEY HIGHLIGHTS Economics PMI First expansion in six months. Sector Aviation Airlines: Expecting a turnaround in profitability in 2024 with moderate international travel recovery. Maintain MARKET WEIGHT. Macau Gaming Mar 24 GGR up 6% mom; May 24 Golden Week a potential catalyst. Results China Feihe (6186 HK/BUY/HK$3.68/Target: HK$4.43) 2023: Results in line; healthy channel inventory and improved operating efficiency to drive growth. Upgrade to BUY. China Longyuan Power (916 HK/BUY/HK$5.4...
GREATER CHINA Sector Aviation Airlines: Expecting a turnaround in profitability in 2024 with moderate international travel recovery. Maintain MARKET WEIGHT. Results China Longyuan Power (916 HK/BUY/HK$5.48/Target: HK$6.50) 2023: Below expectations; slower-than-expected pace of capacity expansion. China Overseas Land & Investment (688 HK/BUY/HK$11.26/Target: HK$19.42) 2023: Results beat expectations; watching for stabilisation of profitability in 2024. China Resources Gas (1193 HK/BUY/HK$24.9...
The independent financial analyst theScreener just upgraded the general evaluation of CHINA LONGYUAN POWER (HK), a company active in the Alternative Electricity industry. As regards its fundamental valuation, the title confirms its rating of 2 out of 4 stars while its market behaviour remains as risky. theScreener believes, however, that a more enabling environment allows the title to increase its general evaluation to Neutral. As of the analysis date February 11, 2022, the closing price was HKD...
Pick-up in AR days dents valuation Price target cut to HKD6.30 (from HKD7.11) to reflect the company’s increased account receivable (AR) days. In our view, the company’s AR days will likely be maintained at the current level for the remainder of 2017, in light of the continuously increasing on-grid generation. Without changing forecasts, we will maintain our Buy rating on Longyuan as we are waiting for the government to announce feasible measures (e.g.: details of Green Certification) fo...
Hong Kong, December 23, 2016-- Moody's Investors Service has upgraded China Longyuan Power Group Corporation Ltd.' s issuer rating to A3 from Baa1. The outlook for the rating remains stable. "The rating upgrade reflects our view that structural subordination risk is mitigated by the high level of parental support to Longyuan directly as the holding company in a financially distressed situation, thereby the position of improving holding company creditors over operating...
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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