The Zhitong Finance App learned that Bank of America Securities released a research report stating that it maintained the “neutral” rating of Longyuan Electric Power (00916). Based on last year's performance, the earnings forecast per share for this year and next two years was lowered by 1 cent to 1.05 yuan and 1.4 yuan respectively. At the same time, the wind power price forecast was lowered to 4% to 5%, and the target price was reduced from HK$7.5 to HK$6.1.

According to the report, the company's net profit last year was 6.4 billion yuan, 8% lower than the bank's forecast, mainly due to higher other operating expenses, or depreciation. This performance means that the company's net profit dropped sharply from 1.1 billion yuan in the third quarter of last year to 141 million yuan in the fourth quarter of last year. Without a one-time subsidy like in 2022, the company's free cash flow recovered to minus 10 billion yuan last year, dragging down the company's cash balance to 4.5 billion yuan.