The Zhitong Finance App learned that Longyuan Electric Power (00916) rose by more than 5%. As of press release, it had risen 5.49% to HK$7.11, with a turnover of HK$265 million.

According to the news, the National Energy Administration released national electricity industry statistics for January-April. By the end of April, the country's cumulative installed power generation capacity was about 3.01 billion kilowatts, an increase of 14.1% over the previous year. Among them, the installed capacity of solar power generation increased by 52.4% year on year; the installed capacity of wind power increased by 20.6% year on year. Citi released a research report saying that Longyuan's target price was raised by 31.1%, from HK$6.1 to HK$8, and its capital expenditure forecast for 2024 was lowered by 7% to $28 billion to reflect that the market prices for solar modules and wind turbines have dropped by 10 to 11% and more than 5%, respectively, so far this year, improving cash flow with less capital expenditure.

According to the bank, the average wind power price in Longyuan fell 5.6% year on year due to an increase in the market-based electricity price sales mix and more capacity combinations for affordable electricity generation. The further reduction in tariffs is expected to be limited this year, as annual sales tariffs have already been fixed; according to historical wind speed trends, its sales mix from North China is generally lower in the second to third quarter. As a result, the company believes that the average renewable energy price in 2024 will be similar to the first quarter.