Glonghui, May 27 | Morgan Stanley released a report stating that the current valuation of Longyuan Electric Power's H shares is equivalent to 0.75 times 2024 and 0.69 times the market account ratio in 2025. The return on equity is 10 to 11%, so it has been upgraded to an “increase in holdings” rating, with a target price of HK$9.7. The bank anticipates that the wind turbine upgrade may bring better returns. Longyuan will overhaul and upgrade the 350 MW old wind power projects in 2022 and 1.23 gigawatt wind turbines in 2023. All of these projects will be completed in 2025. According to Longyuan, after the upgrade is completed, the installed capacity will increase by 1 to 3 times, and the number of hours used can be increased by 30 to 50%, because these old projects are usually located in regions with the best wind resources. The bank expects the internal rate of return for wind power projects to increase by more than 1.5%.
大行评级｜大摩：上调龙源电力评级至“增持”评级 风力涡轮升级或带来更好回报
Big Bank Rating | Damo: Upgrading Longyuan Electric Power Rating to “Overweight” Rating Wind Turbine Upgrades May Bring Better Returns
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