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大行评级|花旗:龙源电力获母企注资正面 提升每股负债比率影响温和

Citigroup rating: China Longyuan received positive capital injection from its parent company, with a mild impact on its debt-to-equity ratio per share.

Gelonghui Finance ·  Jul 3 14:10
On July 3, GeLongHui reported that China Longyuan Power had recently announced that it had injected some new energy assets from its parent company, State Energy Group. It is expected that the new energy installed capacity will be about 4 million kilowatts. Citigroup said that although the details of the transaction have not yet been announced, it believes that this may be beneficial to Longyuan Power because it will increase the company's comprehensive operational capacity by 9.3% by the end of this year. In addition, the bank predicts that the acquisition may increase Longyuan's net debt-to-equity ratio by 5.5 to 6.6 percentage points, reaching 154.2 to 155.3%, which seems to be controllable and have a mild impact on boosting the debt-to-equity ratio. Citigroup said the main risks of the stock include the possibility of weak performance in the second quarter due to low wind speeds in April and May, as well as lower electricity prices due to market competition. Citigroup rates the stock as "buy" with a target price of HKD 9.6.

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