Bank of Communications International released a research report stating that China Longyuan (00916.HK) was selected by its controlling shareholder, State Energy Group, to inject 4GW qualified renewable energy assets in batches. This move indicates that, despite unfavorable market conditions, its parent company is still committed to integrating its renewable resources and reducing horizontal competition within the group. While confirming the injection of assets, Longyuan proposed to sell 27% of its equity in Jiangyin Sulong Thermal Power for the purpose of concentrating resources on renewable energy development last month.

The bank said that Longyuan's wind power generation in the first five months of this year declined by 5.6% year-on-year, mainly due to a decrease in wind resources. Considering the lower base and continued efforts to improve hardware efficiency, it is expected that the group's wind power generation in the second half of the year will have a chance of recovery.

The bank lowered its earnings forecast for the group for the fiscal year 2025-2025 by 4-13% and reduced the target price from HKD 12 to HKD 8.8, but maintained a "outperform" rating.