Original title: Credit Suisse: Yulongyuan Electric Power (00916) has a target price of HK$6, reaffirming the “outperform the market” rating Source: Zhitong Financial Network

The Zhitong Finance app learned that Credit Suisse has now given Longyuan Electric Power (00916) a target price of HK$6, reaffirming its “outperform the market” rating.

Credit Suisse published a research report saying that the stock price of Longyuan Electric Power rose 13% yesterday (July 30). Credit Suisse believes it may be driven by the favorable renewable energy subsidy policy anticipated by the market.

Credit Suisse said that there are reports that the China Wind Energy Association has suggested that the central government consider issuing relevant bonds to resolve the issue of delays in payment of renewable energy subsidies. Currently, Credit Suisse believes that the current risk return of Longyuan is still in an advantageous position, including the existence of favorable factors such as potential privatization and subsidy collection that are superior to expectations, and that the company's valuation is attractive to investors. Currently, the company's valuation is equivalent to 0.7 times the predicted market account rate for this year, far below 0.9 times the historical average.

Credit Suisse has now reiterated that Longyuan Electric “outperforms the market” rating, with a target price of HK$6.