Gelonghui, May 6 | Yamato released a report stating that coal prices fell in the first quarter of this year, and profits of independent coal-fired power producers (IPP) rose sharply. Rundian's stock price has risen 22% year to date, outperforming Huaneng Guodian, which has risen 17%. Despite Rundian's low leverage ratio, coal-fired power generation accounts for only 72%, compared to Huaneng Guodian's share of 88%. The bank estimates that the downward trend in coal prices has been reflected in stock prices. Recently, coal prices have rebounded, and Rundian may face a high base for profit in the third quarter. Rundian's wind power generation increased 17% year-on-year in the first quarter, which was superior to the industry's Longyuan Electric Power and Datang New Energy, partially offsetting the impact of falling electricity prices. However, Rundian's growth was achieved on the basis of a 20% increase in wind power installed capacity last year, which may mean that the utilization rate of wind power is low. The bank lowered its forecast for renewable electricity prices this year from a 1.8% year-on-year decline to a 3.7% drop. The renewal priorities for China's independent power generation industry are hydropower, coal-fired power plants, nuclear energy, and renewable energy, respectively. The bank downgraded Rundian's rating from “outperforming the market” to “holding”, and slightly reduced the target price from HK$20.4 to HK$20. Investors are advised to leave the market at a profit.