HSBC's research report pointed out that China Longyuan Power (00916.HK) has four catalysts worth noting, including subsidy settlement, green certificates, dividends in the first half of 2024, and asset injection. The bank raised its target price for the stock from HKD 7.6 to HKD 10 and maintained a 'buy' rating.

The reason for the company's re-evaluation, according to the report, is the policy talks regarding power market reforms, which are still ongoing despite short-term headwinds, including downward risks in electricity prices, continued asset impairment expenses, and delayed subsidies for renewable energy. However, the bank believes that investors in the stock have already understood these risks. In the long run, as electricity prices become market-based and green certificates potentially become available, the return on investment for the company's wind and solar power generation will increase in visibility.

The bank also pointed out that the company announced in May the appointment of Gong Yufei as chairman and Wang Liqiang as general manager, who joined the company in 2020 and will assume the position in 2023. Both have held different positions at China Energy Group and Shenhua Group, the main shareholders of China Longyuan Power. The market seems to believe that this change in management can promote the resumption of the plan to inject renewable energy assets into the parent company.