Golden Sentinel Wealth News | Bocom Intl issued a research report stating that China Longyuan Power (00916) increased its overall electricity generation in the third quarter by 6% year-on-year, with wind power generation up by 6%, photovoltaic power generation up by 42%, and only thermal power generation falling by 14% year-on-year due to the impact of project sales. The bank estimates that the company's net profit for the first three quarters (excluding perpetual bond interest) will still decrease by 22% year-on-year to 4.7 billion yuan, similar to the approximately 20% decrease in net profit in the first half of this year. The market has some expectations for the company's weak performance in the third quarter.

The bank has raised the company's profit forecast for 2024-2026 by 0.4%/3.9%/5.1%, mainly due to the slowing progress of the company's wind farm transformation from large to small scale. Therefore, the bank has reduced the estimated impairment of the company's assets in 2025/26 by 14%/13%. Operational improvement and progress in acquisitions remain key factors for valuation enhancement. The bank has adjusted the company's valuation criteria to 10.5 times the 2025 P/E ratio (previously 9.5 times), with a 10% relative discount to the 5-year historical average. The target price has been raised from HK$7.23 to HK$8.35, maintaining a buy rating.