CHINA LONGYUAN

China Longyuan Power declined 0.52% to HKD 5.71, showing a weak trajectory: the morning session opened at 5.70 and briefly recovered to 5.74 (previous close) but failed to hold gains; the afternoon session tumbled to a fresh low near 5.64 before a minor rebound to close at 5.71. Recent pressure stems from weakening fundamentals and moderating institutional sentiment — Q1 EPS slid 9.79% year-over-year to HKD 0.2202, while net profit fell 9.78% despite a modest 2.02% revenue growth. June power generation contracted 7.48% year-over-year, reflecting sector headwinds from El Niño effects. JP Morgan has downcut its target price to CNY 7 and maintained a Neutral rating; the stock was also ranked among the top-10 most shorted HK stocks by S&P Global. Year-to-date the stock is down 15.53%, having retraced 34% from its 52-week high of HKD 8.66 and now hovering near June's trough. However, the company trades at a low valuation — P/E of just 9.68, P/B of 0.58, and a 3.17% dividend yield — which may offer some cushion.

Longyuan Power edged up 0.70% to close at HK$5.74, though the stock remains trapped in a deeper correction. Down 15.09% year-to-date and 33.72% below its October 2025 peak of HK$8.66, it is trading near its 52-week low of HK$4.95. While first-quarter operating revenue rose 2.02% to HK$8.92 billion, net profit declined 9.78% to HK$1.84 billion, signaling stalled earnings growth. June power generation fell 7.48% year-over-year, primarily due to El Niño-driven drought conditions that directly dampened generation efficiency and profitability. Full-year 2025 results showed net profit down 27.9%, and JP Morgan has cut its target price to RMB 7 yuan while downgrading the rating, reflecting institutional caution on near-term prospects. That said, at a PE of just 9.73x and price-to-book of 0.58x, valuation has compressed to relative lows—though persistent operational headwinds from lower generation remain a material constraint.

China Longyuan Power eased 1.72% to HKD 5.70 today, pressured by June power generation falling 7.48% year-over-year amid broader wind-power headwinds. Q1 2026 operating revenue reached HKD 89.2 billion, up 2.02% YoY, yet net profit declined to HKD 18.41 billion, down 9.78% YoY, reflecting strains from natural factors like El Niño constraining generation volumes. The stock has retreated 15.68% since year-start and trades 34.18% below its 52-week peak of HKD 8.66, currently sitting above the 20-day MA of HKD 5.31 but significantly below the 60-day MA of HKD 6.02, signaling short-term weakness. Despite compressed valuation metrics with PE at 9.66 and PB at just 0.58, market sentiment remains cautious on near-term generation outlook; JPMorgan trimmed its price target to HKD 7 with a Neutral rating.

The stock rose 2.65% to HKD 5.80 today, recovering from the June power generation decline of 7.48% year-over-year. Morning session opened at 5.66 and climbed to 5.81 by midday, then advanced to 5.82 in the afternoon, with total trading volume of 194 million shares and HKD 1.12 billion turnover. Viewed on a price-positioning basis, the stock has rebounded 17% from the 52-week low of HKD 4.95 in late June but remains down 14.2% year-to-date and stands 33% below the October 2025 high of HKD 8.66. Q1 2026 results showed EPS down 9.79% year-over-year to HKD 0.22, net profit down 9.78% to HKD 1.84 billion, while operating revenue grew 2.02% to HKD 8.92 billion. The stock currently trades between its 20-day moving average of 5.28 and 60-day moving average of 6.03, with a static PE of 9.83 times and PB of 0.59 times.

Longyuan Power rose about 1.6% today, primarily driven by technical recovery following prior sharp declines and valuation attraction. The stock has rebounded roughly 14% from its 52-week low of HKD 4.95, though it remains significantly below the 52-week high of HKD 8.66 (down 35%), with year-to-date performance declining 16.4%. The company faces dual headwinds: June power generation fell 7.48% year-over-year to approximately 5.35 million MWh, while full-year 2025 net profit of RMB 4.638 billion declined 27.9% year-over-year, with dividends maintained at RMB 0.0625 per share. Despite current valuation multiples being attractive at P/E of 9.58 and P/B of 0.57, sustained declines in power generation and profitability warrant caution, with weather factors like El Niño adding uncertainty to renewable power generation prospects.