Longyuan Electric Power (00916) fell nearly 5% in early trading. As of press release, it was down 4.83% to HK$4.53, with a turnover of HK$26.5513 million.
The Zhitong Finance App learned that Longyuan Electric Power (00916) fell nearly 5% in early trading. As of press release, it was down 4.83% to HK$4.53, with a turnover of HK$26.4513 million.
According to the news, Longyuan Electric Power announced that the company completed 6,990,891 megawatt-hours of power generation according to the consolidated statement in January 2024, an increase of 2.10% over the same period in 2023. Among them, wind power generation decreased by 8.36%, thermal power generation increased by 40.42%, and other renewable energy generation increased 275.75%.
Citi released a research report saying that it has begun a 90-day downward catalytic observation of Longyuan Electric Power, and it is expected that last year's net profit will fall short of market expectations. At the same time, the net profit forecast for last year was lowered by 6.3%, and by 1.4% and 0.9% for this year and next two years, respectively; the target price was lowered from HK$6.5 to HK$6.2, making it a “buy” rating. The bank pointed out that Longyuan Electric Power's stock price drop last year may be due to market concerns about lower electricity prices for new projects and negative free cash flow due to high capital expenditure. However, a reduction in the unit cost of equipment may increase the return on new projects.