Core Viewpoint - The Hong Kong wind power stocks are showing significant activity, with notable increases in share prices for several companies [1] Company Performance - Goldwind Technology (02208.HK) has seen a rise of 4%, reaching a price of 12.47 HKD [1] - Datang Renewable (01798.HK) increased by 3.95%, with its share price at 2.63 HKD [1] - Longyuan Power (00916.HK) experienced a 3.11% increase, trading at 7.96 HKD [1]

Group 1 - Wind power stocks are mostly active, with Jin Feng Technology rising by 4% to HKD 12.47, Datang New Energy increasing by 3.95% to HKD 2.63, and Longyuan Power up by 3.11% to HKD 7.96 [1] - GF Securities indicates significant results from the wind power industry chain's internal competition, with profits from the complete machine and cable segments expected to continue rising in the first half of 2025, and leading companies seeing a year-on-year doubling of net profit excluding non-recurring items [1] - The industry's return on equity (ROE) is stabilizing and recovering, with the wind turbine and gearbox segments having reached the industry's bottom, likely to see the first signs of profit recovery [1] Group 2 - According to Huachuang Securities, the wind power industry saw a double increase in installation bidding in the first half of this year, with continued optimism for the second half [1] - Benefiting from strong demand for cumulative winning orders, the newly installed wind power capacity in the first half reached 51.4 GW, a year-on-year increase of 98.9%, with offshore and onshore installations contributing 2.5 GW and 48.9 GW respectively, marking increases of 200% and 95.5% year-on-year [1]

Core Viewpoint - The wind power sector is experiencing significant activity, with major stocks showing notable gains, indicating a positive market sentiment and potential growth in the industry [1] Group 1: Stock Performance - Goldwind Technology (02208) increased by 4%, reaching HKD 12.47 [1] - Datang New Energy (01798) rose by 3.95%, trading at HKD 2.63 [1] - Longyuan Power (00916) saw a 3.11% increase, priced at HKD 7.96 [1] Group 2: Industry Insights - GF Securities noted that the wind power industry is seeing significant improvements in profitability, particularly in the complete machine and cable segments, with leading companies experiencing a doubling of non-recurring net profits year-on-year [1] - The industry's return on equity (ROE) is stabilizing and recovering, with the wind turbine and gearbox segments having reached the bottom of the industry cycle, suggesting a potential turning point for profitability [1] Group 3: Installation and Demand - According to Huachuang Securities, the wind power sector has seen a double increase in installation tenders in the first half of the year, with continued optimism for the second half [1] - The total newly installed wind power capacity reached 51.4 GW in the first half of the year, marking a year-on-year increase of 98.9%, with offshore and onshore installations contributing 2.5 GW and 48.9 GW respectively, reflecting increases of 200% and 95.5% year-on-year [1]

Group 1 - Longyuan Power's stock price remained unchanged at 0.00% on September 17, with a trading volume of 76.74 million yuan [1] - The financing buy-in amount for Longyuan Power on the same day was 7.27 million yuan, while the financing repayment was 6.95 million yuan, resulting in a net financing buy-in of 318,800 yuan [1] - As of September 17, the total balance of margin trading for Longyuan Power was 64.77 million yuan, with the financing balance accounting for 0.08% of the circulating market value, indicating a low level compared to the past year [1] Group 2 - Longyuan Power Group Co., Ltd. was established on January 27, 1993, and listed on January 24, 2022, with its main business involving power system and electrical equipment technology transformation, service, and production maintenance [2] - As of June 30, Longyuan Power reported a revenue of 15.66 billion yuan for the first half of 2025, a year-on-year decrease of 17.09%, and a net profit attributable to shareholders of 3.38 billion yuan, down 11.82% year-on-year [2] Group 3 - Longyuan Power has distributed a total of 5.98 billion yuan in dividends since its A-share listing, with 4.75 billion yuan distributed over the past three years [3] - As of June 30, 2025, the top ten circulating shareholders of Longyuan Power included Hong Kong Central Clearing Limited, which increased its holdings by 174,100 shares, and several ETFs that also saw increases in their holdings [3]

Group 1 - Wind power stocks in Hong Kong collectively rose, with Goldwind Technology increasing nearly 6%, Datang New Energy up nearly 4%, Longyuan Power rising over 3%, and Jingneng Clean Energy up 1.6% [1] - In October, 12 turbine manufacturers signed a self-discipline agreement, indicating a recovery in wind turbine bidding prices starting from Q4 2024 [1] - According to Guojin Securities, the average bidding price for domestic onshore wind turbines from January to July this year increased by over 9% compared to the full year of 2024, reaching 1552 RMB per kilowatt [1] Group 2 - The International Energy Agency reported a 60% increase in global electricity investment from 2015 to 2025 [1] - With more capital flowing into renewable energy, investments in wind and nuclear power are expected to reach $242 billion and $74 billion this year, representing growth of 69% and 64% compared to 2015 [1]

Group 1 - The core viewpoint of the article highlights a collective rise in Hong Kong wind power stocks, driven by a self-regulatory agreement among 12 turbine manufacturers to stabilize pricing in the industry starting from Q4 2023 [1] - The average bidding price for domestic onshore wind turbines has increased by over 9% compared to the projected average for 2024, reaching 1552 RMB per kilowatt [1] - The International Energy Agency reports a 60% increase in global electricity investment from 2015 to 2025, with wind and nuclear power investments expected to reach 242 billion USD and 74 billion USD respectively this year, marking growth of 69% and 64% since 2015 [1] Group 2 - Specific stock performance includes: Goldwind Technology up by 5.67% to 12.670 RMB, Datang New Energy up by 3.56% to 2.620 RMB, and Longyuan Power up by 3.11% to 7.960 RMB [1] - Other notable increases include Jingneng Clean Energy up by 1.59%, Xiehe New Energy up by 1.25%, and Xintian Green Energy up by 1.17% [1]

Core Insights - The National Data Bureau of China has officially released the first batch of high-quality data set typical case lists during the 2025 China International Big Data Industry Expo, highlighting the importance of high-quality data sets in various industries [1][4] - The State Energy Group has successfully had multiple projects selected, showcasing its leading capabilities in the application of data elements and digital transformation within the energy sector [1][3] Group 1 - The "Basin Water Disaster Monitoring and Prevention High-Quality Data Set" and the "Wind Power Equipment Diagnosis and Safety Prevention Data Set" have been recognized as national typical cases, indicating their significance in the energy sector [1][3] - The "Large-Scale High-Quality Hydropower Basin Dispatch Data Set" and the "High-Quality Data Set for the Wind Power Industry" have been included in the first batch of national high-quality data set construction pilot projects, emphasizing the focus on enhancing data quality and operational capabilities [1][3] Group 2 - The projects rely on the data center pilot construction in the hydropower business field, aiming to improve the construction and application of high-quality data sets, thereby promoting the development and implementation of large model applications in the hydropower sector [3] - The "Wind Power Equipment Diagnosis and Safety Prevention Data Set" integrates multi-source heterogeneous data to create a comprehensive operational status profile for wind power equipment, transitioning from reactive fault handling to preventive maintenance [3] - The "High-Quality Data Set Construction Project for the Wind Power Industry" focuses on systematic data governance across seven core business areas, facilitating data asset aggregation, governance, sharing, and trading throughout the entire lifecycle and industry chain [3][4]

Core Viewpoint - The recent notice from the National Development and Reform Commission and the Energy Administration aims to enhance the price mechanism to promote the nearby consumption of renewable energy, requiring that the annual self-consumption of renewable energy should account for no less than 60% of the total available generation capacity and 30% of total electricity consumption, with new projects starting from 2030 required to meet at least 35% [1] Investment Highlights - The notice recommends commercial rooftop photovoltaics and highlights the potential of companies like Ankerui. It emphasizes the need for projects to have metering conditions and for grid companies to install metering devices to accurately measure electricity data at various stages [1] - The bidding for large-scale energy storage in August exceeded expectations, with a recommendation for storage operators like Southern Grid Storage. The combination of AI and the finalized document No. 136 is expected to drive the economic viability of large-scale storage, with domestic demand exceeding expectations [1] - Southern Grid Storage is positioned to benefit significantly as a large-scale storage operator within the Southern Grid, with a projected cumulative installed capacity of 654,200 kW and 1,298,300 kWh by the first half of 2025, alongside 10.28 million kW of pumped storage capacity [1] Industry Core Data Tracking - Electricity prices saw a 2% year-on-year decrease and a 1.3% month-on-month increase in August 2025. The price of thermal coal was reported at 680 RMB/ton as of September 12, 2025, reflecting a week-on-week increase of 1 RMB/ton [2] - The water level at the Three Gorges Reservoir was recorded at 162.88 meters, with inflow and outflow rates showing significant year-on-year increases of 33.59% and 198.15%, respectively [2] - Total electricity consumption from January to July 2025 reached 5.86 trillion kWh, a year-on-year increase of 4.5%, with various sectors showing different growth rates [2] - Cumulative power generation for the same period was 5.47 trillion kWh, with a year-on-year increase of 1.3%, while installed capacity additions in the first half of 2025 showed significant growth in renewable sources like wind and solar [2] Investment Recommendations - Companies within the Southern Grid system, such as Southern Grid Energy, Southern Grid Storage, and Southern Grid Technology, are recommended for investment opportunities [3] - The green electricity sector is expected to see improvements in asset quality and growth potential, with specific companies highlighted for attention [3] - The value of photovoltaic assets and charging station assets is anticipated to be reassessed positively due to regulatory support and market dynamics [3] - Investment opportunities in thermal power, particularly in the Beijing-Tianjin-Hebei region, are also recommended [3] - The hydropower sector is expected to benefit from rising prices and low costs, with strong cash flow and dividend capabilities [3] - The nuclear power sector is projected to grow, with multiple approvals for new units expected to enhance profitability and dividends [3]

Core Viewpoint - Longyuan Power's stock price has shown a year-to-date increase of 9.55%, but has recently experienced a decline of 5.09% over the past five trading days, indicating volatility in its market performance [2]. Financial Performance - As of June 30, Longyuan Power reported a revenue of 15.657 billion yuan, a year-on-year decrease of 17.09%, and a net profit attributable to shareholders of 3.375 billion yuan, down 11.82% year-on-year [3]. - The company has distributed a total of 5.978 billion yuan in dividends since its A-share listing, with 4.746 billion yuan distributed over the past three years [4]. Stock Market Activity - On September 16, Longyuan Power's stock price fell by 2.02%, trading at 16.96 yuan per share, with a total market capitalization of 141.782 billion yuan [1]. - The stock has seen a net outflow of 4.8777 million yuan in principal funds, with significant selling pressure observed [1]. Shareholder Composition - As of June 30, 2025, Longyuan Power had 41,000 shareholders, an increase of 1.18% from the previous period [3]. - The top ten circulating shareholders include notable institutional investors, with increases in holdings for several ETFs [4].

Summary of Longyuan Power Conference Call Company Overview - Longyuan Power is a wind power business integration platform under the State Energy Group and is the largest wind power operator globally as of mid-2025, with a controlling stake of 59% held by the State Energy Group [6][12] - The group has a total installed capacity of 355 GW, with 122 GW in green energy, of which Longyuan Power accounts for 46% in wind and 19% in solar [6][12] Industry Dynamics - The domestic wind and solar installation has reached a turning point, with significant policy support leading to a recovery in cash flow for companies like Longyuan Power [2][3] - The implementation of Document No. 136 and mandatory green energy consumption policies have driven the price-to-book ratio (P/B) recovery to 0.76, although it remains at historical lows [2][12] Financial Performance - Longyuan Power's long-term return on equity (ROE) has been stable at 8%-9%, with only two years (2013 and 2022) showing declines due to external factors [7][8] - The company’s electricity price from desulfurization has decreased from 0.5 yuan per kWh in 2017 to 0.19 yuan per kWh in mid-2025, reflecting market pressures [2][9] - The company’s P/B ratio has dropped from a peak of 2.34 in September 2021 to a low of 0.52 in February 2024, with a slight rebound to around 0.76 [4][5] Cash Flow and Valuation - Longyuan Power is expected to face a free cash flow deficit of 12.1 billion yuan in 2024, but with a slowdown in conventional project development and accelerated national subsidy repayments, free cash flow may turn positive in 2025 [4][17] - The company’s accounts receivable stood at 49.5 billion yuan, representing 56% of net assets, indicating a high dependency on subsidy recoveries [18] Future Growth and Asset Development - Future growth will be supported by the injection of approximately 4 GW of green energy units from the group, upgrades to older units, and over 5 GW of offshore wind power reserves [14][15] - The company aims to add 7.5 GW of new capacity in 2024 and 5 GW in 2025, focusing on high-quality resource areas [13][14] Market Conditions and Pricing - The market for green certificates has seen a significant decline in prices, but recent policy changes have led to a recovery, with trading volumes increasing substantially [19] - The competitive advantage of wind power over solar is highlighted by better alignment with load curves and higher market prices [15] Profit Forecast - Longyuan Power's projected net profits for 2025, 2026, and 2027 are 6.43 billion yuan, 7.22 billion yuan, and 7.93 billion yuan, respectively, indicating growth rates of 0.1%, 12%, and 10% [20] Conclusion - Longyuan Power is positioned to benefit from industry recovery and policy support, with a strong asset base and growth potential despite current market pressures and historical low valuations [2][20]