Core Viewpoint - Bank of America Securities forecasts that Longyuan Power (00916) will continue to face profit pressures due to declining electricity prices and utilization rates [1] Summary by Categories Earnings Forecast - The firm has lowered Longyuan Power's earnings estimates for the next two years by 4% to reflect a more conservative outlook for the second half of the year [1] - The anticipated provincial bidding results for wind and solar power capacity are expected to lead to further profit downgrades [1] Rating and Target Price - The rating for Longyuan Power is maintained at "underperform" with the target price adjusted from HKD 5.7 to HKD 6 [1] Interest Costs and Uncertainty - Lower interest costs are expected to partially offset the earnings decline [1] - The firm notes a high level of uncertainty in forecasts, particularly with the potential for asset injections to provide a boost in the second half of the year [1]

Core Viewpoint - Bank of America Securities anticipates that Longyuan Power (001289)(00916) will continue to face profit pressures due to declining electricity prices and utilization rates [1] Group 1: Earnings Forecast - The upcoming provincial bidding results for wind and solar power capacity are expected to lead to further profit downgrades for Longyuan Power [1] - The firm has lowered its earnings estimates for Longyuan Power by 4% for the next two years, reflecting a more conservative outlook for the second half of the year [1] - Despite the earnings downgrade, the lower interest costs are expected to partially offset the impact [1] Group 2: Rating and Target Price - Bank of America maintains a "Underperform" rating for Longyuan Power, with the target price adjusted from HKD 5.7 to HKD 6 [1] - The firm notes a high level of uncertainty in its forecasts, particularly regarding potential asset injections in the second half of the year [1]

Investment Rating - The report assigns a "Buy" rating for the company [2][14]. Core Views - The company is expected to maintain its annual new installed capacity target of 5 GW despite weaker operational performance in the first half of 2025, which is in line with expectations. The target price has been raised to HKD 8.23, reflecting a potential upside of 19.8% from the current price of HKD 6.87 [2][6][14]. Financial Overview - Revenue for 2023 is projected at RMB 29,631 million, with a year-on-year decline of 25.7%. The revenue is expected to grow to RMB 34,606 million by 2025, reflecting a growth rate of 10.3% [5][15]. - Net profit for 2023 is estimated at RMB 6,157 million, with a projected increase to RMB 6,658 million by 2025, indicating a growth of 4.4% [5][15]. - The company has a dividend payout ratio of 24% for the interim dividend, with a planned cash dividend ratio of no less than 30% of net profit for 2025-2027 [6][15]. Operational Performance - In the first half of 2025, the company reported a net profit of RMB 3,519 million, a decrease of 13.6% year-on-year, primarily due to lower utilization hours and electricity prices [6][7]. - The average utilization hours for wind power were 1,102 hours, slightly above the industry average of 1,087 hours, but down by 68 hours year-on-year [6][8]. - The company achieved a new installed capacity of 2.1 GW in the first half of 2025, with wind and solar contributing 0.99 GW and 1.09 GW, respectively [6][9]. Market Position - The company’s market capitalization is approximately HKD 22,793.84 million, with a 52-week high of HKD 8.29 and a low of HKD 5.31 [4][6]. - The average daily trading volume is reported at 60.20 million shares [4]. Future Projections - The company aims to achieve a total installed capacity of 46,643 MW by 2025, with significant contributions from both wind and solar energy [9][15]. - Capital expenditures for 2025 are expected to be around RMB 20 billion, with a net debt-to-equity ratio projected to decrease from 168% to 161% by year-end [6][15].

Core Viewpoint - Longyuan Power (001289) reported a decline in revenue and net profit for the first half of 2025, with total revenue of 15.657 billion yuan, down 18.61% year-on-year, and net profit attributable to shareholders of 3.375 billion yuan, down 13.79% year-on-year. However, the company's profitability improved, with an increase in gross margin and net margin [1][3]. Financial Performance - Total revenue for the first half of 2025 was 15.657 billion yuan, a decrease of 18.61% compared to 2024 [1]. - Net profit attributable to shareholders was 3.375 billion yuan, down 13.79% year-on-year [1]. - Gross margin increased to 40.87%, up 11.56% year-on-year, while net margin rose to 25.58%, an increase of 5.38% [1]. - Total expenses (selling, administrative, and financial) amounted to 1.922 billion yuan, accounting for 12.27% of revenue, which is a 25.16% increase year-on-year [1]. - Earnings per share decreased to 0.4 yuan, down 13.01% year-on-year [1]. Cash Flow and Debt - Cash flow from operating activities decreased by 8.49%, attributed to the absence of cash inflow from the thermal power segment and reduced renewable energy subsidies [3][4]. - The company’s net cash flow from investing activities increased by 11.69%, due to reduced capital expenditures on wind and solar projects compared to the previous year [3]. - The net cash flow from financing activities decreased by 11.71%, as cash received from borrowings fell more than cash used for debt repayment [4]. Business Evaluation - The company's return on invested capital (ROIC) was 5.46%, indicating average capital returns [7]. - The historical median ROIC since the company’s listing is 5.74%, suggesting that investment returns have been generally average [7]. - The company’s cash flow situation is concerning, with cash and cash equivalents only covering 4.3% of current liabilities [7]. - The debt situation is also notable, with interest-bearing debt to asset ratio reaching 52.74% [7]. Market Position - Longyuan Power's performance is influenced by its capital expenditures, which need careful evaluation to ensure they are yielding satisfactory returns [7]. - The company has seen a significant impact on revenue due to the disposal of its thermal power segment, which has affected both income and costs [3][4].

Trading Information - As of August 20, 2025, Longyuan Power (001289) closed at 16.62 yuan, down 0.12%, with a turnover rate of 0.13%, trading volume of 65,400 shares, and a transaction amount of 107 million yuan [1] - On the same day, the fund flow for Longyuan Power showed a net inflow of 8.81 million yuan from main funds, a net inflow of 1.36 million yuan from retail funds, and a net outflow of 10.17 million yuan from individual investors [1] Performance Disclosure Highlights - Longyuan Power's mid-year report for 2025 indicated a main revenue of 15.657 billion yuan, a year-on-year decrease of 18.61% [2][3] - The net profit attributable to shareholders was 3.375 billion yuan, down 13.79% year-on-year [2][3] - The net profit excluding non-recurring items was 3.287 billion yuan, a decrease of 12.26% year-on-year [2][3] - In Q2, the main revenue was 7.517 billion yuan, down 18.18% year-on-year, while the net profit attributable to shareholders was 1.473 billion yuan, a slight decrease of 0.07% [2] - The net profit excluding non-recurring items for Q2 was 1.426 billion yuan, an increase of 5.64% year-on-year [2] - The debt ratio stood at 67.13%, with investment income of 120 million yuan and financial expenses of 1.719 billion yuan, while the gross profit margin was 40.87% [2] Company Announcements Summary - Longyuan Power plans to distribute a cash dividend of 1.00 yuan (pre-tax) for every 10 shares, with a total cash dividend amounting to approximately 835.98 million yuan, pending shareholder approval [4][6] - The board approved the mid-year profit distribution plan, which represents 24.77% of the net profit [6][8] - The company reported a net cash flow from operating activities of 6.673 billion yuan, down 8.49% year-on-year [3] - Total assets reached approximately 269.1 billion yuan, a year-on-year increase of 4.55%, while the net assets attributable to shareholders grew by 2.11% to approximately 74.83 billion yuan [3]

Summary of Longyuan Power's Conference Call Industry Overview - The renewable energy market is undergoing significant reforms, transitioning from policy-driven to market-driven dynamics, as indicated by Document 2 and Document 4. The issuance of Document 136 in February 2025 allows renewable energy to enter the electricity market fully, establishing a new pricing and trading framework. Over ten provinces have already implemented detailed rules. Key Company Insights - **Renewable Energy Generation**: In the first half of 2025, Longyuan Power generated 39.652 billion kWh of renewable energy, a year-on-year increase of 12.73%. Wind power contributed 33.503 billion kWh (up 6.07%), while solar power reached 6.147 billion kWh (up 71.37%) [2][5]. - **Project Development**: The company is advancing major projects in Ningxia and Gansu, with a total development target of 4.75 million kW, including 2.98 million kW from wind and 1.77 million kW from solar [2][6]. - **Financial Performance**: Revenue for the first half of 2025 was CNY 15.657 billion, down 18.6% year-on-year, primarily due to the divestment of thermal power assets. Excluding thermal power, renewable energy revenue grew by 3.1% [2][13]. - **Net Profit**: The net profit attributable to equity holders was CNY 3.519 billion, a decrease of 14.4% year-on-year, influenced by lower utilization hours and electricity prices [2][14]. Financial Management - **Debt Issuance**: The company issued CNY 22 billion in bonds at an average financing cost of 2.31%, a reduction of 0.37 percentage points from the previous year [2][11]. - **Asset Management**: As of June 2025, total assets reached CNY 269.167 billion, a 4.47% increase from the end of 2024. The net debt-to-equity ratio was 63%, up 0.61 percentage points [2][16]. Market Strategies - **Pricing and Sales**: The average bidding price for wind power was CNY 0.422 per kWh, down 1.6 cents year-on-year, while solar prices remained stable at CNY 0.273 per kWh. Green certificate transactions reached 4.1 billion kWh, a 41% increase [2][9]. - **Marketing Initiatives**: The company is enhancing its marketing strategies to adapt to the accelerated market environment, focusing on optimizing subsidy recovery and improving marketing processes [2][9]. Technological Innovations - Longyuan Power is committed to technological advancements, with significant projects in areas such as underwater monitoring systems and ice prevention technologies. The company has filed 56 patent applications related to its innovations [2][10]. Future Outlook - **Sustainable Growth**: The company aims to maintain sustainable growth and high-quality development, focusing on enhancing core competitiveness and transitioning towards a green, market-oriented model [2][17]. - **Market Adaptation**: Longyuan Power is actively responding to the challenges posed by the 136 document, implementing cost control strategies and enhancing digital capabilities to improve operational efficiency [2][22]. Challenges and Opportunities - The implementation of the 136 document is expected to reduce guaranteed revenue for renewable projects, increasing market price volatility. Longyuan Power is preparing to adapt its strategies accordingly [2][20][21]. Conclusion Longyuan Power is navigating a transformative period in the renewable energy sector, focusing on project development, financial management, and technological innovation to sustain growth and adapt to market changes. The company is well-positioned to leverage emerging opportunities while addressing the challenges presented by regulatory reforms.

智通财经APP获悉，大和发布研报称，龙源电力(00916)公布第二季业绩，并派发首次中期股息。虽然该 行看好其资本分配的改善，但管理层的回应可能指向全年派息持平。对于下半年，该行认为龙源电力缺 乏正面催化因素，维持"持有"评级，目标价就由6.5港元升至7.3港元。该行指，第二季电价及利用率仍 处于跌势，下半年前景不乐观。而随着下半年煤价反弹，电价跌幅将缓和，但快速回升的可能性不大。 ...

2025年以来，龙源电力牢牢把握生态文明建设和能源转型机遇，主动应对市场环境变化带来的困难挑 战，贯彻落实一系列固根本、利长远的工作，稳中求进、精准施策，加快融入国家新能源发展大局大 势。 2025年是"十四五"规划收官之年，也是"十五五"规划谋篇之年。今年以来，龙源电力紧密跟踪各省新能 源上网电价市场化改革实施方案发布情况，积极应对电力市场建设全面加速和新能源全面入市形势，深 化"六位一体"营销体系，重点关注机制电量纳入规模、增量项目竞价安排、现货价格上下限等关键内 容，踊跃参与各省区市场化改革方案规则制定，争取有利政策。动态优化交易策略，统筹中长期交易与 月度、月内、多日等短周期交易调仓，实现中长期交易与现货交易精准衔接，确保交易量价最优。积极 争取储能充放电计划，大力开拓绿证外销市场，寻找发电效益最优解。 除此之外，在科技创新赛道上，龙源电力持续加码发力，依托新能源数字化平台与AI大模型，搭建"三 比三看"对标体系。积极投身国家重点项目，国家重点专项"多场景风电场规划设计关键技术及软件开 发"、国家自然基金项目"风机叶片与光伏板表面防冰涂层的制造与应用"成功获批。国家科技重大专 项"多类构网型设备接入下 ...

大和发布研报称，龙源电力（001289）(00916)公布第二季业绩，并派发首次中期股息。虽然该行看好 其资本分配的改善，但管理层的回应可能指向全年派息持平。对于下半年，该行认为龙源电力缺乏正面 催化因素，维持"持有"评级，目标价就由6.5港元升至7.3港元。该行指，第二季电价及利用率仍处于跌 势，下半年前景不乐观。而随着下半年煤价反弹，电价跌幅将缓和，但快速回升的可能性不大。 ...

Group 1: Macroeconomic Insights - In July, the growth rate of broad fiscal expenditure slowed to 12.1% from 17.6% in June, with an estimated year-on-year growth of 7.6% after excluding special bonds, which is still higher than the nominal GDP growth of 3.9% in Q2, indicating that fiscal easing supports nominal growth [2] - The broad fiscal deficit recorded 352.5 billion yuan, an increase of approximately 213.4 billion yuan year-on-year, highlighting the continued liquidity injection into the real economy through special bonds and capital injections [2] Group 2: Market Activity and Investment Trends - A-share market activity has rebounded, with trading volumes increasing and the number of active retail investors reaching a year-to-date high, indicating sustained interest from retail investors [3] - Private equity product registrations were high, with 666 new products registered in early August, a 6% increase from July, suggesting robust private investment activity [3] - Foreign and insurance capital are expected to be significant sources of incremental investment, with insurance capital's market entry ratio increasing in Q2 2025 [3] Group 3: Industry Developments - The State Administration of Radio and Television's new measures aim to enhance the supply of quality content for television, which is expected to boost viewership and commercial levels in the film and television industry [8] - The strategic importance of rare earths is highlighted, with expectations of price increases due to supply-demand imbalances in 2025-2026, driven by geopolitical factors and domestic policies [9] - The automation of warehousing through robotics is anticipated to transform the logistics industry, with a focus on enhancing efficiency and reducing costs [10] Group 4: Company-Specific Insights - China Everbright Bank has been rated as "Accumulate" with a target price of 4.62 HKD, benefiting from group resources and a strong non-interest income base [12] - Crystal International, a leading garment manufacturer, has been rated "Buy" with a target price of 7.38 HKD, supported by its global presence and strategic acquisitions [13] - Dingdong Maicai, a fresh e-commerce leader, has been rated "Accumulate" with a target price of 2.77 USD, focusing on product strength and market expansion [13] Group 5: Financial Performance Highlights - The financial performance of various companies shows promising growth, with notable increases in revenue and net profit across sectors such as energy, pharmaceuticals, and technology [18][20][22] - For instance, Longyuan Power reported a revenue of 156.57 billion yuan in H1 2025, with a net profit of 33.75 billion yuan, exceeding expectations due to favorable wind power pricing [21] - The performance of companies like Huazhong Medicine and Meihua Biological indicates stable growth and potential for future profitability, supported by innovative product pipelines and market demand [24][33]