Zhi Tong Cai Jing·2025-07-29 08:44Core Viewpoint - DBS maintains a "Hold" rating on Longyuan Power (00916, 001289.SZ) due to subdued growth prospects, adjusting the target price for H-shares from HKD 6.7 to HKD 7.2 and for A-shares from RMB 16.6 to RMB 17.5, with a forecasted profit decline of approximately 2% in 2025, followed by a rebound of 7% in 2026 [1] Group 1 - Longyuan Power has implemented several strategies to mitigate the impact of declining electricity prices, including participation in green electricity trading, strategic transactions in high-price areas, and increasing the proportion of long-term electricity sales contracts [1] - The company's wind power electricity price has only decreased by 1.6% year-on-year in the first quarter, while the photovoltaic electricity price remains relatively stable [1] - Longyuan Power has adjusted its growth strategy to focus on enhancing the efficiency of existing projects, prioritizing the development of high-return new projects, and emphasizing quality over scale expansion [1] Group 2 - The company is estimated to add 5 GW of installed capacity this year, slowing down to 2.8 GW next year [1] - In the first half of this year, the company's electricity generation increased by 12.5% year-on-year, exceeding expectations, leading to a 3.4 percentage point upward adjustment in the annual electricity generation growth forecast to approximately 12% [1] - Consequently, profit forecasts for 2025 and 2026 have been raised by 3% to 6% [1]