Zhi Tong Cai Jing·2025-08-20 08:17Core Viewpoint - Daiwa released a report indicating that Longyuan Power (001289)(00916) announced its second-quarter performance and declared its first interim dividend. While the firm is optimistic about the improvement in capital allocation, management's response may suggest that the annual dividend will remain flat. For the second half of the year, Daiwa believes that Longyuan Power lacks positive catalysts and maintains a "Hold" rating, raising the target price from HKD 6.5 to HKD 7.3 [1] Group 1 - Longyuan Power's second-quarter electricity prices and utilization rates are still on a downward trend, with an unfavorable outlook for the second half of the year [1] - The rebound in coal prices in the second half is expected to moderate the decline in electricity prices, but a rapid recovery is unlikely [1] - The management's indication of potentially flat annual dividends raises concerns about future capital distribution [1]