Ge Long Hui·2025-08-22 03:00Core Viewpoint - The report from CMB International indicates that Longyuan Power's operating hours and on-grid electricity prices were under pressure in the first half of the year, which was anticipated. The company's net profit decreased by 13.6% year-on-year to 3.52 billion yuan, aligning with market expectations [1] Financial Performance - The decline in net profit was primarily due to reduced operating hours and falling electricity prices, while revenue growth lagged behind the cost increase associated with installed capacity growth [1] - Wind and solar power generation increased by 6.1% and 71.4% year-on-year, respectively, contributing to an overall rise in total power generation [1] Earnings Forecast and Valuation - The company slightly adjusted its earnings forecasts for 2025 and 2026 downwards by approximately 0.8% and 0.6%, respectively, reflecting the impact of declining electricity prices [1] - The target price was raised from 7.81 HKD to 8.23 HKD, maintaining a "Buy" rating [1] Dividend Policy - The company announced a dividend plan for 2025-2027, committing to a cash dividend ratio of no less than 30% of net profit [1] - Expected dividend yields for 2025 and 2026 are projected at 3.8% and 4%, respectively [1]