20231130-招银国际-龙源电力-00916.HK-Oct_operating_data_recap_6页_1mb

China Longyuan Power (916 HK) Report Summary

China Longyuan Power (CLY) experienced a slightly disappointing Oct 2023 operating performance with a 10.99% year-on-year decline in total power generation, primarily due to lower wind power output. However, thermal power generation and other renewable power showed strong growth of 15.57% and 162.92% YoY respectively. The company has implemented an H-share buyback program, repurchasing 3.58 million shares at an average price of HK$6.25 per share in November 2023, to demonstrate confidence and capitalize on the current valuation. CLY is positioned as a pioneer in China's renewable energy sector and is expected to benefit from collaborative efforts with the US under the Sunnylands Statement to triple global renewable capacity by 2030. Consequently, the target price for CLY-H was raised to HK$10.09, maintaining a BUY recommendation. Financial forecasts for 2023-2025 show positive earnings growth based on improved utilization hours in the Jan-Oct period, with an 10x 2024E P/E multiple.