The Zhitong Finance App learned that Bank of America Securities released a research report saying that Longyuan Electric (00916)'s second-quarter results fell short of expectations. After the performance briefing, it was clearly reflected that the narrowing of the decline in electricity prices did not mean that profits had reached an inflection point. In particular, the utilization rate of wind power and solar energy assets seemed to deteriorate further throughout the industry. Although some were dragged down by weak wind resources, Longyuan's wind power generation fell 6% year on year in July, indicating that the weak wind situation has not been reversed. The bank believes that the power limit problem will be difficult to improve quickly in the short term. As production capacity continues to expand, rising operating costs are putting further pressure on profit margins and cash flow, thus maintaining the “outperforming market” rating. The profit forecast was lowered by 11%, and the target price was reduced from HK$5.8 to HK$5.

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