According to a research report published by Morgan Stanley, although the valuation of Longyuan Electric Power is not high, it faces deteriorating wind resources and electricity price pressure, and the wind power business is weak. The target price for H shares was lowered by 20% from HK$7.5 to HK$6, and the target price for A-shares was lowered by 14% from $17 to $14.6, all maintaining a “in sync with the market” rating. Damo lowered Longyuan Electric Power's revenue forecasts by 15% and 11% for 2026 and 27, respectively, to reflect a number of factors: wind resources were weaker than expected due to the El Niño phenomenon in 2026, causing wind power generation to fall short of expectations; the increase in market electricity transactions put further pressure on wind power feed-in prices; and the cancellation of VAT rebates for onshore wind power projects from November 2025. The bank anticipates that wind power will generally recover after El Niño, so it predicts a moderate recovery from 2027 to 2028 utilization hours.

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