The Zhitong Finance App learned that Longyuan Electric Power (00916) fell nearly 3%. As of press release, it fell 2.57% to HK$5.305, with a turnover of HK$64.656 million.

According to a research report, Longyuan Electric Power's net profit for the first half of 2026 was 2,527 million yuan, down 28.2% year on year; net profit for the second quarter was 827 million yuan, a significant drop from 1.7 billion yuan in the first quarter. The bank believes that although the valuation of Longyuan Electric Power is not expensive. The net ratio of the H share and A share market is predicted to be 0.5 times and 1.6 times, respectively, in 2027, profits in the second half of the year may still be disappointing. Coupled with the limited potential upward space for renewable energy electricity price policies, and the return on new wind power and solar energy projects may decline after “Document No. 136.”

Damo said that Longyuan Electric Power's revenue forecasts for 2026 and 27 were lowered by 15% and 11%, 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 transactions put further pressure on wind power feed-in prices; and the cancellation of value-added tax 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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