The Zhitong Finance App learned that J.P. Morgan Chase released a research report saying that Longyuan Electric (00916)'s profit for the third quarter is expected to fall by about 25% year-on-year to about 830 million yuan, a slight improvement from the year-on-year decline of 28% in the first half of the year. It is supported by the stabilization of wind power generation and continued strong support from solar power; the bank maintains Longyuan Electric's “increase” rating with a target price of HK$7.

The bank pointed out that wind power generation in the third quarter was roughly the same year on year, an improvement of 7% year over year in the first half of the year; solar power generation increased 15% year on year. Although the trend in power generation has stabilized, actual electricity prices are still under pressure due to the implementation of Document 136. The bank believes that the worst time for the company's profit reset may have passed. The actual pressure on electricity prices is expected to ease after the first full year of electricity marketization reset in 2026, supporting the gradual recovery of profit fundamentals in 2027. It is expected that operating fundamentals will gradually improve over time. The bank kept Longyuan's profit forecast unchanged from 2026 to 2028.

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