China Longyuan Power Group (SEHK:916) has come back into focus after reporting nine month 2026 sales of CNY 21,242.17 million and net income of CNY 3,006.79 million, both below the prior period.
China Longyuan Power Group’s stock has bounced in the very short term, with a 1 day share price return of 8.03% and a 7 day gain of 12.05%. However, the year to date share price return is still down 17.46%, and the 1 year total shareholder return has fallen 21.88%, which points to recent momentum building off a weaker long run record.
Pace your exposure to China Longyuan Power Group by comparing it with a curated 194 high quality undervalued stocks that have been filtered for strong cash generation and balance sheet support.Bulls point to China Longyuan Power Group’s rebound and long record in wind power, while bears focus on weaker nine month earnings and dividend value estimates. The numbers next answer which side currently has more support.
Price-to-Earnings of 13.2x: Is it justified?
China Longyuan Power Group changes hands at a P/E of 13.2x, which sits below the estimated fair P/E of 14.3x and a touch under the wider Asian renewable energy average of 14.6x. At a last close of HK$5.58, the market is paying a modest discount to the fair ratio implied by the SWS model while still valuing the stock slightly above the peer group average P/E of 12.4x.
P/E compares what investors pay today with the earnings the business generates and is often a key yardstick for utilities and renewable power producers. For China Longyuan Power Group, a 13.2x multiple sits in a middle ground where the share price does not look aggressively cheap or stretched on headline earnings alone, especially given the reported decline in earnings over the past year and lower net profit margins compared with last year.
The comparison lines up in an interesting way. The P/E of 13.2x is below the Asian renewable energy sector reading of 14.6x, which suggests the wider industry carries a richer tag than this stock. At the same time, the current level is above the peer average P/E of 12.4x, so the ticker trades at a premium to closer comparables. The fair P/E of 14.3x from the SWS model points to a level the market could move towards if sentiment and earnings delivery tracked that framework more closely.
Explore the SWS fair ratio for China Longyuan Power Group.
Result: Price-to-Earnings of 13.2x (ABOUT RIGHT)
Still, nine month earnings running behind the prior period and a five year shareholder return decline of 63.14% leave China Longyuan Power Group’s rerating story exposed.
Find out about the key risks to this China Longyuan Power Group narrative.
Another view on China Longyuan Power Group’s value
A different lens tells a tougher story. Our DCF model points to a future cash flow value of HK$3.79 per share, while China Longyuan Power Group trades at HK$5.58. That suggests the stock is priced well above this estimate, which raises the question of how confident you are in the more optimistic earnings path the market is implying.
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out China Longyuan Power Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 194 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
Mixed signals on China Longyuan Power Group can pull you in both directions, so treat this as a prompt to review the evidence quickly and decide where you stand. To weigh the 1 or more risks against the 1 or more rewards in one place, go straight to the 2 key rewards and 2 important warning signs
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