＜Research＞JPM Downgrades CGN POWER (01816.HK) to Neutral, Raises CHINA LONGYUAN (00916.HK) TP to $8.1

　　JPMorgan released a research report predicting that the interim results of companies utilizing different renewable energy sources will record varying trends, among which hydropower companies will record an average earnings growth of around 20% on the back of inflow recovery. The broker also expects wind farm operators to record a drop in earnings of around 10% due to weaker wind speeds, worse curtailment, and lower tariffs.

　　JPMorgan anticipates that CGN POWER (01816.HK) +0.020 (+0.595%) Short selling $28.18M; Ratio 11.280% s earnings to be flat, against the market's estimates of a 10% YoY rise, and that its share price has roughly doubled since early 2023 on a valuation reappraisal, far outperforming the Hang Seng China Enterprises Index (HSCEI) by more than 100% over the same period. However, the broker reported that the operating environment for on-grid tariffs is not as strong as it has been in the past, and that on the cost side, the spot uranium price has risen by 60% from early 2023. In the light of the medium-term risks, CGN Power has been downgraded to a Neutral rating from Overweight, with a TP of $3.45, down 4% from $3.6.

　　JPMorgan also expects CHINA LONGYUAN (00916.HK) +0.170 (+2.342%) Short selling $18.85M; Ratio 7.270% 's 1H24 net profit to fall 11%, as capacity growth is offset by lower wind utilization hours. The broker raised the TP of the company from $7.9 to $8.1 and maintained an Overweight rating on it after considering its modest valuation. For its peer, DATANG RENEW (01798.HK) +0.030 (+1.415%) Short selling $3.33M; Ratio 18.896% , the broker expected its interim net profit to fall 16% YoY, and the target price was raised from $1.8 to $1.95, with a Neutral rating.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-26 16:25.)

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