CHINA LONGYUAN Rises 5%; UBS Says 1Q Results In Line; Citi Urges Caution

CHINA LONGYUAN (00916.HK) +0.320 (+5.112%) Short selling $29.49M; Ratio 25.697% opened 0.5% higher today (30th) and peaked at HKD6.58. It is now trading at HKD6.58, up 5.11%, with 45.0486 million shares traded, involving HKD292 million.UBS said CHINA LONGYUANs 1Q results were broadly in line with market expectations. Net profit fell 14% YoY to RMB1.7 billion, while revenue declined 4% YoY to RMB7.9 billion, mainly due to weaker wind power generation. However, solar power revenue rose 27% YoY, and operating cash flow increased 5% YoY to RMB2.9 billion, reflecting a slight improvement in subsidy recovery. The broker noted that weak 1Q net profit was mainly attributable to reduced VAT rebates and lower government subsidies, which were the biggest drags. In addition, wind power utilization rate fell 11% YoY, partly offset by a 6% expansion in wind power capacity, while average wind tariff remained broadly flat.The broker expects a neutral market reaction as March operating data had already reflected the weak 1Q performance. UBS maintained a Buy rating on CHINA LONGYUAN with a TP of HKD7.8. It sees two potential catalysts ahead, including reform of renewable energy tariff policies and possible acceleration in subsidy recovery.Citi said CHINA LONGYUANs 1Q net profit fell 14.3% YoY to RMB1.7 billion, 4% below its forecast and also missing market expectations. The figure accounted for only 30% of consensus full-year 2026 earnings forecasts, well below the average 42% contribution of 1Q net profit to full-year earnings over the past five years. The broker attributed the miss mainly to a sharper-than-expected decline in wind farm utilization hours (down 11.1% YoY to 520 hours) and a larger-than-expected drop in solar on-grid tariffs (estimated down 4.4% YoY to RMB272.6 per kilowatt-hour). It maintained a Neutral rating with a TP of HKD7.0, remaining cautious on the stock. Citi expects earnings to be pressured by declines in tariffs and utilization hours, and forecasts a 2026 dividend yield of 3.2%, which it views as unattractive. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-04-29 16:25.)This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.