Longyuan (0916): Oversold territory with emerging catalyst ahead

研报英文原文证据摘录

Longyuan (0916): Oversold territory with emerging catalyst ahead

Asia Pacific Equity Research

19 July 2026

▲Overweight

Longyuan (0916) Previous:0916.HK, Neutral916 HK

Price (17 Jul 26): HK$5.29

Oversold territory with emerging catalyst ahead

Price Target (Dec-26): HK$7.00

Longyuan trades at 0.5x FY27E P/BV after having underperformed the China

HSCEI Index by 11% YTD, at a 15-year trough. We see an improving APAC Utilities & Renewables |

outlook for 2027. We expect utilization hours to rebound as curtailment Sustainable Investing

ACeases, supported by faster ESS installation, continued grid capex Alan Hon

growth, and slower renewables additions in 2026. Power prices should (852) 2800-8573

stabilize from 2027 after the full FY effect on power price liberation. alan.hon@jpmorgan.com

Data center green power mandates and more “green power computation Daqi Jiao

coordination” projects in 2H could lift sentiment. We upgrade to OW (852) 2800-8595 daqi.jiao@jpmorgan.com

with an unchanged PT of Hkd7.0. J.P. Morgan Securities (Asia Pacific) Limited/ J.P.

Morgan Broking (Hong Kong) Limited

• At trough valuation of 0.5x P/BV: Longyuan trades at 0.5x FY27E

P/BV, a 15-year trough seen only in 1Q20 and 1Q24. Those lows Key Changes (FYE Dec)

reflected sentiment and liquidity concerns. Despite curtailment and Prev Cur Δ

Adj. EPS - 27E (Rmb) 0.55 0.59 7.2%

weaker power prices under liberalization, its strategic role in China’s

evolving energy system is strengthening, making its valuation Style Exposure

compelling.

• Improving outlook in 2027: We expect wind farm utilization hours

to rebound from the 2026 trough as curtailment eases. Recent de-

coupling of wind speed and generation likely reflects curtailment

from rapid wind and solar build-out. Faster energy storage system