JP Morgan: Downgrades target prices for DATANG RENEW (01798) and China Longyuan Power Group Corporation (00916), preferring the latter more.

JPMorgan Chase released a research report, stating that the target price of DATANG RENEW(01798) has been lowered from 1.95 Hong Kong dollars to 1.85 Hong Kong dollars, with a "neutral" rating. At the same time, the target price of China Longyuan Power Group Corporation(00916) has been lowered from 8.1 Hong Kong dollars to 7.05 Hong Kong dollars, with a "hold" rating. The bank prefers China Longyuan Power Group Corporation over DATANG RENEW because the former has a better balance sheet, strong operational records, and promising future asset investments. The report mentions that there may be trading opportunities in wind power stocks by the end of the year. Due to lower power generation in July and August this year, the performance of wind power companies in the third quarter may become a negative catalyst. The bank believes that power generation may recover in the fourth quarter, as the base for wind speed is relatively low compared to the same period last year. Despite issues such as power limitations and pricing risks in mainland China's renewable energy sector, wind power and CECEP Solar Energy power plants are not favored. However, if regulatory authorities intervene to address operational challenges, the current valuation, which is equivalent to a market-to-book ratio of 0.6 times the estimated 2025 fiscal year, may provide investors with upward potential.