JP Morgan: Second-quarter performance of Chinese clean energy companies shows a trend of differentiation, raising target prices for DATANG RENEW (01798), Goldwind Science & Technology (02208), and China Longyuan Power Group Corporation (00916).

JPMorgan released a research report saying that they noticed that the performance of China Clean Energy Fuels Corp. in the second quarter is showing a divergent trend. The bank raised the target price of DATANG RENEW (01798) from 2 Hong Kong dollars to 2.2 Hong Kong dollars with a "neutral" rating; raised the target price of Goldwind Science & Technology (02208) from 7.4 Hong Kong dollars to 7.7 Hong Kong dollars with a "buy" rating; raised the target price of China Longyuan Power Group Corporation (00916) from 7.2 Hong Kong dollars to 7.6 Hong Kong dollars with a "buy" rating. The bank stated that despite strong fundamentals, due to project scheduling and the high base effect caused by last year's disposal income, the performance of Tianfeng Wind Power and Ningbo Orient Wires & Cables (603606.SH) in the second quarter showed weak year-on-year performance. Some CECEP Solar Energy manufacturers have already announced weak second quarter results, and the market is closely watching the "anti-burnout" initiative. In this field, Daqo New Energy Corp Sponsored ADR (DQ.US) is the bank's preferred target. The bank believes that Sungrow Power Supply (300274.SZ) and Arctech Solar Holding (688408.SH) may show positive profit momentum. Regarding renewable energy power operators, JPMorgan stated that the outlook for electricity prices varies depending on fuel type and assets, and believes that China Yangtze Power (600900.SH) has a more resilient electricity price, while CGN POWER (01816) and Huaneng Lancang River Hydropower Inc. (600025.SH) may face higher electricity price risks, which could lead to a 15% year-on-year decline in second quarter profits. Considering the expected downward trend in electricity prices in 2026 and the stock price approaching the bank's previous target price, JPMorgan downgraded the rating of CGN POWER from "buy" to "neutral". The bank maintains a "buy" rating for Longyuan Power as the impact of Provincial Document 136 is not as severe as previously feared.