HK Stock Market Move | China Longyuan Power Group Corporation (00916) rose over 6% in the afternoon, UBS pointed out that the company's first quarter performance met market expectations, and the situation of subsidy recovery has improved slightly.

China Longyuan Power Group Corporation (00916) rose more than 6% in the afternoon, with an increase of 6.39% as of the time of writing, reaching 6.66 Hong Kong dollars, with a transaction amount of 375 million Hong Kong dollars. On the news front, on April 29, China Longyuan Power Group Corporation disclosed its first quarter performance for 2026. UBS stated that the first quarter performance of China Longyuan Power Group Corporation roughly met market expectations, with a year-on-year decrease in net profit to 1.7 billion yuan, a year-on-year decrease in revenue to 7.9 billion yuan, mainly due to the weakening impact of wind power generation. However, CECEP Solar Energy's business revenue increased by 27% year-on-year, and operating cash flow also increased by 5% year-on-year to 2.9 billion yuan, reflecting slight improvement in subsidy recovery. UBS pointed out that the weak first quarter net profit was mainly due to a reduction in value-added tax and government subsidies, which were the biggest drag factors. In addition, the wind power utilization rate decreased by 11% year-on-year, partially offset by a 6% expansion in wind power capacity, while the average wind power electricity price remained largely stable. The bank expects the market to react neutrally to the company's performance, as the operating data for March already reflects weakness in the first quarter. The bank believes there are two potential catalysts in the future, including reform of renewable energy electricity price policies and faster subsidy recovery.