HK Stock Market Move | China Longyuan Power Group Corporation (00916) rose more than 4% in the final trading session. Institutions pointed out that the current valuation of the company is very attractive and the abandonment rate of wind power is expected to improve within the year.

Closing up over 4% at the end of the trading day, China Longyuan Power Group Corporation (00916) rose 4.54% to HK$5.53, with a market capitalization of HK$1.37 billion. On the news front, JP Morgan released a research report pointing out that the stock price of China Longyuan Power Group Corporation has underperformed the national index by about 11% since the beginning of the year. The current valuation level is only equivalent to 0.5 times the forecasted P/B ratio for fiscal year 2027, at a low level in the past 15 years. JP Morgan believes that, despite facing pressures from rising wind abandonment rates and market-oriented electricity price reforms, the company's strategic role in the national energy system is strengthening, making its valuation extremely attractive. JP Morgan expects that with the accelerated installation of energy storage systems from 2025 to 2026, continued growth in grid capital expenditure in 2026, and a slowdown in new energy installation growth in 2026, China Longyuan Power Group Corporation's wind abandonment rate is expected to improve, and wind farm utilization hours will rebound from their low point in 2026. In terms of electricity prices, the market-oriented policies for wind and solar electricity prices will be fully implemented in the first quarter of 2026. After experiencing the impact of the first full year, it is expected that the downward pressure on electricity prices will ease starting from 2027.