HK Stock Market Move | China Longyuan Power Group Corporation (00916) rises over 3% as third-quarter wind power generation improves; JP Morgan says the worst of the company's earnings reset may be over.

China Longyuan Power Group Corporation (00916) rose over 3%, up 3.15% as of press time, at HK$5.41, with a turnover of HK$122 million. On the news front, JP Morgan's latest research report pointed out that China Longyuan Power Group Corporation's third-quarter wind power generation was roughly flat year-on-year, an improvement from the 7% year-on-year decline in the first half; CECEP Solar Energy's power generation rose 15% year-on-year. The bank believes that despite the stabilization in power generation trends, actual electricity prices remain under pressure due to the implementation of Document 136. JP Morgan continued that China Longyuan Power Group Corporation's third-quarter profit is expected to fall about 25% year-on-year to approximately RMB 830 million, a slight improvement from the 28% year-on-year decline in the first half, supported by stabilizing wind power generation and continued strong power generation from CECEP Solar Energy. JP Morgan stated that the worst of the company's earnings reset may be over, and pressure on actual electricity prices is expected to ease after the first full year of power marketization reset in 2026, supporting a gradual recovery in earnings fundamentals in 2027, with operating fundamentals expected to gradually improve over time.