HK Stock Market Move | China Longyuan Power Group Corporation (00916) rose more than 6% in morning trading; Q3 wind power generation decline narrowed significantly; net decrease in receivables financing

China Longyuan Power Group Corporation (00916) rose more than 6% in morning trading. As of press time, it was up 5.91% at HK$5.47, with a turnover of HK$103 million. On the news front, China Longyuan Power Group Corporation released its results, with third-quarter operating revenue of RMB6.44 billion, down 4.58% year-on-year; net profit was RMB442 million, down 57.84% year-on-year and down 44% quarter-on-quarter. Huatai noted that the year-on-year decline in single-quarter profit widened compared with Q2, due to wind power volume and tariffs still falling year-on-year, depreciation and amortization rising with installed capacity growth, and the cancellation of the VAT immediate refund policy leading to a sharp pullback in other income. The bank also said that the decline in Q3 wind power generation narrowed significantly, and it judges that the impact of weak wind resources is weakening at the margin. If wind resources recover normally in Q4, the drag on profitability from the power volume side is expected to narrow further. In addition, receivables financing turned to a net decline for the first time in Q3, indicating that subsidy recovery has exceeded new recognition in the current period, and existing subsidies have begun to enter a stage of substantive digestion, with the balance sheet expected to repair.