Jinwu Financial News | Longyuan Electric Power (00916) fluctuated and weakened. As of press release, it fell 3.45% to HK$5.59, with a turnover of HK$0.186 billion.
According to the news, according to the latest data from Longyuan Electric Power, the net profit forecast for this year and next year was lowered by 4.1% and 9.2%, respectively, due to the reduction in electricity prices due to competition and delays in the completion of new production capacity. The bank lowered the target price of Longyuan Electric Power by 10% to HK$7.2. The “buy” rating is based on its predicted price-earnings ratio of 7.1 times this year and the market account ratio of 0.6 times, and the valuation is cheap.
The bank predicted that Longyuan Electric Power's net profit last year would increase by 2.9% to 6.381 billion yuan, and impairment losses for the fourth quarter decreased year by year, and improved from the first three quarters. However, the bank's net profit forecast for the company last year was 5% lower than the market forecast, and it is expected that it may not meet the standards. At the same time, it is expected that after the company announces the earnings season in March, the market will lower its profit forecast for this year and next year.
