[ET Net News Agency, 13 June 2018] Credit Suisse raised its target price for Longyuan
Power (00916) to HK$9 from HK$8.1 to reflect the larger growth potential post grid-parity,
and retained its "outperform" rating.
The research house forecast Longyuan's utilisation to achieve 2,250 hours in FY2018,
supported by continued curtailment relief, which should remain the driver for earnings
expansion this year. Better subsidy collection and cash flow boost for new projects under
the upcoming green certificate scheme in 2H could be another catalyst.
Post-parity in FY2020, Credit Suisse forecast Longyuan to restore growth with 2.5GW
annual capacity addition, which could be cash flow-rich and subsidy-free. It added that
Longyuan's current valuation remains attractive at 0.9x FY2018 P/B (1.2x historical mean)
on the back of 11% ROE. (KL)
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00916 CHINA LONGYUAN
Nominal 
5.720 -0.250 (-4.188%) Others
13/06/2018 11:31
[I-bank focus]CS raises Longyuan Power (00916) to HK$9
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