{I-bank focus}Macquarie ups China Longyuan (00916) to HK$37

    Macquarie Research lifted its target price for China Longyuan Power (00916) to HK$37 from HK$ and reiterated its "outperform" rating.
  The research house said China Longyuan announced the issuance of A-shares to absorb and merge with sister company Pingzhuang Energy (Shenzhen code: 000780). Meanwhile, some renewable assets from parent company CHN Energy will be injected in exchange for the
existing asset/liabilities of Pingzhuang Energy.
  Macquarie believes the A-share issuance will help improve its capital structure and pave the way for >4GW installation (wind + solar) during 2021-25 in terms of both lower leverage and higher upside for annual capex. It believes the market will view this as a positive trigger for re-rating the stock
  Macquarie raised its 2021/22 EPS forecasts by 2%/8%.