DBS Raises China Longyuan (00916) Target to HK$7.20 Amid Flat Growth Outlook, Maintains "Hold"

Stock News
Jul 29

DBS has revised its price target for China Longyuan Power Group Corporation Limited (00916) to HK$7.20 while retaining a "Hold" rating. The adjustment follows an assessment of the company's moderate growth trajectory in renewable energy operations. Despite China's accelerated renewable capacity installations, analysts observed limited near-term catalysts for substantial earnings expansion. The report highlights operational challenges including grid connection delays and regional power consumption constraints impacting utilization rates. Current valuation metrics are deemed to adequately reflect the company's steady but unexceptional development prospects. DBS maintains a neutral stance pending clearer visibility on margin improvements and policy-driven growth accelerators.

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