Tue Nov 19, 2019 02:56
English | 繁體 | 简体
Click here to toggle text size
Daiwa cuts China Longyuan (00916) target to $5.4
12 Jul 2019
(Infocast News) Daiwa Capital Markets has downgraded China Longyuan Power (00916) from Outperform to Hold and cut price target on the stock from HK$5.75 to HK$5.40. The brokerage expects the company's balance sheet to remain stretched, leading to slower EPS growth on rising finance costs over 2019-2021.

After correcting by 16% between mid-March and mid-June, China Longyuan Power's share price has rebounded by 3%. However, Daiwa believes subsidy receivables are still a concern as it expects China Longyuan Power's capital expenditure to rise from RMB7.8 billion in 2018 to RMB12.5-13.5 billion to add 1.2-1.6 GW of new wind power capacity pa in 2019-2021 due to rush installations before the expiry of subsidy tariffs. Daiwa expects China Longyuan Power's free cash flow falling rapidly in 2019-2021 given the need for significant working capital amid the upcoming GC policy in 2020.

Daiwa prefers wind power equipment maker Xinjiang Goldwind Science & Technology (02208) in 2019-2021.

© Copyright Quamnet. All rights reserved. Republish the contents in whole or in part other than the authorized methods below, Quamnet reserves the right to proceed legal action.
Market Update
A founding member of:
China Tonghai IR:
Sitemap  |  About Us  |  Contact Us  |  Disclaimers     English | 繁體 | 简体  
Tonghai Financial:
China Tonghai International Financial Limited  |  China Tonghai Capital  |  China Tonghai Securities
Oceanwide Financial Management   |  Quamnet
Information of TonghaiIR (Investor Relations):
[Hong Kong Listed Company Information] [Financial News] [Announcement Alerts] [Free Delayed Stock Quote] [Chart]
[Hong Kong stock information]

TonghaiIR (Investor Relations) Services:
[Listed Companies Information] [Listed Companies Financial Information] [Listed Companies Announcements]
[Listed Companies Circulars] [Listed Companies News] [Press Releases] [Listed Companies Event Calendar]
[Listed Companies Presentations] [Proxy Forms]

China Tonghai IR (Investor Relations):
[Securities Firms] [Fund Houses] [Venture Capitals] [Financial Public Relations Agencies] [Financial Printers]
Investor Relations Dictionary:
[Listed Companies Result Announcement] [Financial Report] [Interim Report] [Annual General Meeting]
[Extraordinary General Meeting] [Board Meeting] [Annual Report] [Contact Listed Companies Investor Relations]
[Company Information Sheet] [Next Day Disclosure Return] [News Release] [IPO] [Prospectus] [Stock Quote] [Trading Volume]