0805 GMT - China Longyuan Power Group faces the risk of lower electricity rates in 2025 from more market-based sales and higher competition, though its shares are supported by an undemanding valuation at current levels, Citi analyst Pierre Lau says. He assumes a 4% drop in rates next year, but notes that the company may see an upside if it can collect on substantial subsidies building up in receivables. He says China Longyuan's 7.5x price-to-forward-earnings valuation looks inexpensive; PE ratios in 2022 and 2023 were 10.7x and 8.5x, respectively. Lau maintains a buy rating on the stock and a target price of HK$8.00. Shares are up 1.3% at HK$6.81, bringing year-to-date gains to 15%. (ben.otto@wsj.com; @benottoWSJ)
(END) Dow Jones Newswires
December 09, 2024 03:05 ET (08:05 GMT)
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