0418 GMT - China Longyuan Power is likely to face challenges as the renewable-energy tariff may fall further in 2025, according to Citi analysts in a research note. The analysts expect a wider cut to the renewable tariff in 2025 than in 2024 on more market-based sales and spillover effects from tariff declines for the coal-fired market in Guangdong and Zhejiang provinces. For every additional percentage-point cut to on-grid wind and solar tariff, Citi projects the company's net profit to fall 2.6% from its base case. The analysts maintain a buy rating on the stock with a target price of HK$5.58. Shares are 2.0% higher at HK$5.70. (tracy.qu@wsj.com)
(END) Dow Jones Newswires
January 13, 2025 23:18 ET (04:18 GMT)
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