Company Reports

In the first half of 2026, net profit at China Longyuan, China Three Gorges Renewables, and Datang Renewable fell 28%, 68%, and 59% year over year, respectively.

Founded in 1993, Longyuan is a pioneer in China’s wind power development. This first-mover advantage, coupled with a capable management team, enabled the firm to secure better wind farm locations, which helps to maximize wind farm utilization rates. Longyuan’s annual wind power utilization hours have consistently outperformed the industry average in China by more than 50 hours during the past decade. Longyuan is the world’s largest wind power producer with consolidated installed wind capacity of about 32.1 gigawatts as of end-2025.

China power utilities under our coverage have fallen more than 15% on average year to date, reversing a 3% gain in the first quarter, when optimism over artificial intelligence-driven data center power demand boosted sentiment.

China Three Gorges Renewables’ 2025 net profit fell 39% year on year, while its first‑quarter 2026 net profit declined 57%. Datang Renewable’s (including interest on perpetual notes and bonds) and China Longyuan’s first‑quarter net profit fell 51% and 14%, respectively.

Excluding the impact of the disposal of its coal‑fired power business, China Longyuan’s 2025 net profit fell 22% year on year, while the dividend payout ratio remained stable at around 30%.

Founded in 1993, Longyuan is a pioneer in China’s wind power development. This first-mover advantage, coupled with a capable management team, enabled the firm to secure better wind farm locations, which helps to maximize wind farm utilization rates. Longyuan’s annual wind power utilization hours have consistently outperformed the industry average in China by more than 50 hours during the past decade. Longyuan is the world’s largest wind power producer with consolidated installed wind capacity of about 32.1 gigawatts, or GW, as of end-2025.

Share prices of the China power utilities under our coverage have fallen by about 3% on average since late October, following the release of third-quarter results. This contrasts with an average 6% rise in the third quarter due to accelerated subsidy collections.

China Longyuan's cumulative nine-month net profit declined 20% year over year despite a 14% rise in power generation, mainly due to a lower average tariff, higher operating costs, and the absence of contributions from the disposed coal power segment.

Founded in 1993, Longyuan is a pioneer in China’s wind power development. This first-mover advantage, coupled with a capable management team, enabled the firm to secure better wind farm locations, which helps to maximize wind farm utilization rates. Longyuan’s annual wind power utilization hours have consistently outperformed the industry average in China by more than 50 hours during the past decade. Longyuan is the world’s largest wind power producer with consolidated installed wind capacity of about 30.4 gigawatts, or GW, as of end-2024.

China Longyuan's first-half net profit was down 14% year over year, mainly attributable to a lower average tariff, reduced wind resources, increased operating costs, and the disposal of its coal power segment. The firm announced its first interim dividend of CNY 0.10 per share.

Founded in 1993, Longyuan is a pioneer in China’s wind power development. This first-mover advantage, coupled with a capable management team, enabled the firm to secure better wind farm locations, which helps to maximize wind farm utilization rates. Longyuan’s annual wind power utilization hours have consistently outperformed the industry average in China by more than 50 hours during the past decade. Longyuan is the world’s largest wind power producer with consolidated installed wind capacity of about 30.4 gigawatts, or GW, as of end-2024.

China Longyuan's first-quarter net profit attributable to equity holders was down 22% year over year, mainly due to higher operating expenses and the absence of earnings contributions from its divested coal power businesses.

Founded in 1993, Longyuan is a pioneer in China’s wind power development. This first-mover advantage, coupled with a capable management team, enabled the firm to secure better wind farm locations, which helps to maximize wind farm utilization rates. Longyuan’s annual wind power utilization hours have consistently outperformed the industry average in China by more than 50 hours during the past decade. Longyuan is the world’s largest wind power producer with consolidated installed wind capacity of about 30.4 gigawatts, or GW, as of end-2024.

The share prices of Chinese power utilities under our coverage retreated by approximately 9% on average on April 7 due to weakened market sentiment amid uncertainties surrounding President Donald Trump's tariff policies.

China Longyuan’s 2024 net profit rose by 2% to CNY 6.4 billion. The average wind tariff also grew 2%, contrary to the declining trend observed among peers, due to a higher proportion of electricity sales from high-tariff projects.

Founded in 1993, Longyuan is a pioneer in China’s wind power development. This first-mover advantage, coupled with a capable management team, enabled the firm to secure better wind farm locations, which helps to maximize wind farm utilization rates. Longyuan’s annual wind power utilization hours have consistently outperformed the industry average in China by more than 50 hours during the past decade. Longyuan is the world’s largest wind power producer with consolidated installed wind capacity of about 30.4 gigawatts, or GW, as of end-2024.

After a short rally following China's stimulus announcement on Sept. 24, share prices of our China power utilities coverage retreated by about 20% on average since early October, as the market is likely disappointed with the lack of further government supportive measures.

China Longyuan's cumulative nine-month net profit attributable to equityholders was down 11% year over year. Third-quarter earnings were aided by a more than CNY 500 million disposal gain on its equity interest in Jiangyin Sulong.

We cut our fair value estimates of China Longyuan and Datang Renewable by 23% and 15%, respectively, to HKD 7.60 and HKD 1.62 per share to account for their weak first half. Overall, we expect to see slower earnings growth due to rising curtailments and lower tariffs. Consequently, we reduce our 2024-26 earnings forecasts for Longyuan by 22%-30% and for DR by 6%-24%. After the revisions, we think DR is overvalued, given its poorer asset quality that will continue to see higher curtailment risk. Meanwhile, Longyuan is still undervalued—although we think its recent run of underperforming expectations could sideline investor interest in the near term. Progress on subsidy settlements remains slow, but we expect improved collection in the second half, in line with the historical trend.

Founded in 1993, Longyuan is a pioneer in China’s wind power development. This first-mover advantage, coupled with a capable management team, enabled the firm to secure better wind farm locations, which helps to maximize wind farm utilization rates. Longyuan’s annual wind power utilization hours have consistently outperformed the industry average in China by more than 50 hours during the past decade. Longyuan is the world’s largest wind power producer with consolidated installed wind capacity of about 27.8 gigawatts, or GW, as of end-2023.