In today’s briefing:
- China Longyuan (916 HK): Mean Reversion
- Morning Views Asia: Pertamina Geothermal Energy PT, Sunny Optical Technology Group, West China Cement
China Longyuan (916 HK): Mean Reversion
- China Longyuan Power (916 HK) should see a mean reversion of its valuations. It has rebounded 36% from the the 2024 trough, but has only gone up 0.3% YTD.
- There are three catalysts in place to drive the move: acceleration in power generation, cash flow improvement, and recovery in the wind power market.
- Its P/B is at a 40% discount to average, and a return to such level will generate a 60% upside. Even after reversion, its PER of 7.8x is not stretched.
Morning Views Asia: Pertamina Geothermal Energy PT, Sunny Optical Technology Group, West China Cement
Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
