Assessing China Longyuan Power Group (SEHK:916)’s Valuation After Strong November 2025 Renewable Output Growth

China Longyuan Power Group (SEHK:916) just posted upbeat November 2025 production numbers, with total generation up 14% year on year as wind output increased and PV generation rose on continued renewable expansion.

See our latest analysis for China Longyuan Power Group.

Even with the upbeat November numbers, the share price has been under pressure recently, with a 90 day share price return of minus 12.30%. However, the 5 year total shareholder return of 7.15% suggests the longer term renewables story is still intact, and momentum could rebuild if operational gains keep translating into earnings growth.

If this kind of renewables driven momentum has your attention, it is also worth exploring fast growing stocks with high insider ownership for other fast moving opportunities that committed insiders are backing.

With the shares down over the past quarter but trading at a notable discount to analyst targets and intrinsic value estimates, should investors treat China Longyuan as undervalued or assume the market has already priced in its future growth?

Price-to-Earnings of 11.2x: Is it justified?

On valuation screens, China Longyuan stands out as undervalued, with our models suggesting it trades at a meaningful discount despite the recent share price slide.

The key lens here is the price to earnings ratio, which compares what investors pay per share to the company’s current earnings per share. For a mature but still growing renewables player like China Longyuan, this multiple helps signal whether the market is adequately pricing in its earnings power and forecast growth.

China Longyuan currently trades on a price to earnings ratio of 11.2 times, which sits below both the Asian renewable energy industry average of 16.4 times and the peer group average of 12.2 times. Relative to an estimated fair price to earnings ratio of 13.1 times, the current discount looks even starker, implying room for the market to re rate the shares closer to that fair level if earnings growth unfolds as projected.

Explore the SWS fair ratio for China Longyuan Power Group

Result: Price-to-Earnings of 11.2x (UNDERVALUED)

However, risks remain, including policy shifts on renewable subsidies and potential project execution delays that could pressure margins and dampen investor confidence.

Find out about the key risks to this China Longyuan Power Group narrative.

Another View: Cash Flows Tell a Similar Story

Looking beyond earnings multiples, our DCF model suggests even deeper value, with China Longyuan trading around 27.4% below its fair value estimate of HK$9.23 versus the current HK$6.70. If both earnings and cash flow signals indicate potential upside, could the market be underestimating the likelihood of a recovery?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out China Longyuan Power Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 914 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own China Longyuan Power Group Narrative

If you see the story differently or want to dig into the numbers yourself, you can quickly build a personalized view in just minutes: Do it your way.

A great starting point for your China Longyuan Power Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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