Improved Wind Resources a Key Boost for Longyuan’s Decent Q3; Shares Remain Undervalued

China Longyuan’s decent third-quarter 2022 results were expected, as wind resources improved during the period. According to the China Electricity Council, the nationwide wind power utilization rate rose 34 hours year over year in the third quarter, compared with a drop of 58 hours in the first half, indicating better wind resources during the quarter. We expect fourth-quarter power demand to grow steadily, and normalized wind resources should continue to support favorable growth for wind power operators. We think Longyuan’s good-quality assets, and its digitalized management platform should also help to optimize resources and improve operating efficiency through a reduced failure time of wind turbines.