China Longyuan Power Group FY 2025 Margin Compression Reinforces Bearish Narratives

Simply Wall St.04-01

China Longyuan Power Group (SEHK:916) has wrapped up FY 2025 with fourth quarter revenue of about C¥8.0b and basic EPS of C¥0.016, while trailing twelve month figures show revenue of roughly C¥30.3b ...

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Over recent quarters the company has seen revenue range from C¥6.6b to C¥8.1b, with quarterly EPS moving between C¥0.016 and C¥0.23. This gives investors a clearer view of how headline growth is feeding into per share results. With trailing net profit margin at 15% compared with...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1558":"风电股","BK1154":"新能源发电业者","HK0000500386.USD":"易方达 (香港) 中国股票股息基金A 类 (累积) 美元","LU0823040885.USD":"东方汇理新兴市场焦点股票基金","BK1594":"碳中和概念股","HK0000252152.HKD":"易方达 (香港) 中国股票股息基金A 类 (累积) 港元","LU0449509016.USD":"HSBC GIF BRIC EQUITY \"AC\" (USD) ACC","LU0054450605.USD":"HSBC GIF GLOBAL EMERGING MARKTS EQ \"AD\" INC","LU0254981946.USD":"HSBC GIF BRIC MARKETS EQUITY \"AC\" (USD) ACC","LU0214875030.USD":"HSBC GIF BRIC EQUITY \"M2C\" (USD) ACC","LU0449515922.USD":"HSBC GIF GLOBAL EMERGING MARKETS EQUITY \"PC\" (USD)ACC","00916":"龙源电力","HK0000252160.HKD":"易方达 (香港) 中国股票股息基金A 类 (分派) 港元","LU0531970944.HKD":"HSBC GIF BRIC EQUITY \"AC\" (HKD) ACC"},"translate_title":"中国龙源电力集团2025财年利润率压缩强化看跌叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00916":0.9},"content_text":"China Longyuan Power Group (SEHK:916) has wrapped up FY 2025 with fourth quarter revenue of about C¥8.0b and basic EPS of C¥0.016, while trailing twelve month figures show revenue of roughly C¥30.3b and EPS of C¥0.54. Over recent quarters the company has seen revenue range from C¥6.6b to C¥8.1b, with quarterly EPS moving between C¥0.016 and C¥0.23. This gives investors a clearer view of how headline growth is feeding into per share results. With trailing net profit margin at 15% compared with a year earlier level of 18.2%, the latest numbers put the focus squarely on how sustainably China Longyuan can balance revenue scale with earnings quality. See our full analysis for China Longyuan Power Group. With the headline figures on the table, the next step is to see how these results line up with the widely held narratives about China Longyuan’s growth potential, risks, and long term profitability story. Curious how numbers become stories that shape markets? Explore Community Narratives SEHK:916 Revenue & Expenses Breakdown as at Apr 2026 AdvertisementMargins Under Pressure At 15%  Over the last 12 months, China Longyuan converted C¥30.3b of revenue into about C¥4.5b of net income, which works out to a 15% net profit margin compared with 18.2% a year earlier. Bears focus on this margin slip, and the numbers give them material points to work with:\n     Trailing EPS on a last twelve month basis is C¥0.54, which is below the C¥0.68 seen a year earlier, and lines up with the five year pattern where earnings declined on average by about 4.9% per year. Quarterly profit also looks softer, with Q4 FY 2025 net income of about C¥133 million on C¥8.0b of revenue sitting well below Q1 FY 2025 net income of roughly C¥1.9b on a similar C¥8.1b revenue base. This supports the bearish concern that profitability has been harder to sustain across the year.    Find out how skeptics frame these pressure points against the long term story in the 🐻 China Longyuan Power Group Bear Case. EPS Swings Across FY 2025  Across FY 2025, basic EPS ranged from C¥0.23 in Q1 to C¥0.016 in Q4, while trailing EPS for the full period sits at C¥0.54, so the strong first half is doing a lot of the heavy lifting for the yearly figure. Supporters of a more bullish view argue that this volatility still fits within a broader growth story, and the data gives them several talking points to lean on:\n     Revenue over the last 12 months comes in at about C¥30.3b and is forecast to grow around 8.8% per year, which is slightly ahead of the Hong Kong market forecast of 8.5% per year and lines up with the idea that the top line is still moving in the right direction. Earnings are expected to grow at roughly 17.7% per year despite recent margin pressure. This directly addresses the concern raised by the five year EPS decline and suggests that, if those forecasts hold, current trailing softness could look less severe in hindsight.    See how optimistic investors connect these swings to a longer term growth case in the 🐂 China Longyuan Power Group Bull Case. Mixed Valuation Signals At 11.4x P/E  At a share price of HK$7.00, China Longyuan trades on a P/E of 11.4x, which sits above the 9x peer average but below the 15.9x Asian renewable energy group. A DCF fair value of about HK$13.33 indicates a large gap between the modeled value and the current price. This mix of numbers creates a natural tension between bullish and bearish takes on the stock:\n     On the supportive side, the DCF fair value of HK$13.33 compared with HK$7.00 suggests the shares change hands at a large discount to that model, which lines up with the view that the market is not fully reflecting the forecast 17.7% annual earnings growth. On the cautious side, risk flags around cash generation are hard to ignore, with debt not well covered by operating cash flow and a 3.25% dividend not well covered by free cash flow. Some investors may therefore see the higher P/E versus peers as harder to justify while these balance sheet pressures remain.    Next Steps Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on China Longyuan Power Group's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move. Mixed messages on growth, margins, and valuation can trigger both optimism and caution, so move quickly, review the underlying figures in detail, and weigh how the 2 key rewards and 2 important warning signs fits with your own view of China Longyuan Power Group. See What Else Is Out There China Longyuan’s softer margins, weaker cash coverage of debt and dividends, and volatile EPS indicate that earnings quality and financial resilience are under pressure. If you want ideas with stronger balance sheets and more robust cash coverage of obligations, start comparing names in the solid balance sheet and fundamentals stocks screener (380 results) today while this is fresh in your mind.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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