China Longyuan Power Group Corporation Limited (0916.HK) stock analysis

In our weekly check, China Longyuan Power Group Corporation Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8.

About China Longyuan Power Group Corporation Limited

China Longyuan Power Group Corporation Limited is an Utilities company (Renewable Utilities) based in China, listed on HKSE as 0916.HK.

What our checks show for 0916.HK

Red flags

• Net debt is 11.5x a year of EBITDA (debt/equity 1.73). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 2 times: a weak year could make the payments hard.
• The net margin fell by 9.9 points over 5 years, to 10%: the company keeps less of each sale as profit.
• The gross margin fell by 4.2 points, to 30.7%: costs are rising faster than prices.
• Revenue fell 9.7% a year over the last 3 years.
• The dividend takes 113% of profit: little cushion if profit falls.
• The stock has fallen as much as 77% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3.4%.

Warning signs

• Earnings per share fell 15.4% a year over the last 3 years.
• Net profit fell 16.8% a year over the last 3 years.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 8.63x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 42.3% a year over the next years.
• Analysts expect the net margin to improve by 7.5 points from today's 10%.
• Free cash flow is 22.5% of revenue: cash for dividends, buybacks or growth.
• The price is 12.2 times earnings (P/E), reasonable for its growth.
• A large company: market value $10.35 billion.

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Questions

What grade does China Longyuan Power Group Corporation Limited (0916.HK) have?

In our weekly check, China Longyuan Power Group Corporation Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 3, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0916.HK stock?

This week's biggest flags for China Longyuan Power Group Corporation Limited: High debt, Weak interest cover, Margins falling. In total 11 of 25 checks show a warning or a red flag.

What does China Longyuan Power Group Corporation Limited do?

China Longyuan Power Group Corporation Limited is an Utilities company (Renewable Utilities) based in China, listed on HKSE as 0916.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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