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DBS: China Longyuan Power – BUY TP HK21.00

Lower turbine prices to improve ROE

• Wind turbine ASP cuts should drive IRR improvements via CAPEX savings
• Beneficiary of policy support for wind farm upgrades 
• Adding c.2GW of wind capacity upon completion of transaction with Pingzhuang Energy and CHN 
• Latest positives not yet in price, reiterate BUY on higher TP of HK$21

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