601012:SSELONGi Green Energy Technology Co., Ltd. Class A Analysis

LONGi Green Energy (601012) is trading at CNY 12.68, well above its discounted cash‑flow fair value of 8.62, indicating an overvalued price level. Technical metrics reinforce a bearish outlook: the stock sits below its 20‑day (14.23), 50‑day (16.01) and 200‑day (17.85) moving averages, RSI is deep in oversold territory at 23.2, MACD is bearish, and volume is on a decreasing trend, with price hovering just above the identified support of 12.22 and far from the resistance at 17.04. High 30‑day volatility (~30.8%) and a recent max drawdown of over 45% further underscore short‑term downside risk.
Fundamentally, the company posted a 18% revenue decline to CNY 67.9 bn, negative gross (‑1.1%) and operating margins (‑12.5%), and a trailing EPS of ‑0.91 despite a modest forward EPS estimate of 0.45. While cash reserves are sizable (CNY 52.8 bn), debt remains high (CNY 37.1 bn, debt‑to‑equity 71.5%), and ROE is negative, reflecting ongoing profitability challenges. No dividend is paid, and recent news highlights persistent losses amid industry overcapacity, suggesting that the current valuation does not adequately compensate for the financial and operational headwinds.