[ET Net News Agency, 6 December 2018] Citi Research thinks China's wind farm operators
are attractive for low valuations, being 1 SD below historical mean on PER and PB.
The research house said the valuations might reflect concerns of (1) no rise in wind
farm utilization in the run-up to April 2019; (2) lower-than-planned new capacity due to
slow connections by grids; and (3) delays in the collection of subsidies.
The overhang from new renewable energy quotas and green certificate policy has been
removed with the third and final consultation paper published without much impact. Citi
said Longyuan is its top pick among PRC wind farm operators for more capacity growth and a
healthier balance sheet than its peers. Citi maintained its ratings and target prices for
the counters in the sector as follows:
Name Rating Target Price
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China Longyuan (00916) Buy HK$8.00
Huaneng Renew. (00958) Buy HK$2.90
Datang Renew. (01798) Buy HK$1.87
China Suntien (00956) Buy HK$3.00
Goldwind (02208) Neutral HK$7.50
High Speed (00658) Sell HK$6.50

(KL)