[ET Net News Agency, 9 July 2018] Citi Research recommended buying major PRC wind farm
operators, namely China Longyuan Power (00916) and Huaneng Renewables (HR)(00958).
The research house said overhang from tariff cut concern causing recent share price
weakness has been lifted; while generation of existing wind farms beyond renewables energy
quotas will get green certificates instead of existing tariff subsidy, any revenue
shortfall will be compensated; effectively, the tariffs of existing wind farms would not
be cut.
In addition, Citi forecast Longyuan's and HR's net profits to be strong to +45% and +20%
yoy respectively in 1H driven by generation growths and wind farm utilization rise. It
thinks their 2018 PBs are attractive at 0.9x and 0.8x respectively with 11% and 13.9% ROE.
The research house thinks that they could be traded up to 1.2x PB. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00916 CHINA LONGYUAN
Nominal 
5.730 0.000 (0.000%) Others
09/07/2018 12:00
[I-bank focus]Citi says buying major PRC wind farm operators
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