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Renewable Energy
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Bintang
Elite |
01-Dec-2010 17:11
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After breaking the neckline of the big head n shoulder formation at 23 cents , its momemtum becomes weak , Now the neckline n all moving averages become resistances . The downside target can easily reach .
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des_khor
Supreme |
01-Dec-2010 15:05
Yells: "Tell me who is the God or MFT from this forum??" |
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Meaning meaningless !!
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kiasiDBT
Veteran |
01-Dec-2010 14:19
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Wah!!! u think u are GODLY Bintang meh ... u may be rite once or a few times but not everytime, I think your TA skilss are still mediocre lah, u seems to do not know tat not all gaps must be closed, u still need to brush up on your TA lah..
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Bintang
Elite |
01-Dec-2010 12:52
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It would fill the gap at 17.5 cents n may not go up so soon because the upside is limited .
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kiasiDBT
Veteran |
01-Dec-2010 10:37
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U always like to use the word "would" n u had been proven wrong b4 if I remember correctly, in any case, remember, nothing is guaranteed, unless u are GOD, remember we are mere mortals, so "may" should be a better word and tat it "may not" as not all gaps must be compulsory covered. Even if it does cover the gap, so wat, downside is limited but upside is great, so reward much greater than the risk....
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Bintang
Elite |
01-Dec-2010 09:45
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RenewableEn would go down to fill the gap at 17.5 cents .
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kiasiDBT
Veteran |
01-Dec-2010 09:23
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Recent price drop unwarranted Renewable Energy Asia Group - Return to black for HY11 From Philip Capital: Renewable Energy Asia Group - Return to black for HY11 Revenue for HY11 up 369.6% y-y to RMB193.1m, net profit up to RMB11.7m • HY11 results were within our expectations • Revenue will be boasted by an additional production line and wind farm • Maintain Buy recommendation and lowering our fair value slightly to S$0.45 we will see improvement in the margins after the start-up phase and the addition of 1 production line to meet the delivery schedule of its order book. Outlook for the second half of the year remains bright; its first wind farm which started operations in Oct’10 will contribute to its earnings and possible contract wins for its manufacturing arm. Recent price drop unwarranted After the successful placement of shares of REA at S$0.30, its share price has dropped about 30% to close at S$0.21 on 12th November 2010. We feel that this drop is unwarranted as the fundamental business is still doing very well and they are expected to record net profits of RMB47.5m for FY11E reversing from a loss a year ago. Its EPC and manufacturing segment will likely see more contracts from China Datang as China Datang renewable energy arm is expected to list at the end of the year. Second half of the year will also see the likely renewal of annual master contract with the European off-shore turbine manufacturer. Agreement to develop a 1200MW wind farm in Jiuquan, Gansu Province REA announced that it has entered into an agreement with the Jiuquan government to develop a wind farm of up 1,200MW in capacity over 10 years in two phases. The Jiuquan government will provide the land resources and infrastructure for the wind farm project. REA will also invest in a local production facility to produce wind turbine components and its products will be given first consideration to other wind farms operators in the city. The project will also involve other renewable energy sources like solar, hydropower and biomass power generation facilities. A wind farm of such scale requires large amount of capital and it can easily cost about RMB 9b to develop into its full capacity. We expect REA to start developing the wind farm in phases from Apr’11 once they received all the necessary approvals. Valuation and Recommendation We are maintaining our Buy recommendation and lowering our fair value slightly to S$0.45 to reflect the higher interest rates in China. REA provide Singapore investors a unique opportunity to participate in the fast growing renewable energy sector in China. We are valuing REA based on SOTP (unchanged), 9X FY12E expected earnings on its EPC and manufacturing business, using DCF model to value its wind farm business. Its manufacturing and EPC business will propel its growth for the first 2 years and they are likely to announce more wind farm equipment manufacturing contracts as more offshore wind farms are being developed around the world especially in China. However we would also like to see them disposing its fastening business which will likely result in a re-rating of REA. Our fair value translates to PE of 11X FY12E earnings which is still relatively cheap compared to its closest peer who is currently trading at a PE of 23.2X. Placement exercise in Sept’10; a positive for REA Group This placement exercise will allow REA Group to kick start its wind farm operations business providing the capital to buy the 49% stake in 49.5MW wind farm in Huaishuo as announced earlier. The capital raised will also be used for 1) working capital 2) partial payment for its manufacturing facilities that they are currently renting and 3) develop the wind farm concessions on hand. Development of offshore wind farm sector Huaneng Renewable Energy recently announced that it will invest RMB 6b in a 300MW offshore wind farm project located in Dafeng, Jiangsu Province. This project will likely enhance offshore wind farm equipment manufacturing capability and provide officials with a better idea on setting the laws for offshore wind farm development. The relevant authorities also plan to award another 4 projects with a total installed capacity of 1,000MW to winning bidders. The offshore wind farm projects are located in Binhai and Sheyang, Jiangsu Province. We think that these developments bodes well for REA Group as they currently has 3,000MW of offshore wind farm concession on hand which they could start developing when formal laws and feed-in tariffs are determined by the authorities |
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kiasiDBT
Veteran |
24-Nov-2010 14:01
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U always like to use the word "would" n u had been proven wrong b4 if I remember correctly, in any case, remember, nothing is guaranteed, unless u are GOD, remember we are mere mortals, so "may" should be a better word and tat it "may not" as not all gaps must be compulsory covered. Even if it does cover the gap, so wat, downside is limited but upside is great, so reward much greater than the risk....
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Bintang
Elite |
24-Nov-2010 11:46
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RenewableEn would go down to fill the gap at 17.5 cents .
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kiasiDBT
Veteran |
24-Nov-2010 10:57
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U always like to use the word "would" n u had been proven wrong b4 if I remember correctly, in any case, remember, nothing is guaranteed, unless u are GOD, remember we are mere mortals, so "may" should be a better word.
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kiasiDBT
Veteran |
24-Nov-2010 10:48
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From DMG: Buy Recommendation TP: 0.385 Wind farm operation begins Acquisition of the entire stake in Nantong Huaishuo Investment (NHI). Renewable Energy Asia Group’s (REAG) wholly-owned subsidiary, Renewable Energy Asia (China) Co Ltd (REA), has entered into a Sale and Purchase Agreement (SPA) with Jiangsu Maritime Engineering Services (JMES) to purchase the latter’s 100% stake in NHI for RMB48m. NHI owns 49% stake in Datang Baotou Asia Electricity Co (DBE), which is the developer and operator of the 49.5MW capacity wind farm in Huaishuo, Inner Mongolia. The remaining 51% stake in DBE is owned by China Datang Corporation, the second largest power generator in China. Given that our previous forecast has already factored in contributions from DBE, we are maintaining our earnings estimates and TP of S$0.385. Maintain BUY. Completion of acquisition of NHI in the next five days. With the expected completion of NHI in the next one week, REAG will be able to benefit from DBE’s wind farm which has started operations in mid-Oct 2010. We have already factored in RMB1.3m contributions from the 49% stake in DBE to REAG’s FY11F PATMI. This is based on assumption of 1,000 operational hours during Oct 2010 – Mar 2011. Estimated acquisition forward P/E is 10-12x. Assuming a full year operational hours of 2,200 hr for DBE’s wind farm and net margin assumptions of 15%-18%, the PATMI contributions to REAG would be RMB4.1m-RMB4.9m. Based on this estimated PATMI contributions, the RMB48m consideration implies a forward P/E of 10x-12x, which is at a 30%-40% discount to listed wind farm power generators’ average forward P/E of 17x. (China Longyuan: 19x FY11F consensus PATMI; Hong Kong Energy: 15x FY11F consensus PATMI). |
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jonasljk
Member |
23-Nov-2010 16:25
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i ran road already hahha | ||||
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Bintang
Elite |
23-Nov-2010 16:18
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It is on its way to 17.5 cents .
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bsiong
Supreme |
22-Nov-2010 12:55
Yells: "The Greatest Wealth is Health" |
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Renewable Energy Asia Group has entered into an agreement to acquire 49% of a completed wind farm in Huaishuo town in Baotou , Inner Mongolia . The RMB48 million deal involves the acquisition of Nantong Huaishuo Investment Co., Ltd. The Huaishuo wind farm, which began generating electricity in October 2010, has a total capacity of 49.5 MW, and will allow REA to recognize income generated from its operations almost immediately. Nantong Huaishuo currently owns 49% of Datang Baotou Asia Electricity Co., Ltd which is the developer of the Huaishuo wind farm. The remaining 51% is held by China Datang Renewable Power Co., Ltd, a subsidiary of China Datang Corp, the PRC’s largest state-owned power producer by installed capacity. The acquisition will be funded by the proceeds of REA Group’s recent share placement, and is expected to be completed within 5 working days.
/ps |
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kiasiDBT
Veteran |
21-Nov-2010 01:14
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If anyone is interested in reading their FY2010/11 H1 results... http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_1772FBB44367A22A482577DA0025A674/$file/REA1HFY2011resultsannouncement.pdfhttp://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_1772FBB44367A22A482577DA0025A674/$file/REA1HFY2011resultsannouncement.pdf http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_1772FBB44367A22A482577DA0025A674/$file/REAPressRelease.pdf Profit up 153% YoY!!! Let's hope the wind keeps blowing in this direction! |
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mtgoat
Member |
19-Nov-2010 14:46
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REA to spend $7.2m to acquire stake in Chinese wind farm
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kiasiDBT
Veteran |
18-Nov-2010 21:32
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Where got gap at 17.5? I think u should say "may" instead of "would" as nothing is for sure and true enuf, as at this moment, it did not go down to 17.5 since 9/11 till now (which u said "would") .... but touch wood.
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Bintang
Elite |
18-Nov-2010 21:07
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Bon , I did not see him .
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masterlim
Senior |
18-Nov-2010 21:06
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what entry px would be good? as compared to sunpower, would this be better? | ||||
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Bon3260
Supreme |
18-Nov-2010 21:00
Yells: "Ooo Ooo Aaa Aaa!" |
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Bintang, welcm back in SJ... Btw, did u c Victorf???
('',)
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