China Power New Energy has great room for development

Driven by the steady growth policy, the Chinese economy has continued to pick up. According to the National Energy Administration, electricity consumption in the whole society rose by 6.1% in October from a year earlier, and the growth rate was significantly higher than the 2.9% in September. In addition, the state also strongly supports the development of the clean energy industry in the 12th Five-Year Plan.

China Power New Energy (735), which is engaged in wind power, water power, garbage and natural gas power generation business, benefited from the support of national policy. The company’s turnover and tariff adjustment in the first half of the year increased by 5.4% year-on-year to RMB 973 million (***, same below). Net profit rose 35% to 124 million yuan. The growth in hydro and wind power generation was significant, up 1.9 times and 14.3% year-on-year respectively. It is expected that there will still be much room for development in the future of clean energy, and the company's three major shareholders are all state-owned enterprises under the SASAC. Investors can buy at the current price with a target price of $0.42, falling below the $0.32 stop loss.