RenewableEnergyAsia

RenewableEnergyAsia (REA): Won concession to develop 49.5 MW wind farm in Jiangsu. Jiangsu govt to provide the land, while JV of REA and China Datang will construct and maintain the wind farm. The JV ownership will be as follows, REA with 49% and China Datang 51%. Cost expected to be approx Rmb500m, 80% of which will be financed through bank borrowings…

Co has existing wind farm JV with China Datang in Inner Mongolia with same shareholding structure. Development is likely to be funded with recent Sep IPO placement proceeds of $28.8m. Analysts calls are all Buy with fwd FY Mar11 P/E at 15.46x and FY12 P/E at 7.07x