Hu An Cable: PM Wen Jiabao reaffirms China’s commitment to upgrading its power grids in the rural regions during the China State Council board meeting held on 5 Jan 2011.
This comes on the back of an increase in electricity consumption in rural areas, following the implementation of China’s rural home appliance subsidy program. Many places are still suffering from an inadequate supply of power grid infrastructure…
ben_oh : …Hu An is poised to benefit from China’s estimated Rmb200b invmt in its rural power grids btwn 2010-12, of which two-thirds will be spent on power transmission eqpt such as power wires and cables, transformers, wire poles and towers. In particular, China is expected to shift its focus from main power grids (220-750 KV) to the ultra high voltage power grids (800-1000 KV) and rural/ urban distribution power grids (<110KV)…
Hu An is capable of providing the entire range of power cables used in rural power grids construction and is amongst the 20 qualified suppliers to the state grid and state-owned electric power companies, which contributed 47% of FY09 revenue. By Sep ’11, Hu An will also have 2 ultra-high voltage cable pdtn plants in operation, which will add to its already rapid growth profile.
Stock trades at 7.4x fwd P/E. Phillip, UOBK have Buy ratings on the stock with $0.53, $0.55 targets r’ptively.
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