Renewable Energy

Renewable Energy: Announced its first maiden FY11 results, with Rev at Rmb 128.9m, however grp had a net loss of Rmb39.1m, on back of lower production vol and higher per unit cost of production from its continuing operations. Grp’s manufacturing segment was the sole rev for FY11……

Qtr saw changes to production specs by a major customer, which, resulted in a fall in production vol, leading to higher unit cost of production. On the wind farm investment front, Grp has begun to reap rewards from its 49% stake in the Datang Baotou wind farm….

Going forward, grp tips renewed focus on wind energy development following Jap’s nuclear ciris and grp will pro-actively seek concessions and other opportunities to expand business in China. We note that mkt is generally weary of the stock over its unproven business models and advice investors to exercise caution when dealing with stock.