Overview
Hong Kong renewable energy operator's H1 revenue fell 25% yr/yr amid poor wind and curtailment
Company posted net loss attributable to equity holders, reversing profit from prior year
Lower wind speeds, higher curtailment, and reduced subsidies drove declines in results
Outlook
Company says government plans to expand transmission corridors could reduce curtailment long term
CRE says it will not expand unless it sees lower curtailment and stable market prices
Company is focusing on repowering existing assets rather than new capacity additions
Result Drivers
POOR WIND & CURTAILMENT - Co said lower wind speeds and higher curtailment rates reduced power dispatch and revenue
SUBSIDY & TAX POLICY CHANGES - Co said elimination of tariff subsidies for Danjinghe and Changma wind farms and termination of value-added tax refund policy reduced income
LOW MARKET TARIFFS - Co said more power was sold at market rates, which remained low, further impacting revenue
Key Details
Metric
H1 Revenue
Beat/Miss
Actual
HK$70.70 mln
Consensus Estimate
Analyst Coverage
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago
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