China Datang Corp. Renewable Power Co., a developer of clean energy projects, rose after it was rated buy in new coverage at BNP Paribas.
Datang Renewable shares gained 5.4 percent to HK$1.97 at the close on the Hong Kong Stock Exchange, their biggest increase since December and the biggest riser on the 100-member WilderHill New Energy Index of companies developing low-carbon technologies.
The company is one of the best ways to gain exposure to the growth in wind power in China, BNP Paribas said in a research report today by analysts led by Daisy Zhang. BNP has a target price of HK$2.48 on the stock.
The company will benefit as China s government raises the target for wind power capacity and from planned power grid upgrades, according to the report. China wants as much as 150 gigawatts of capacity in 2015 and as much as 250 gigawatts in 2020, according to the report.
The country installed 16 gigawatts of new wind power capacity in 2010, 62 percent more than a year earlier, raising its total capacity to 41.8 gigawatts, according to a statement last month by Greenpeace International, which compiled the data with the Chinese Renewable Energy Industries Association.
Three power grid upgrade lines from Inner Mongolia will ease a bottleneck in a region where the company had an estimated 50 percent of its installed capacity last year, according to the report. About 31 percent of China s wind capacity was unconnected to the grid as of the end of September, according to a Dec. 8 research note by Bloomberg New Energy Finance.
