China Power Shares Rise After $127 Million Power Plant Purchase
China Power International Development Ltd. was poised for its first gain in seven days of Hong Kong trading after agreeing to buy a power plant in China’s northeast for 944.6 million yuan ($127 million).
China Power rose as much as 5.2 percent to HK$4.06 and was at HK$4.01 at 10:49 a.m. The city’s benchmark Hang Seng Index is up 0.3 percent. The Beijing-based utility will buy the yet-to- be-completed power plant from parent China Power Investment Corp., it said Nov. 16.
Power producers in the world’s biggest-energy consumer after the U.S. are increasing capacity to supply electricity in the world’s fastest-growing major economy. China Power, the fifth-largest Hong Kong-listed mainland power producer has set a goal of almost tripling capacity to 15,000 megawatts by 2010.
“We remain positive as the transaction demonstrates continued parent support,” Michael Tong, Hong Kong-based utility analyst at Deutsche Bank AG, said today. “In addition, we believe there may be more deal flow given the company’s capacity target.”
The 600-megawatt coal-fired power plant at Qinghe in Liaoning province, due for completion in 2008, will expand the utility’s operational capacity and geographic scope, and generate stable profit growth, China Power said in its Nov. 16 statement.
The utility owned and operated 5,348 megawatts of installed capacity by the end of last year.
Tags: power