China Longyuan Power's blended power generation surged 14.6% in January

Thanks to strong wind power generation growth.

According to Nomura, Longyuan announced its January power generation data, with the group’s blended power generation in January up 14.6% y-y to 3,553GWh. 

The surge in January power generation can be mainly attributed to: 1) 13.5% y-y wind power generation growth, thanks to the newly installed capacity (+13.7% y-y) and steady wind utilisation; 2) a 20.1% y-y increase in thermal power generation; but was partially offset by: 3) a 25.3% y-y drop in other renewable power output. 

Here's more from Nomura:

Likely stock movement: Positive on continuous wind speed stability The steady wind utilisation in January 2015 (flat y-y as January 2014 is a high base) was in line with our expectation of a likely wind speed recovery in 2015. January 2015 was the fourth consecutive month of strong wind speed, and should continue to strengthen investors’ confidence in wind farm operators, thus leading to positive market reaction towards the stock prices of wind farm operators, we think.

We reiterate our view that wind output will record strong y-y growth in 1Q15F as: 1) wind power speed should recover in 2015F; 2) there was a low base for wind speed in the last two months of 1Q14, and; 3) the strong capacity additions in 4Q14, should act as a share price catalyst for wind farm operators.