CPID eyes 30GW attributable capacity by end-2020F

Partly amid strong project pipelines.

With strong project pipelines, including both large-scale coal-fired power generation units as well as potential acquisitions of small-scale hydropower stations, China Power International (CPID) targets to raise its attributable capacity from 15GW by end-2014F to 30GW by end-2020F.

According to a research note from Nomura, this implies a 2014-20F CAGR of 12.2% vs. the 2009-14F CAGR of 8.8%.

The above target is also higher than Nomura’s estimates of the national average of 5.3%.

Here’s more from Nomura:

In addition, the company expects the proportion of clean energy capacity to account for >30% (i.e. >9GW) of total attributable capacity, up from the current 20%.

The company targeted to achieve the increase of clean energy portion by acquiring more small-scale hydropower stations which are close to the current hydropower projects through its 63%-owned subsidiary – Wuling Power.

The strong capacity growth pipeline should continue to support the earnings growth opportunity for the company.