CMB International Securities Maintains High Conviction “BUY” Rating on VPower Group
CMB International Securities placed its key focus on VPower Group’s iconic Myanmar joint venture and expected it will generate more than 20% internal rate of return, with superior profitability comparing with its other IBO (Investment, Building and Operating) projects.
In addition, CMB International Securities mentioned the LNG cost, utilization rate, and the energy efficiency of the gensets as the key exposures that the joint venture could manage for higher profitability. Yet, the firm believes it is a good timing for VPower Group to expand into LNG-fueled distributed power projects, with the Asia LNG spot market is currently at a range of 3-year low.
CMB International Securities is confident that VPower Group will deliver high earrings growth in FY20/21E, with net profit expected to reach HK$711 million and HK$1,169 million respectively.
Headquartered in Hong Kong, VPower Group is an integrated expert in distributed power generation (DPG). It principally engages in power system integration (SI) business, covering designing, integrating and sale of gas-fired and diesel-fired engine-based gen-sets and power generation systems, and Investment, Building and Operating (IBO) business, involving investing in, building and operating distributed power stations to supply reliable electricity. It is now a leading distributed power station owner and operator in Asia.
Copyright 2020 ACN Newswire. All rights reserved. www.acnnewswire.com