Aug. 24 (Bloomberg) -- Huaneng Renewables Corp., a unit of China’s biggest electricity producer, rose the most in 11 weeks in Hong Kong trading after its first-half profit more than doubled.
The stock jumped 15 percent, the biggest intra-period increase since June 10, to HK$2.06, and traded at HK$1.95 at 11:20 a.m. local time. This compares with the benchmark Hang Seng Index’s 1 percent decline.
The China Huaneng Group Corp. unit’s net income climbed to 673.3 million yuan ($105 million) from 291.5 million yuan a year earlier, according to a filing to the Hong Kong stock exchange yesterday.
Huaneng joins China Longyuan Power Group Corp. and China Datang Corp. Renewable Power Co. to report a substantial increase in profit for the six months ended June 30. Wind-power companies are expanding production, encouraged by the government’s goal to have 110 gigawatts of wind capacity by 2015.
Huaneng increased its installed wind-power capacity by 125 percent to 3.7 gigawatts by the end of June from a year earlier, the company said. Building costs fell, as the average procurement cost of turbines declined 17 percent in the first half compared with the same period a year earlier.
“The major factor contributing to such growth is the strategic location of the company’s wind farms,” said Huaneng. About 60 percent of its projects are in the northeast of the country, according to the filing.
The Beijing-based company in June raised HK$6.6 billion ($846 million) from an initial offering in Hong Kong, the nation’s second-biggest clean-energy share sale this year.
To contact Bloomberg News staff for this story: Feifei Shen in Beijing at Fshen11@bloomberg.net
To contact the editor responsible for this story: Reed Landberg at email@example.com.