Jan. 7 (Bloomberg) -- China Windpower Group Ltd. fell the most in almost 14 months in Hong Kong trading as the wind developer said it had a “significant drop” in 2012 profit.
The stock plunged as much as 9 percent to 30 Hong Kong cents for its the biggest intraday decrease since Oct. 20, 2011, after the company said Jan. 4 a decline in earnings from selling stakes in wind farms and from power generated by companies where it’s a joint owner of the project are behind the drop in net income, without giving more information. It plans to announce full-year earnings in March.
The growth of China’s wind-power industry slowed after the government tightened approvals of projects starting in 2011 to ease grid congestion. Installations in 2012 may have fallen 20 percent to 16.4 gigawatts, according to Bloomberg New Energy Finance.
“Grid curtailment was very serious in the first half of 2012, depressing wind-power operators as the growth in demand for electricity slowed and project approvals became harder,” said Jerry Weng, a Shanghai-based analyst at KGI Securities Co. “The situation is expected to get better this year.”
China Windpower shares traded 4.6 percent lower to 31 Hong Kong cents as of the midday trading break. The benchmark Hang Seng index rose 0.1 percent.
The Hong Kong-based company’s first-half profit dropped 90 percent to HK$24.8 million ($3.2 million).
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