Huaneng Renewables Corp. advanced to its highest in more than five weeks after the Chinese wind-power operator said full-year profit in 2015 probably rose more than 50 percent.
The stock jumped as much as 11 percent to HK$1.95, the highest since Jan. 11, and traded at HK$1.93 as of 11:34 a.m. local time in Hong Kong. The gain takes the stock’s four-day rally to about 36 percent, the longest winning streak since Dec. 29.
An increase in installed capacity, stronger cost controls and penalty income from turbine suppliers contributed to the profit gain, the Beijing-based company said on Wednesday without providing further detail.
Huaneng Renewables’s amount of wasted wind power, known as a curtailment ratio, is unlikely to reach the worst level that the company saw in 2012, analysts led by Li Min at China International Capital Corp. wrote in a note on Thursday. At the same time, Huaneng Renewables’s valuation is at 2012 levels, offering a good opportunity to accumulate the stock, the analysts wrote.
— With assistance by Feifei Shen