Ming Yang Eyes Profit as Advanced Turbines, Policy Spur Orders

China Ming Yang Wind Power Group Ltd., a turbine maker beset with two consecutive annual losses, expects to return to profit with improved machines and more orders spurred by a government plan to encourage wind-power.

Ming Yang is focusing on research and development of onshore turbines with unit capacity of more than 3 megawatts and improving its 2-megawatt products for higher efficiency in less-windy areas, Chief Executive Officer Zhang Chuanwei said. The Zhongshan-based company, which more than doubled its research and development spending last year from 2010, is testing a 6.5-megawatt offshore machine, he said.

“We are entering into a profitability period this year,” Zhang said today in a phone interview. “Gross margin will be very stable.” Ming Yang’s first-quarter gross margin was 15.7 percent, compared with 11.1 percent a year ago.

Ming Yang, whose New York-listed stock has gained 31 percent this year, is betting on the Chinese government’s focus on clean-energy projects. Zhang expects China to add at least 20 gigawatts of wind power this year, compared with 15 gigawatts last year, according to data compiled by Bloomberg.

China’s turbine prices rose about 3 percent in the first half of 2014 from the second half last year as demand increased, benefiting margins, said Zhou Yiyi, a Shanghai-based analyst from Bloomberg New Energy Finance.

Ming Yang has shifted its onshore markets from central and eastern China to the west, Zhang said. The company will supply 29 sets of 3-megawatt turbines to the Guishan offshore wind farm this year and expects to start construction of a 300-megawatt coastal project in China’s eastern province of Jiangsu next year.

— With assistance by Feifei Shen

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