FAST NEWS: Datang Renewable’s power generation jumps 25% in first quarter

The latest: China Datang Corp. Renewable Power Co. Ltd. (1798.HK) announced on Thursday its overall power generation in March was 3.08 million megawatt hours (MWh), up 8.99% from the same month last year, while its power generation for the first quarter jumped 24.72% to 8.736 million MWh.

Looking up: The company’s power generation may be benefitting from a rebound in China’s economy, following historical trends that show a positive correlation between economic performance and power consumption.

Take Note: The company’s wind and photovoltaic power generation increased by 6.55% and 57.15% in March from a year earlier, slower than the 22.67% and 68.62% expansion in the first three months of the year, showing that business growth slowed in March.

Digging Deeper: Established in 2004 and listed on the Hong Kong Stock Exchange in 2010, Datang Renewable Power is the new energy arm of China Datang Corp., engaged in the development, management and operation of wind and photovoltaic power. It is the second largest wind power producer in China. Its revenue and net profit have continued to reach record highs in recent years despite the pandemic, with income and net profit reaching 12.5 billion yuan ($1.82 billion) and 2.93 billion yuan last year, respectively, as Beijing promotes new energy to achieve its carbon reduction targets.

Market Reaction: Shares of Datang Renewable Power rose on Friday, closing up 2.5% at HK$2.92 by the midday break. It now trades near the upper end of its 52-week range.

Translation by Jony Ho

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