A-Power Energy Generation Systems (APWR)

A-Power Energy Generation Systems (APWR)

Postby rforromeo » Fri Feb 27, 2009 8:47 am

China green energy play. Net Profit rose ~100% yoy from 06 to 07, projected > 50% rise in '08. Net cash position, no long term debt. Core business (distributed power generation) growing rapidly, also entering China wind market with new assembly plant built this year.

Low P/E (trailing P/E of ~4 @ current price of $3.42), current price near lowest price ever.

A-Power Energy Generation Systems, Ltd. (A-Power) is engaged in designing, constructing, installing and testing distributed power generation and micro power grids for various customers.
Current backlog of $700 million for this work. Part of China's rural electrification drive - distributed power generation is much cheaper for rural power delivery. Stimulus package should help improve this. Current net margins ~8-10%

Wind assembly plant opened Jan '09, licensing wind technology from Furlander and Norwin - this should reduce startup issues some new entrants wind turbine builders have encountered (eg. Clipper Windpower). Also signed JV with GE Wind for turbine assembly in China. GE Transportation has agreed to supply gearboxes (currently there is a shortage of the gearboxes required for wind turbines).
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Re: A-Power Energy Generation Systems (APWR)

Postby greenhoney » Fri Feb 27, 2009 11:36 am

A-Power Energy Generation Systems, Ltd., through its PRC operating subsidiary, Liaoning GaoKe Energy Group Co., Ltd., is the largest provider of distributed power generation systems in China and entered China's wind energy market in 2008. The Company is also focused on developing and commercializing additional renewable energy technologies and has strategic relationships with both Tsinghua University in Beijing and the China Academy of Sciences in Guangzhou.

SHENYANG, China, Jan. 26 /PRNewswire-Asia-FirstCall/ -- On Jan. 12, 2009, A-Power Energy Generation Systems (NASDAQ: APWR) and GE Drivetrain Technologies, a unit of GE Transportation, announced two Letters of Intent, one for GE to supply A-Power with 2.7 MW wind turbine gearboxes, beginning in 2010, and the second to establish a Joint Venture partnership for a wind turbine gearbox assembly plant. The joint venture will bring a multi-megawatt gearbox capacity to China and serve as GE Drivetrain Technologies' Southeast Asia manufacturing center from which it will serve its customers in the region beginning mid-2010. The combination of these two agreements fits well with A-Power's business strategy and complements investments that it has already made to build a world-class wind turbine business.

the stock took a real beating recently and i really wonder how low can it go? bought some and thinking whether to go in again if the price is ridiculously low! and rferromeo, do check out Yingli Green Energy (YGE), this one did not got entangled in the credit crunch, unlike some of the chinese solar stocks.
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Re: A-Power Energy Generation Systems (APWR)

Postby kennynah » Fri Feb 27, 2009 12:33 pm

GE is deep in troubled waters to their nostrils... whatever joint ventures it may have...what do you think may happen ?
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Re: A-Power Energy Generation Systems (APWR)

Postby greenhoney » Fri Feb 27, 2009 3:23 pm

well one thing i hope for cash rich apwr is to buy over the GE arm that produces the drivetrain! If GE files for protection, they have to sell off certain part of the business, and i hope apwr or other firms will take advantage and buy these technologies!

i have always thought that GE business is very solid and its their finance business that drag the whole company down the hole. other businesses are still profitable.
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Re: A-Power Energy Generation Systems (APWR)

Postby helios » Sun Apr 12, 2009 9:34 am

from chart, APWR looks like an interesting counter to trade ...

congrats, u must have huat huat!
[Finance disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought regarding investing of any stocks/ funds and/or whatsoever. The author has no vested interest in the mentioned stock at the time of writing.
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Re: A-Power Energy Generation Systems (APWR)

Postby greenhoney » Sun Apr 12, 2009 9:58 am

i still want it to go go go !!!
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Re: A-Power Energy Generation Systems (APWR)

Postby helios » Sun Apr 12, 2009 10:04 am

you see the chart, already star formation liao ...
[Finance disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought regarding investing of any stocks/ funds and/or whatsoever. The author has no vested interest in the mentioned stock at the time of writing.
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Re: A-Power Energy Generation Systems (APWR)

Postby helios » Sun Apr 12, 2009 10:20 am

San San wrote:you see the chart, already star formation liao ...


maybe, as u said, wait for correction ... in time to come ...
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Re: A-Power Energy Generation Systems (APWR)

Postby greenhoney » Mon Jul 13, 2009 9:21 am

BANGALORE, July 10 (Reuters) - A-Power Energy Generation Systems Ltd (APWR.O) said its unit, the Shenyang Power Group, signed a memorandum of understanding with the Macau Natural Gas Co to construct a $1.5 billion offshore liquefied natural gas (LNG) complex, sending its shares up almost 26 percent.

Shares of the company, which provides distributed power generation systems in China, rose to a high of $8.99 in early trade, before paring some gains to trade up 17 percent at $8.40 later in the day. The stock was the third highest percentage gainer on Nasdaq.

“The contract is a big positive. It is by far the largest contract that A-Power has ever had,” Raymond James analyst Pavel Molchanov told Reuters.

It is a sign of confidence in A-Power’s ability to pull off a project of this magnitude, Molchanov said, adding that the economics should be “very significant” in the long run.

The analyst, however, pointed out that margins tend to be somewhat lower as a percentage on very big projects, but also said that as the company had not yet got the contract, margins would be up for negotiation.

“Assuming the final contract is agreed upon, revenue would begin to be generated over the process of construction. In general, on these sort of projects, revenue is recognized on a percentage-of-construction basis,” the analyst said.

In a statement, A-Power said with government backing, it was hopeful that the final terms of the contract will be set out later this year and the construction phase could start sometime next year, adding that the terminals could take about two years to build.

The capacity of the LNG facilities is expected to be 3 million tons per year starting 2013, and 5 million tons per year in 2015, A-Power said.

An artificial island to be formed by land reclamation adjacent to Macau will be the site for the project.

The Shenyang, China-based company also said after the construction of the LNG terminals, a 2,400 megawatt natural gas power plant will be built at the same location.

The analyst added that while it was hard to say exactly how much the 2,400 MW power-plant contract would be for, it could be in the billion-dollar range.


still vested, and hope to load up more on this one.
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Re: A-Power Energy Generation Systems (APWR)

Postby greenhoney » Thu Aug 13, 2009 10:36 am

Aug 12 (Reuters) - A-Power Energy Generation Systems Ltd (APWR.O) said it signed a memorandum of understanding to buy privately held Japanese company Evatech Co Ltd for an initial cash price of $50 million, expanding its presence into thin-film solar technology.

Evatech makes industrial equipment for liquid crystal displays (LCDs) and plasma display panels (PDPs).

A-Power said the deal will be primarily funded through government subsidies and loans, with the subsidies expected to amount to 40 percent to 45 percent of the total purchase price.

A-Power, which provides distributed power generation systems in China and also makes wind turbines, expects to close the Evatech deal by the end of November.

Shares of Shenyang, China-based A-Power were trading up 3 percent at $10.44 Wednesday morning on Nasdaq. They touched a high of $10.91 earlier in the session.

* Deal to be funded by govt subsidies, loans

* Says to get 40-45 pct subsidy on deal value

* Shares rise as much as 8 pct

they finally did something with their spare cash but i never thought even in my wildest dreams, they will venture into the solar business. was hoping they will acquire technologies, not certainly not solar! we will see how they integrate this into their overall business, and it will take years before this purchase will bear monetary fruits.

their earnings call is on the 27th this month, and i believe they will announce 2 more huge contracts, one in thailand and the other in the DG side. lets see what happens!
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