Not vested
Pick to power gains
Friday, January 21, 2011
Our search for quality picks leads us today to Chaowei Power Holdings (0951), the top lead-acid-based battery maker in China.
This type of battery is the preferred choice of domestic electric bike makers because of low price and stable performance.
But the Ni-MH and Li-ion batteries are considered to be more environmentally friendly.
So Chaowei has started to research Li-ion motive batteries.
It has also begun producing batteries for electric cars and storage batteries for wind and solar energy.
The firm therefore stands to benefit from China's clean energy policy.
In December the stock fell to HK$2.16 from a peak of HK$3.48 after operations at its Shandong province factory were suspended following a case of suspected lead pollution.
But Chaowei also owns plants in Zhejiang, Henan and Anhui provinces. I am not too worried about the Shandong setback.
Chaowei will continue to be the leader in motive batteries. It closed at HK$2.49 yesterday and is not expensive at this level.
http://thestandard.com.hk/news_detail.a ... 10121&fc=8