English | 简体中文 | 繁體中文 | 한국어 | 日本語
Monday, 3 August 2020, 13:30 HKT/SGT
Share:
    

Source: VPower Group International Holdings Limited
BOC International Initiates Coverage on VPower Group with "BUY" Rating

HONG KONG, Aug 3, 2020 - (ACN Newswire) - BOC International initiated coverage on Hong Kong listed VPower Group International Holdings Limited ("VPower Group", stock code:1608) with a "Buy" rating in recognition of its solid growth momentum and the expected high earnings in the coming years.

Headquartered in Hong Kong, VPower Group is an integrated expert in distributed power generation. It principally engages in power system integration (SI) business, covering designing, integrating and sale of gas-fired and diesel-fired engine-based gen-sets and power generation systems, and Investment, Building and Operating (IBO) business, involving investing in, building and operating distributed power stations to supply reliable electricity. It is now a leading distributed power station owner and operator in Asia.

BOC International reckoned VPower Group's engine-based generation model has multi-faceted advantages, thus allowing the Group to fit into different markets especially the under-electrified markets and auxiliary services market. The firm believed VPower Group is well positioned to win more businesses given its solid track record in both developing and developed regions in the past few years.

BOC International highlighted that the commissioning of the Myanmar liquefied natural gas (LNG) to power projects with CNTIC in the near term would boost VPower Group's earnings growth. The firm estimated the projects will make a significant contribution to the Group's profit, leading to a net profit CAGR of 53% from 2019 to 2022. The successful commissioning of the three Myanmar LNG to power projects within a tight deadline has demonstrated VPower Group's capability and unique relationship with upstream engine suppliers to win future tenders.

Regarding the recent top-up placement in which VPower Group raised net proceeds of HK$299 million, BOC International pointed out the proceeds will further replenish the Group's balance sheet and get it prepared for future investments.

BOC International used SOTP methodology to value VPower Group in light of the different business nature of its IBO and SI segments. It initiated coverage with a BUY rating and a target price of HK$ 4.10, implying 11x 2021 P/E.



Topic: Press release summary
Sectors: Daily Finance, Energy, Daily News
http://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2020 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

VPower Group International Holdings Limited Releated News
Aug 3, 2020 13:32 HKT/SGT
中银国际首次覆盖伟能集团给予「买入」评级
Aug 3, 2020 13:31 HKT/SGT
中銀國際首次覆蓋偉能集團給予「買入」評級
July 29, 2020 15:28 HKT/SGT
CMB International Securities Maintains High Conviction "BUY" Rating on VPower Group
July 29, 2020 14:20 HKT/SGT
招银国际证券对伟能集团维持确信「买入」评级
July 29, 2020 14:19 HKT/SGT
招銀國際證券對偉能集團維持確信「買入」評級
More news >>
Copyright © 2020 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 400 879 3881 | Hong Kong: +852 8192 4922 | Singapore: +65 6653 1210 | Tokyo: +81 3 6859 8575