Longyuan's wind power generation jumps 10.7% y-y in February

Its blended power generation also increased.

China Longyuan Power recently announced its February power generation data, with the group’s
blended power generation in February up 4.0% y-y to 2,498GWh.

According to a research note from Nomura, the moderate growth in February power generation was mainly attributable to 10.7% y-y wind power generation growth.

The growth was also attributable to an 8.8% y-y drop in thermal power generation, and a 28.2% y-y drop in other renewable power output.

Here's more from Nomura:

Likely stock movement: Neutral on flat y-y wind utilization - We see the company’s wind power generation growth of 10.7% y-y for February 2015, or 12.3% y-y for 2M15 to be mainly driven by the newly installed wind capacity (up 14% y-y), which implies a flat y-y wind power utilization.

Despite the stable wind utilization data can only be at most neutral to Longyuan and other wind operators, we still expect to see a recovery for the wind farm operators in 2015F, given: 1) as mentioned in our clean energy’s 2014 results preview, 2014 was an exceptional year for
weak wind speed, in our view.

Per China Meteorological Administration (CMA), the 2014 wind speed was lower than the 10-year average manly due to less cold front / air during 2014; and 2) the strong capacity additions in 4Q14, and more capacities to be commissioned than previous years during 1H or first 9-months.

Wind power generation +10.7% in February 2015 on capacity additions - February wind power generation volume rose 10.7% y-y to 1,803GWh, largely driven by the newly installed capacity (+14% y-y) and steady wind speed, vs February 2014.

As per recent feedback we obtained from the managements of other wind farm operators, Huaneng RE and Datang RE also saw stable wind utilisation and steady wind output for February 2015.

Coal-fired power generation dropped 8.8% y-y, mainly due to the impact of 2014 Chinese New Year - As the Chinese New Year in 2014/15 was in January / February, respectively, the thermal power generation was largely affected by the holiday factor in February 2015, at -8.8% y-y. However, comparing 2M15’s number, thermal power generation actually recorded a 7.1% y-y growth.