Huaneng set to beat its peers with strong capacity growth in 2015

Capacity additions could hit 2GW this year.

It has been noted that wind power looks set to exceed its 2014 addition of 20GW and could become the second largest contributor of power capacity growth in China despite its low base.

According to a research note from Barclays, further, Huaneng Renewables appears to be better positioned on both an absolute basis and relative to peers, with the strongest capacity growth in 2015.

Having delivered 1.5GW growth in 2014, Huaneng Renewables has guided for capacity additions of 2GW in 2015, Barclays said.

Here's more from Barclays:

This target is similar to its largest peer Longyuan which is guiding for 1.8-2.2GW growth on a higher base.

Importantly, 25% y/y growth in 2015 following 22% growth in 2014 sets the stage for multi-year earnings growth for the company.

The valuation discount of 20% to the sector average in that context is not pricing in growth potential, in our view.