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The Star
2 days ago
- Business
- The Star
China's mega dam project in Tibet sparks hydropower stock surge
China's construction of the world's largest hydropower dam in Tibet has boosted related stocks, as analysts predict that infrastructure construction companies, energy developers, and power grid equipment manufacturers would benefit from the substantial investment into what Beijing calls the 'project of the century'. Chinese Premier Li Qiang on Saturday announced the start of the project, situated on the lower reaches of the Yarlung Tsangpo River, which becomes the Brahmaputra River as it leaves Tibet and flows south into India and finally into Bangladesh, state news agency Xinhua reported. The project features five cascade hydropower stations, with a total estimated investment of about 1.2 trillion yuan (US$167 billion) and an anticipated annual electricity generation capacity of 300,000 gigawatt-hours, according to Xinhua. This makes it the world's largest hydropower facility, with five times the investment and three times the capacity of China's current largest dam, the Three Gorges Dam. Stock prices in China's infrastructure construction and hydropower sectors surged when trading resumed on Monday following the announcement. Shares of Power Construction Corporation of China, a state-owned developer involved in the project, jumped 10 per cent to reach the daily limit on both Monday and Tuesday. Companies specialising in hydro equipment, such as Dongfang Electric, and cement firms, including Huaxin, also saw significant price gains on Monday. 'This project will be conducive to boosting [China's] economy and raising the national clean energy mix,' said Citigroup analyst Pierre Lau in a research note on Tuesday. In addition to the 1.2 trillion yuan investment in construction, Citi anticipated an additional 768 billion yuan in investments to build power grids, spurred by the initiative. As the world's largest carbon emitter, China is rapidly expanding its renewable energy sector to meet national goals of peaking emissions by 2030 and achieving net-zero emissions by 2060, while also stabilising its power supply. The country is the world's leading hydropower producer. It added 14.4 gigawatts of new capacity last year and is poised to exceed its target of 120 gigawatts in pumped storage hydropower by 2030, according to data from the International Hydropower Association. Citi expected the dam project and the substantial related investments to benefit hydropower plant and grid equipment manufacturers in China, including Dongfang Electric, Sieyuan Electric, Pinggao Group, and XJ Electric. However, some analysts cautioned that market enthusiasm could wane in the coming weeks, given the project's lengthy construction timeline, which could extend beyond a decade. The project has also raised concerns among downstream countries, including India, regarding water supply and environmental impact. 'While the hydro project is applauded as a significant step towards China's decarbonisation goals, it is important for investors to monitor its environmental impact management from a long-term view,' wrote Daiwa analyst Dennis Ip and his colleagues in a note on Tuesday. - SOUTH CHINA MORNING POST
CNBC
23-07-2025
- Business
- CNBC
China's $167 billion Tibetan mega-dam is set to boost these hydro-equipment and materials' stocks
China has kicked off construction on the world's largest hydropower dam, and analysts expect the colossal undertaking to be a huge boost for hydro-equipment and materials suppliers. Chinese Premier Li Qiang launched the construction of the mega-dam, located on the eastern rim of the Tibetan plateau, that is expected to produce 300 billion kilowatt-hours of electricity annually — three times the size of the Three Gorges Dam — the world's largest single source of green power. That capacity would be equal to 21% of China's entire hydropower generation last year and around 2% of the country's total power generation, according to Pierre Lau, head of Asia-Pacific utilities research at Citi. Lau named Dongfang Electric, a leading hydropower equipment manufacturer in China, as a major beneficiary of the surge in new orders from the dam's construction. With total investment for the Yarlung Zangbo hydropower project estimated at 1.2 trillion yuan ($167.8 billion) — around five times that of the Three Gorges Project — total bids for power equipment could hit as much as 120 billion yuan, Lau said. Dongfang, which enjoyed a 45% share in the conventional hydropower market, could rake in as much as 54 billion yuan from the new project, according to Lau. That would equate to 77% of the company's entire revenue in 2024, he said, although the revenue recognition may start at least five years later. Dongfang Electric saw its shares listed in Shanghai jump 10% — hitting their upper limit — on the first two trading days this week. Its shares in Hong Kong soared over 65% on Monday after the dam's ground-breaking on Saturday — shares traded 4.4% lower at 22.9 Hong Kong dollars ($2.9) Wednesday after sliding 2.8% Tuesday. The company is also better-positioned thanks to its hydropower unit production and research base in the city of Linzhi in Tibet, allowing it to develop customized equipment for the high-drop environment of the Yarlung Zangbo river, Lau said. Albert Miao, head of China energy transition and commodities research at Macquarie Capital upgraded the target price for Dongfang Electric's H-shares by 27% to HK$14.10, and A-shares by 17% to 25.50 yuan, with "outperform" ratings, citing "stronger than expected thermal power approvals and build-ups into 2030." Other top names for investors to watch include grid equipment makers Sieyuan Electric, Henan Pinggao Electric and XJ Electric, according to Lau, as the project will likely prompt a surge in demand for ultra-high voltage transmission lines and switchgears. Surging demand for cement, explosives Besides the hydropower infrastructure and equipment suppliers, analysts suggest construction of the colossal project would also benefit companies involved in production of cement and civil explosive products. Equity brokerage firm CGS International expects cement supplier Xizang Tianlu to be a major beneficiary, as the project is estimated to use more than 40 million cubic meters of concrete, translating into over 16 million tons of cement, or 1 million ton annually. "Tianlu, with all its capacity in Tibet, stands to benefit most," Macquarie's Miao said, while other players derived only a small share of revenue from Tibet. CGS International also pointed to Huaxin Cement and Anhui Conch Cement , both listed in Hong Kong as well as Shanghai, as potential winners as they could help supplement supply if Tibet's cement production falls short. Gaozheng Explosives, which has garnered around 90% of share in Tibet's civil explosives market, could reap a majority of new orders for the dam, Miao said, as it may be "unfeasible" for players outside the region to transport explosives due to strict regulation and high costs. In a filing on the Shenzhen stock exchange Tuesday, Zhejiang Jindun Fans , a ventilation system equipment supplier, warned of "abnormal fluctuation" in the trading of its stocks. While construction of the hydropower dam had kicked off, respective bidding process had not started, the company said, cautioning investors to invest "rationally." The stock soared 11% on Monday, followed by a 20% surge on Tuesday to close at 16.08 yuan ($2.24). The rally in related stocks this week was likely driven by increased visibility into the mega-dam project, according to Kai Wang, Asia equity market strategist at Morningstar. "Much of the loans and planning had already been approved back in December, but it wasn't until this past week that we saw the full scale — how big it would be, how much cement it would require," Wang added. He also highlighted Anhui Conch Cement as a preferred pick following the launch of the mega-dam, noting the stock has long been among the firm's top recommendations. The project could renew investors' interest in the name, Wang said, especially as it stands to benefit from Beijing's recent "anti-involution" policies targeting aggressive price undercutting. He maintained the price target for the Hong Kong-listed stock at HK$26. The stock last traded at HK$24.1 Wednesday. It might take up to 10 years for the dam project to be completed in phases, according to a team of economists at Nomura, who predicted the boost to the economic growth to be "most visible" in the first couple of years, leading to a gain of 0.1 percentage point in GDP growth.
Forbes
21-07-2025
- Business
- Forbes
China Market Update: Dam Project Benefits Construction-Related Stocks
CLN Asian equities started the week off on a positive note, except for Australia and Japan, which was closed for Marine Day, a public holiday celebrating and giving thanks for the ocean's bounty, according to Perplexity. The biggest news today was that Linzhi City hosted the ceremony for a new hydropower dam project on the Yarlung Zangbo River in Tibet. The dam, which Bloomberg says will be three times the size of the Three Gorges Dam, will consist of five electrical plants. Its construction will cost RMB 1.2 trillion. It will also generate 200,000 jobs and add RMB 2 billion in revenue for Tibet annually, once the decade-long construction is completed. The official start of the project ignited a rally in the Hong Kong and Mainland China-listed shares of construction-related subsectors, including construction machinery, oil, metals, mining, steel, building material, and heavy machinery companies. Mainland and Hong Kong markets saw massive rallies in individual stocks. Hong Kong's moves were amplified by short sellers getting steamrolled, as the Hong Kong-listed Dongfang Electric gained +65%, Huaxin Cement gained +85%, and China Energy Engineering gained +23%, while the Mainland-listed Anhui Conch Cement gained +10%. The project's demand for steel and cement caused futures to rally, as both industries faced the anti-involution campaign's effort to curtail overproduction and price wars. The 1 and 5-Year Loan Prime Rates (LPRs) were left unchanged, as expected, at 3.0% and 3.5%, respectively. Alibaba gained +1.81%, Meituan gained +2.75%, and gained +2.11%, following Friday's after-the-close announcement that the State Administration of Market Regulation (SAMR) had met the three companies concerning their instant commerce price war. SAMR's concerns are likely driven by restaurants and convenience stores not getting in store business due to significant subsidies for delivery. The intervention is very much aligned with the recent anti-involution campaign, which initially mentioned E-Commerce as an industry culprit. Healthcare was lower both offshore and onshore, as investors took profits, though the sector remains a strong outperformer this year. Hong Kong and Mainland brokerage stocks had good sessions, as Hong Chief Executive Li Jiachao stated that there have been 52 IPOs so far this year, 30% more than last year by this time, which raised a total of HKD 124 billion. Mainland investors made their presence felt, as Southbound Stock Connect saw a healthy net $898 million worth of buying from Mainland investors, accounting for 61% of Hong Kong turnover. The very high turnover percentage indicates a lack of foreign involvement, in my opinion. The Hang Seng and Hang Seng Tech indexes both closed at big round numbers: 25,000 and 5,600, respectively. Shanghai and Shenzhen both grinded higher across the trading day. After the close, Premier Li and the State Council announced new regulations concerning housing rentals. Chengdu announced that easing housing purchase restrictions would be done incrementally. Reuters is reporting that President Xi will meet with European Commission President Ursula von der Leyen and European Council President Antonio Costa this Thursday in Beijing. The meeting comes against the backdrop of the EU's sanctions against Russia. There was also continued chatter that a Xi-Trump summit could be in the works, as Reuters reported that Putin would travel to Beijing to meet with Trump. The September summit floated by Reuters is aligned with our belief that a summit could occur around September's 80th anniversary of World War Two ending. Live Webinar Join us on Tuesday, July 22, 10:00 am EDT for: China Mid-Year Outlook: Trade Deal Loading, Consumption & Innovation Locked In Please click here to register New Content Read our latest article: KraneShares KOID ETF: Humanoid Robot Rings Nasdaq Opening Bell Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
Times
06-06-2025
- Business
- Times
China surpasses German engineering with world's tallest wind turbine
Other countries compete to build the tallest skyscraper, or the biggest Ferris wheel. China and Germany are more serious about their engineering: they compete for the prize of having the biggest wind turbine. One of China's two leading wind turbine companies, Dongfang Electric, announced on Friday it had completed a key test on the latest machine that, when it goes into service shortly, will break that record. Standing 340 metres from its base in the Pacific, off the coast of the country's Fujian province, to the tip of its blades when they rotate to their highest points, it will be the first wind turbine to be taller than the Eiffel Tower. Dongfang — meaning the East — said it had finished load testing a prototype blade for the turbine, itself 150 metres long. 'We're harnessing the power of tech to plant the seeds of a greener future,' it said in celebration. 'Every blade carries a low-carbon dream, ready to catch the wind and grow strong.' China under President Xi has put huge economic weight on not only an ever-expanding industrial base but also being at the forefront of green technologies. With no room for political opposition, and a heavy continuing reliance nationally on coal and other fossil fuels at the same time, there is little of the public debate around wind power that western European companies have faced. China already makes more than 80 per cent of the world's solar panels. Its low cost base — unfairly subsidised, according to western rivals — is also undercutting and starting to dominate American and European production in wind power too. A worker at the Dongfang factory operates a robotic arm At present the wind turbine claimed to be the world's highest was constructed by another Chinese company, Mingyang, and operates off the southern Chinese island of Hainan. Its hub is at the same height as Dongfang's — 185 metres off the ground — but its blades are a few metres shorter. A similarly sized turbine is already operating at the site to which the Dongfang blades are believed to be heading, the Fujian Fuzhou Offshore Wind Power Industrial Park. Its maximum capacity is 18MW of electricity, and the Hainan turbine is 20MW, which the new turbine will surpass by 6MW. According to estimates, that will be enough at average 10 metres per second windspeeds to power 55,000 homes on its own. Britain's tallest wind turbines — at the Longhill Burn Wind Farm in West Lothian, Scotland — stand up to 150m tall. The blades reach as high as 200m. How long any of these three monsters maintain their dominance is unclear. As Germany tries to reclaim its traditional global leadership in engineering — and tries to stave off Chinese competition — its companies are also building higher. A turbine being designed and built by Gicon, a German conglomerate, will stand at 363 metres from toe to the tip of the vertical blade. It, however, is based on a novel design, in which smaller blades rotate from a 300-metre high lattice structure itself influenced by the design of the Eiffel Tower. It will, however, be the second highest man-made object in Germany, after the Berlin TV Tower.
Yahoo
03-04-2025
- Business
- Yahoo
3 Asian Dividend Stocks To Watch With Up To 4.4% Yield
As global markets grapple with economic uncertainty and inflation concerns, Asian stocks have been navigating a complex landscape shaped by trade tensions and evolving consumer sentiment. In this environment, dividend stocks can offer a measure of stability and income potential, making them an attractive option for investors seeking to balance risk and reward. Name Dividend Yield Dividend Rating Totech (TSE:9960) 4.02% ★★★★★★ Wuliangye YibinLtd (SZSE:000858) 3.90% ★★★★★★ CAC Holdings (TSE:4725) 4.94% ★★★★★★ Tsubakimoto Chain (TSE:6371) 4.55% ★★★★★★ Nihon Parkerizing (TSE:4095) 4.29% ★★★★★★ Daito Trust ConstructionLtd (TSE:1878) 4.24% ★★★★★★ Intelligent Wave (TSE:4847) 3.92% ★★★★★★ Nissan Chemical (TSE:4021) 3.88% ★★★★★★ GakkyushaLtd (TSE:9769) 4.23% ★★★★★★ China South Publishing & Media Group (SHSE:601098) 3.78% ★★★★★★ Click here to see the full list of 1173 stocks from our Top Asian Dividend Stocks screener. Here we highlight a subset of our preferred stocks from the screener. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Dongfang Electric Corporation Limited designs, develops, manufactures, and sells power generation equipment both in China and internationally, with a market cap of HK$49.98 billion. Operations: Dongfang Electric Corporation Limited's revenue is derived from several segments, including Clean and Efficient Energy Equipment (CN¥2.84 billion), Renewable Energy Equipment (CN¥1.66 billion), Emerging Growth Industry (CN¥1.12 billion), Engineering and Trade (CN¥601.91 million), and Modern Manufacturing Service Industry (CN¥756.44 million). Dividend Yield: 4.4% Dongfang Electric's dividend history is marked by volatility, with past payments experiencing significant fluctuations. Despite this, the company's dividends are well-covered by earnings and cash flows, with payout ratios of 46.7% and 31.3%, respectively. Recent financial results show increased sales and revenue but a decline in net income to CNY 2.92 billion for 2024, impacting dividend sustainability. The proposed final dividend is RMB 4.38 per ten shares, reflecting a decrease from previous distributions amidst leadership changes in the boardroom. Delve into the full analysis dividend report here for a deeper understanding of Dongfang Electric. Our valuation report unveils the possibility Dongfang Electric's shares may be trading at a discount. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Chongqing Rural Commercial Bank Co., Ltd., along with its subsidiaries, offers banking services in the People's Republic of China and has a market capitalization of HK$72.10 billion. Operations: Chongqing Rural Commercial Bank Co., Ltd. generates revenue from three main segments: Personal Banking (CN¥10.14 billion), Corporate Banking (CN¥4.93 billion), and Financial Market Operations (CN¥7.14 billion). Dividend Yield: 4.3% Chongqing Rural Commercial Bank's dividend track record is unstable, with past payments showing volatility. Despite this, current dividends are well-covered by earnings at a 30.7% payout ratio, and future coverage is forecasted to remain strong. Recent financial results indicate net income growth to CNY 11.51 billion for 2024, although net interest income declined slightly. The proposed final cash dividend of RMB 1.102 per ten shares reflects a decrease amidst recent executive changes in the boardroom. Unlock comprehensive insights into our analysis of Chongqing Rural Commercial Bank stock in this dividend report. Insights from our recent valuation report point to the potential undervaluation of Chongqing Rural Commercial Bank shares in the market. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: OKP Holdings Limited is a transport infrastructure and civil engineering company operating in Singapore and Australia, with a market cap of SGD208.73 million. Operations: The company's revenue segments include construction at SGD91.89 million and maintenance at SGD28.32 million. Dividend Yield: 3.7% OKP Holdings' dividend payments have been volatile over the past decade, yet are well-covered by earnings with a 9.1% payout ratio and cash flows at 14.1%. Despite a recent decline in net income to S$33.7 million for 2024, the company proposed a special final dividend of S$0.015 per share alongside an annual dividend of S$0.01 per share, payable on May 27, 2025, subject to shareholder approval. Take a closer look at OKP Holdings' potential here in our dividend report. Our comprehensive valuation report raises the possibility that OKP Holdings is priced lower than what may be justified by its financials. Investigate our full lineup of 1173 Top Asian Dividend Stocks right here. Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SEHK:1072 SEHK:3618 and SGX:5CF. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
