This Chinese Electric Utilities company trades on NASDAQ. The April 2008 market capitalization is below $500 million. However, the company is a model of business strength through integration that would do the largest corporation proud. It also represents an exceptional stock investment opportunity, since it is at the center of meeting China’s energy security aim.
Most countries and financial markets are polarized on the energy front. Some continue to expand conventional power generation, while others actively support alternative energy sources. China has adopted a holistic approach, leveraging all available oil, coal, uranium, and gas resources, while investing heavily in solar panels and hydrogen fuel cells at the same time. This company uses business integration to adapt diligently to the policies of the country where it operates.
The stock belongs to a holding company. The latter owns an operating subsidiary which makes small power grids and on-site generation systems. Another subsidiary is focused on building linkages with domestic universities and other academic bodies. These collaborations aim to develop commercial models for renewable and clean forms of energy. This is how the company blends short and long term business goals for its business in electric utilities. Both distributed power generation and alternative energy sources are crucial for bridging China’s needs.
The Trailing Twelve Months Price to Earnings Ratio of this stock is less than one. Annual Sales Growth during this period was almost 55%, with a Net Profit Margin of nearly 10% and Interest Coverage of more than 10. Clearly this is one of the best stocks to watch from the Electric Utilities Industry.
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