Tai Fook: Maintain Oriental electric H-Share buying rating

The latest data from the Securities and information Terminal show that the Eastern Electric H-Share (01072) product portfolio has a strong tilt towards the renewable energy business, said Fu. Dafo noted that sales of wind power products in the first quarter of 09 grew 165% from a year earlier, to 1.4 billion Hong Kong dollars, accounting for 19% of total sales, and gross profit margins increased by 1.9% over a year earlier, as economies of scale increased. Dafo said the diversification of orders from the Orient also convinced the company's future profitability to be the most predictable, as demand for thermoelectric equipment slowed and the industry benefited from the Chinese government's plans to develop new energy. Maintain the buying rating of the unit at a target price of HK $27.55.