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Analyst: Huaneng International to gain “limited” from buying Yuedian stake |
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Written by Administrator
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Tuesday, 15 August 2006 |
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BEIJING, August 15 (InfoChina) – Huaneng Power International (NYSE:HNP) won’t directly benefit a lot from its recently bought stakes in Guangdong’s Yuedian Group, except that the company’s equity capacity has increased, Chinese securities house Guotai Jun’an says in its latest report.
Only as a strategic investor, Huaneng Group, the parent company of Huaneng Power International, won’t has downright say on Yuedian’s operation. But the latter will benefit from Huaneng’s no-competition promise to cement its predominance in affluent yet power-lacked Guangdong.
The report rates Huaneng at “cautiously buy in”, predicting the company will launch more acquisitions in the second half of 2006.
Huaneng bought 24% of the stakes of Yuedian from local provincial government earlier. |
China Stock News