DMG & Partners Securities in a Mar 29 research report says: "Renewable Energy Asia Group (REAG), and its Executive Director, Lam Tak Shing (LTS), have inked a second supplemental agreement to the sale and purchase agreement in relation to the proposed disposal of fastening business which will be acquired by LTS.
DMG & Partners Securities in a Jan 14 research report says: "Renewable Energy Asia Group (REAG) has secured another concession to develop a 49.5MW wind farm with its JV partner, China Datang Corporation Renewable Power Co (China Datang). The wind farm will be located in Binhai New Area, Jiangsu Province, China.
Phillip Securities Research in a Jan 4 research report says: "REA announced that it has entered into a term sheet to dispose the fastening business for a total consideration of $7.6 million. The disposal would have minimal impact on the profits of REA Group as based on the latest financial results (HY11), the fastening business was marginally break even while the wind energy business contributed the bulk of the net profits of RMB11.7 million.
Kim Eng Securities starts Renewable Energy Asia Group (5DW.SG) at Buy with $0.50 target price, based on 12x FY12 P/E, according to Dow Jones.
Kim Eng says company offers unique vertically-integrated business model spanning wind farm development, components manufacturing, plus engineering, procurement and construction.
Broker notes China’s recent approval of RMB 5 trillion ($992 billion) investment plan over 2011-2020 for new energy bodes well for REA’s prospects. Says Chinese legislation requires all power grid companies to buy electricity produced by renewable energy generators, hence benefiting players like REA.
“We like REA for its ability to generate long-term recurring income from its wind farm projects,” says Kim Eng. Shares flat at $0.340.
