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Hong Kong-listed unit of China’s third largest coal miner Shandong Energy Group announces wind, solar diversification plan
- Yankuang Energy Group’s share price hits highest level in three months in intraday trading
- Firm’s diversification plan ‘has been received favourably by the markets’, analyst says
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Yankuang Energy Group, the listed unit of one of China’s largest coal miners, has unveiled a plan to diversify its business and develop wind and solar power projects.
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The company, whose parent firm is state-owned coal miner Shandong Energy Group, will promote “the development and construction of new energy industrial projects such as wind power and photovoltaic power, and ancillary power storage projects”, according to a late night filing to the Hong Kong stock exchange on Wednesday. Yankuang Energy will also develop hydrogen production capabilities.
Yankuang Energy’s diversification into wind and solar is part of a larger trend where traditional energy companies are exploring new opportunities in the new energy sector as investors increasingly look for decarbonisation and carbon neutral themes.
“Yankuang Energy’s diversification is focused on being more environmentally friendly, and this has been received favourably by the markets,” said Stanley Chan, director of research at Emperor Securities.
Its share price rose on Thursday by as much as 19.2 per cent to reach an intraday high of HK$17.08, its highest level in three months.
The company said it would “strive to reach an installed capacity of over 10 million kilowatts of new energy power generation and a hydrogen supply capacity of over 100,000 tonnes per year in five to 10 years”.
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