Ming Yang Q1 sales and profits up
Chinese wind turbine group Ming Yang posted healthy year-on-year rises in sales and profitability, as it said its order book has reached a record 3.3GW.
Ming Yang made a net profit of 185.5m yuan ($29.9m) in the first quarter of 2014, well up on the 4.5m yuan seen in the same three months last year – though that was swollen by a one-off 124m yuan gain on disposal of a subsidiary.
The turbine maker boosted its gross margin to 15.7% from a year-ago 11.1%, while sales soared by 52% to 1.22bn yuan.
Ming Yang told investors it signed 671.5MW of orders in the period, taking its total order book to a record 3.3GW.
CEO Zhang Chuanwei said the company has leveraged economies of scale to push down its costs per kW by 3.1% for its 1.5MW machines and 6.9% for Ming Yang’s 2MW turbines.
Orders for the larger turbine are continuing to grow – 122 were ordered in the first quarter – reflecting the trend in China to deploy higher megawatt machines, he added.
Zhang said: "As China continues to work towards a cleaner environment, we expect wind power to continue to become a viable alternative to traditional sources of power generation.
“We have already seen our customers taking advantage of this opportunity, and we expect the upstream supply chain, including Ming Yang, to be in a stronger position to harness this market trend."
Ming Yang was the global number-nine in 2013 rankings of wind turbine sales from analyst MAKE.