A-Power Energy (APWR) Surging AH On 6YR, $28o Million Contract

Earlier today, I posted about A-Power Energy’s (APWR) shipment of a prototype wind turbine to the US and mentioned it was a great time to consider getting long APWR.  While APWR is better known for its wind turbine business, they have construction operations in a variety of industries. 

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In after hours trading, we have another reason to get long.  The company has won a $280 million, 6 year contract with Baishan Long Run Water Conservancy to plan, design and build hydro power plants along with roads and office buildings in China.  Revenues will be recognized based on the percentage of completion of the total project.  That should amount to roughly $45 million/quarter which is about half of what this company does in a quarter, so a significant win.

The six year project consists of three phases.

1. A 12.8MW water control project in Baishan
2. A 64MW hydro power station in Laosong, Baishan
3. Two 16MW hydro power stations on the Baijianghe River

Mr. Jinxiang Lu, A-Power’s Chairman and CEO commented, "We are very excited about this new win at our Liaoning (Gao Ke) Hi-Tech Energy Group subsidiary and the continuing success in our core distributed generation (DG) business. Building upon our current pipeline in our DG division, this multi-year EPC project provides us with improved sales visibility heading into the second half of our fiscal year and beyond. " 

Shares are surging 10% in after hours trading and continue to push off support of the 50 day moving average.  The bottom is likely in for APWR.

One thought on “A-Power Energy (APWR) Surging AH On 6YR, $28o Million Contract”

  1. and today , APWR releases MORE information on the Texas 1.5 billion reasons to be LONG APWR
    Lets LINK our sites together to help each other since I focus basically 90% on APWR!

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