UPDATE 3-A-Power Energy ups FY outlook; shares jump

* EPS $0.64 vs $0.04 last year

* Raises FY rev view to $500 mln

* Raises FY net income view to $60 mln

* Says Texas project reached final development phase

* Shares up 24 pct
(Adds analyst comments; updates share movement)

By Arup Roychoudhury and Vinay Sarawagi

BANGALORE, June 10 (BestGrowthStock) – A-Power Energy Generation
Systems Ltd (APWR.O: ) posted higher quarterly profit and raised
its full-year outlook on expectations of stronger turbine
exports, sending its shares up 24 percent.

A-Power raised its 2010 revenue outlook to $500 million
from $380 million and net income outlook to $60 million from
$45 million.

“We definitely see some sequential improvement both at top
line and bottom line for 2010,” Oppenheimer and Co analyst Andy
Yeung said by phone.

A lot will depend on improvement of sales in the company’s
wind business during the second half of the year, Yeung added.

“Our wind turbine business continues to gain traction and
we remain confident in the market outlook, as our larger
turbines are receiving favorable consideration in China,”
A-Power CEO Jinxiang Lu said in a statement.

The Chinese wind turbine company also said its 600-megawatt
wind power project in Texas reached final development phase on
April 27.

“I think for Texas wind farm management basically indicated
that they expect a lot of prep work be done this year, and
actual implementations in 2011,” analyst Yeung said.

In 2008, the company said it was building, along with U.S.
companies, a $1.5 billion wind farm project in West Texas with
enough capacity to supply electricity to 180,000 Texas homes.
The cost of the project rose to $2 billion by Jan. 2010, due
to higher turbine and cable connection costs and six banks,
including Bank of China (601988.SS: ), showed interest in
financing the project. [ID:nTOE60L066]

A-Power is also developing a wind energy turbine production
and assembly plant in Nevada, along with the U.S. Renewable
Energy Group and American Nevada Group. The plant has an
expected annual production capacity of 1.1 gigawatts.

A-Power is among a slew of Chinese renewable energy
companies aggressively competing with bigger peers such as
German solar cell producer Q-Cells (QCEG.DE: ) and Spanish
wind-farm operator Iberdrola (IBE.MC: ) in the emerging global
clean power sector.

For the latest first quarter, the company reported a profit
of $29.3 million, or 64 cents a share, compared with earnings
of $1.6 million, or 4 cents a share, a year ago.

Excluding items, the company earned 5 cents a share, while
revenues more than doubled to $67.3 million.

Analysts on average were expecting A-Power to earn 22 cents
a share, on revenue of $82.1 million, according to Thomson
Reuters I/B/E/S.

The company said geographic diversification into southern
China and international projects contributed to more revenues
from its distributed power generation systems (DG) segment.

Shares of Shenyang, China-based A-Power were up 24 percent
at $9.15 Thursday morning on Nasdaq before paring some gains to
trade 21 percent up at $8.91, trading more than three times
their daily average volume.

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(Reporting by Vinay Sarawagi and Arup Roychoudhury in
Bangalore; Editing by Don Sebastian)

UPDATE 3-A-Power Energy ups FY outlook; shares jump