Datang Renewable (the "Company" or "DTR") reported its power generation statistics for 3Q20. The Company’s3Q20 wind power generation increased 30.83% YoY to 3,738 GWh; estimated quarterly wind power utilisation was up19.44% YoY to 388 hours. The Company’s capacity weighted average wind speed increased 5.13% YoY to 4.74 m/sfor 3Q20 and was mainly driven by the YoY improvement in wind resources for the northeast areas. Due to theincremental effect from new capacity, regional wind power generation in 3Q20 recorded relatively large YoY increasesfor Liaoning, Yunnan, Chongqing (up by 97.09%, 96.21%, and 188.07%, respectively) and etc. Cumulative wind powergeneration for 1-3Q20 was up by 12.79% YoY, and the corresponding wind utilisation hour was estimated to be 1,564hours, up by 8.17% YoY. In addition, the Company's other renewable energy (mostly solar power) power generationrecorded a significant increase of 76.00% YoY for the 3rd quarter as well, mainly driven by capacity growth.
　　Investment suggestions: The Company’s wind power generation and wind utilisation performance in 3Q20 wasbetter than our expectation. The YoY wind power generation growth for the quarter was 23.22 ppt higher than that ofthe 2nd quarter, and was mainly contributed by the 141.3 MW capacity growth (92.0 MW wind + 49.3 MW solar) during1H20. Given the Company's power generation performance in 1-3Q20, we expect its full-year gross power generationto be around 19.6 MMWh. Looking ahead, the notable increase in the Company's wind and solar capacity may bringnew growth momentum to its total output and electricity sales revenue, thus we hold an optimistic view regarding theCompany's 2020 earnings growth. We maintain our “Buy” rating for DTR, and the current TP is HK$1.50.