United PV's total power generation in the third quarter of 2016 increased 82.2% year-on-year, up from 50.7% in the second quarter of 2016. Based on the net market ratio, the current valuation of United PV is not high.

Total power generation increased 82.2% year over year. United PV's total power generation in the third quarter of 2016 increased 82.2% year-on-year, far higher than 50.7% in the second quarter of 2016. The reasons were (1) Inner Mongolia's strong growth; (2) the contribution of other regions increased; and (3) the lower base in the third quarter of 2015 (note: total power generation fell from 227,196 megawatt-hours in the second quarter of 2015 to 213,109 megawatt-hours in the third quarter of 2015).

Inner Mongolia is growing strongly. The total power generation capacity of Inner Mongolia, a major power generation region, increased 74.6% year-on-year in the third quarter of 2016, up from 68.1% in the second quarter of 2016. Other regions such as Hubei, Shanxi, and Yunnan also continued to increase their contribution to electricity generation in the third quarter of 2016.

Total installed capacity increased. As the total installed capacity of Yunnan and Hebei increased by 35 megawatts and 20 megawatts respectively, the total installed capacity of United PV increased slightly by 5.5% from 996 megawatts in the second quarter of 2016 to 1,051 megawatts in the third quarter of 2016. The number of solar power plants also increased from 26 to 28.

The valuation is not expensive. The current price of United PV corresponds to a net market ratio of 1.34 times in the past, which is higher than 0.55 times that of GCL New Energy (0451 HK, no rating), but far lower than 3.42 times that of Xinyi Solar (0968 HK, purchased). Based on the net market ratio, the current valuation of United PV is not high.