J.P. Morgan

According to a report published by J.P. Morgan Chase, CGN Meiya (3.15, 0.16, 5.35%) (01811.HK) has outperformed the market by about 35% since the beginning of the year, mainly due to market expectations of receiving capital injection from parent company CGN Group. The bank estimates that in the next four years, GN America and Asia will be able to inject more than 6 GW of assets, of which 1.3 GW and 1.2 GW of assets are expected to be injected this year and next two years, respectively. Motong expects that CGN's current level in the US and Asia will still have more room to rise. It is expected that it can inject more assets (likely wind power plants), and that the potential asset injection will be more profitable, and that the capital injection is likely to take place in the third quarter of this year, which is earlier than originally anticipated. The CGN America Asia rating was raised from “neutral” to “increased holdings”, and the target price was raised from 2.5 yuan to 3.6 yuan. The earnings estimates for the 2015, 2016 and 2017 fiscal years were raised by 5%, 20% and 27%. The bank believes that with the release of long-term growth, CGN America and Asia can receive a valuation revaluation.