Utility/Alternative Energy：Coal price settled at Rmb558/ton between Shenhua and Huaneng

Deutsche Bank Markets Research Asia China Utilities Periodical Utility/Alternative Energy Date 12 February 2014 Coal price settled at Rmb558/ton between Shenhua and Huaneng ________________________________________________________________________________________________________________Deutsche Bank AG/Hong Kong Deutsche Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. DISCLOSURES AND ANALYST CERTIFICATIONS ARE LOCATED IN APPENDIX 1. MICA(P) 054/04/2013. Michael Tong, CFA Research Analyst (+852) 2203 6167 michael.tong@db.com Eric Cheng, CFA Research Analyst (+852) 2203 6202 eric-ct.cheng@db.com Kai-Ting Wong, CFA Research Analyst (+852) 2203 6235 kai-ting.wong@db.com Companies Featured Beijing Enterprises (0392.HK),HKD66.40 Buy 2012A 2013E 2014EP/E (x) 18.62 20.87 15.22EV/EBITDA (x) 9.29.78.5Price/book (x) 1.51.71.6CR Power (0836.HK),HKD18.40 Buy 2012A 2013E 2014EP/E (x) 10.337.546.93EV/EBITDA (x) 7.76.05.2Price/book (x) 1.61.31.1Longyuan Power (0916.HK),HKD9.72 Buy 2012A 2013E 2014EP/E (x) 12.921.815.7EV/EBITDA (x) 9.310.99.6Price/book (x) 1.11.91.7Dongfang Electric (1072.HK),HKD11.34 Buy 2012A 2013E 2014EP/E (x) 12.37.56.6EV/EBITDA (x) 5.11.20.0Price/book (x) 1.61.00.9Huaneng Power Intl (0902.HK),HKD7.03 Buy 2012A 2013E 2014EP/E (x) 9.306.086.17EV/EBITDA (x) 7.66.15.9Price/book (x) 1.51.21.1BEWG (0371.HK),HKD4.30 Buy 2012A 2013E 2014EP/E (x) 16.41 29.57 22.59EV/EBITDA (x) 17.422.717.5Price/book (x) 1.62.82.5Datang Renewable (1798.HK),HKD1.56 Hold 2012A 2013E 2014EP/E (x) 82.59 24.38 15.25EV/EBITDA (x) 10.510.18.9Price/book (x) 0.71.00.9Source: Deutsche Bank Sector/company news Contract coal price settled at Rmb558/ton between Shenhua and Huaneng According to various sources, the contract coal negotiation between Shenhua and Huaneng Power (902 HK) has been settled at Rmb558/ton (FOB, 5500kcal/kg). The price is much lower than the Rmb590/ton proposed by Shenhua and China Coal during the 2014 Contract Coal Negotiation previously. Meanwhile, coal inventories at Qinhangdao Port reached 8.41m tons as of yesterday. CR Power: net generation decreased by 4.1% in Jan On 10 Feb, CR Power (0836.HK) announced that its total net generation in Jan 2014 decreased by 4.1% yoy to 11.2m kWh, while on a same plant basis, total net generation decreased by 7.2% yoy. CR Power’s total coal production in Jan 2014 went down by 27.9% to 1.094m tons. The company also pointed out that as Chinese New Year fell in January this year, industrial activity and power demand slowed down significantly during the holiday period. Huaneng Power: adjustment of tariffs for gas-fired power plants Huaneng Power (902 HK) announced on 10 Feb that it recently received the Notification from Beijing and Shanghai regarding the on-grid tariff adjustment of gas-fired power plants in the above two cities. The temporary settlement of on-grid tariffs of Beijing Co-generation will be adjusted to Rmb650/MWh. The on-grid tariffs of Shanghai Combined-cycle will be divided into two parts, i.e. generation tariffs and capacity tariffs. The generation tariffs will increase to Rmb534/MWh, while the subsidy in the form of capacity tariffs will remain unchanged at Rmb45.83/kW per month. Longyuan Power: power generation in Jan 2014 increased by 16.69% yoy On 11 Feb, Longyuan Power (916 HK) announced that its consolidated power generation for Jan 2014 increased by 16.69% yoy to 3,101,477MWh. In particular, the wind power generation registered an increase of 33.56%, the coal power generation registered a decrease of 12.90% and other renewable energy power generation registered an increase of 83.05%. Longyuan Power: arrangement of biomass power generation business Sound Global secures two new BOT projects Canadian Solar announces selective preliminary results for 4Q13, and earnings call on March 5 Canadian Solar announces the concurrent offerings of 2.6m shares and USD100m convertible senior notes Change of share holdings China Suntien Green Energy Corporation Ltd shareholder, JP Morgan, decreased 10,166,000 shares on 5 Feb. See comps and share price analysis table on page 4. 12 February 2014 Utilities Utility/Alternative Energy Page 2 Deutsche Bank AG/Hong Ko