China Suntien Green Energy Remains Undervalued Despite Weak Near-Term Earnings

China Suntien Green Energy, or Suntien, has wind power and photovoltaic projects across China, with consolidated renewable energy installed capacity of 5.94 gigawatts, or GW, as of end-2022. About 75% of the firm’s consolidated wind power installed capacity was in Hebei (4.27 GW). Suntien also sells natural gas and owns natural gas transmission and ancillary facilities in Hebei. We believe the renewable energy and natural gas businesses are complementary to each other, which help to reduce earnings volatility and diversify operational risks. While more than 90% of Suntien’s revenue was derived from Northern China, the firm is actively looking for opportunities in other regions as well as overseas.