Ming Yang posts strong Q3

CHINA: Ming Yang has continued its strong recovery this year, almost doubling revenues in the third quarter and swinging into profit.

Ming Yang's 1.5MW turbine is waning in popularity

The manufacturer made CNY 1.7 billion ($276 million) over the period, compared with CNY 961 million in the same period last year. This enabled Ming Yang to move into the black, with a CNY 101 million operating profit, in contrast to the 2013 Q3 loss of CNY 41 million.

The rise was due to an 81% increase in the total capacity of turbines commissioned, taking it to 525MW. The company's 2MW turbine accounted for most of the increase, with 122 units installed over the period, compared with just 43 a year earlier.

Ming Yang sold 648MW in the third quarter, more than double the 296MW recorded a year earlier. All of the orders were for the 2MW turbine.

However, there will be some concern that gross margin was down by 0.1 percentage point to 13.1%. Ming Yang said this was due to exceptional warranty provisions being included in the cost of sales. With this excluded, the company claimed gross margin would come in at 16.3%.

Thanks to a strong Chinese market, Ming Yang has had something of a resurgence this year. In 2013, the company's profits fell by 29% — the third consercutive fall.

The first two quarters of 2014 have seen the company lift its performance, with revenue and profit up across the board.