Retirement Investment in China Power


Here is a company that you might want to add to your retirement investments. Keeping with the red hot China sector (no pun intended), this play takes advantage of the huge demand for energy in the emerging economy.

Dongfang Electric is a manufacturer of large equipment used in the production of thermal power. They are one of the three major players in China who produce such equipment. They control about 30 percent of the market.

If China’s estimates are right, the country will need to nearly double their output in the next few years. Many analysts say that this is a low estimate.

To meet this huge demand, China is going to have to develop more nuclear power plants. Dongfang Electric is in a position to benefit as nuclear power equipment is their second largest line of equipment. They also deal in wind power equipment (and as previously mentioned, thermal power).

Currently thermal power-related equipment is what the company is making most of their money on, but the other two areas (especially nuclear) mentioned are poised to take off as well.

Like many China stocks these days, to buy this one from your standard US account, is an over the counter play. A recent price was just under $6. We feel like this is one that you might ride in your portfolio a while and would recommend it as a buy up to $25. It might even be good up to $35. If you are looking at adding China to the mix of your retirement investments, this is a good place to start.

Pull up a chart on it yourself and check it out:


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