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902: Governance Reforms And Hydropower Venture Will Shape Balanced Outlook

Joint Venture And Governance Changes Will Support Low-Carbon Transition Momentum

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902
AnalystConsensusTarget
Not Invested
Published 22 Dec 2024

Update shared on 11 Dec 2025

Fair value Increased 0.33%
Previous
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AnalystConsensusTarget's Fair Value
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1Y
45.5%
7D
-1.3%

Analysts have raised their price target on Huaneng Power International slightly, reflecting marginally lower perceived risk and steady long term growth and profitability assumptions. These factors support a valuation now closer to its estimated fair value of approximately $6.59 per share.

What's in the News

  • Extraordinary shareholders meeting scheduled for December 23, 2025 in Beijing to vote on key corporate matters and governance items (Key Developments)
  • New hydropower focused joint venture planned with Shanxi Installation Group and Shanxi Sanjian, with Huaneng Power committing RMB 25 million for a 25 percent stake in a 50 year project vehicle (Key Developments)
  • Board meeting set for October 28, 2025 to review and approve unaudited consolidated results for the nine months ended September 30, 2025 and to address other matters (Key Developments)
  • Shareholders approved extensive amendments to the Articles of Association and meeting rules, including abolishing the supervisory committee and revising class shareholder provisions at the September 23, 2025 EGM (Key Developments)

Valuation Changes

  • The fair value estimate has risen slightly from HK$6.57 to HK$6.59 per share, indicating a marginal upward revision in intrinsic value.
  • The discount rate has fallen slightly from 13.32 percent to approximately 13.08 percent, reflecting a modest reduction in perceived risk.
  • Revenue growth has remained effectively unchanged at about 1.63 percent, signaling stable long term top line expectations.
  • Net profit margin has remained virtually flat at around 6.35 percent, indicating no material change in profitability assumptions.
  • Future P/E has declined slightly from 8.76x to about 8.70x, suggesting a modestly lower multiple applied to forward earnings.

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Disclaimer

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