SEHK:579Renewable Energy
Beijing Jingneng Clean Energy (SEHK:579) Stock Nears Fair Value Gap As Margins Thin
Beijing Jingneng Clean Energy closed at HK$1.675 on the day of its Q2 release, which leaves the stock well below the earlier estimate of fair value and caps a three month slide of about 24%. The short term story is weak sentiment. The long term story is whether investors trust the earnings power implied by a single quarter in which net income reached about CNY 330.7m on revenue of roughly CNY 3.7b.
The central issue is margin pressure. Net profit margin over the past year compressed from...