Announcement • May 07
Huadian Power International Corporation Limited, Annual General Meeting, May 28, 2026 Huadian Power International Corporation Limited, Annual General Meeting, May 28, 2026, at 14:00 China Standard Time. Location: No. 655, Shiquan Street, Gusu District, Suzhou, Jiangsu China Announcement • Mar 30
Huadian Power International Corporation Limited to Report Q1, 2026 Results on Apr 29, 2026 Huadian Power International Corporation Limited announced that they will report Q1, 2026 results on Apr 29, 2026 Announcement • Dec 26
Huadian Power International Corporation Limited to Report Fiscal Year 2025 Results on Mar 27, 2026 Huadian Power International Corporation Limited announced that they will report fiscal year 2025 results on Mar 27, 2026 Announcement • Sep 30
Huadian Power International Corporation Limited to Report Q3, 2025 Results on Oct 29, 2025 Huadian Power International Corporation Limited announced that they will report Q3, 2025 results on Oct 29, 2025 Announcement • Sep 29
Huadian Power International Corporation Limited Announces the Resignation of Zhao Wei as Non-Executive Director The board of directors of Huadian Power International Corporation Limited announced that Mr. Zhao Wei ("Mr. Zhao") has tendered his resignation
as a non-executive director and a member of the strategic committee of the tenth session of the Board due to personal work reasons. The resignation became effective on the day when the resignation letter was received by the Board. After the resignation taken effect, Mr. Zhao will no longer hold any position at the Company. Upcoming Dividend • Sep 25
Upcoming dividend of CN¥0.09 per share Eligible shareholders must have bought the stock before 02 October 2025. Payment date: 31 December 2025. Payout ratio is a comfortable 42% and this is well supported by cash flows. Trailing yield: 6.8%. Within top quartile of Hong Kong dividend payers (6.7%). Higher than average of industry peers (4.7%). Reported Earnings • Aug 31
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: CN¥33.4b (up 50% from 2Q 2024). Net income: CN¥1.97b (up 45% from 2Q 2024). Profit margin: 5.9% (down from 6.1% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Renewable Energy industry in Hong Kong. New Risk • Aug 30
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Earnings are forecast to decline by an average of 7.7% per year for the foreseeable future. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Announcement • Jun 30
Huadian Power International Corporation Limited to Report First Half, 2025 Results on Aug 29, 2025 Huadian Power International Corporation Limited announced that they will report first half, 2025 results on Aug 29, 2025 Announcement • Jun 25
Huadian Power International Corporation Limited (SEHK:1071) completed the acquisition of China Huadian Group Guigang Power Co., Ltd. from CHD Power Plant Operation Co., Ltd. Huadian Power International Corporation Limited (SEHK:1071) agreed to acquire China Huadian Group Guigang Power Co., Ltd. from CHD Power Plant Operation Co., Ltd. for CNY 1.8 billion on August 1, 2024. The consideration will be paid in cash. As of November 27, 2024, the deal was approved by Huadian Power International Corporation Limited.
As of June 30, 2024, China Huadian Group Guigang Power Co., Ltd. reported total assets of CNY 2.13 billion and total common equity of CNY 1.27 billion.
The deal has been approved by the board of directors of Huadian Power International Corporation Limited. As of March 14, 2025, the transaction has been approved by State-owned Assets Supervision and Administration Department and Hong Kong regulatory authorities. As of March 27, 2025, the Merger, Acquisition and Restructuring Review Committee of the Shanghai Stock Exchange’s (“SSE-MARR”) approved on acquisition of assets through issuance of shares and payment of cash and raising of supporting fund. The SSE-MARR has confirmed that the transactions are in compliance with the restructuring conditions and information disclosure requirements. This is still pending approval by the China Securities Regulatory Commission. As of April 23, 2025 The proposal was also reviewed and approved by the special meeting of the independent directors, strategic committee of the board of directors, and the audit committee of the board of directors. As of May 16, 2025, the transaction have been approved by China Securities Regulatory Commission.
Huatai United Securities Co., Ltd. and China Galaxy Securities Co., Ltd. (SEHK:6881) acted financial advisors, Slaughter and May and King & Wood Mallesons, China acted as a legal advisor, ShineWing Certified Public Accountants Co., Ltd. acted as an accountant to Huadian Power.
Huadian Power International Corporation Limited (SEHK:1071) completed the acquisition of China Huadian Group Guigang Power Co., Ltd. from CHD Power Plant Operation Co., Ltd. on June 23, 2025. Upcoming Dividend • Jun 12
Upcoming dividend of CN¥0.13 per share Eligible shareholders must have bought the stock before 19 June 2025. Payment date: 15 August 2025. Payout ratio is a comfortable 45% and this is well supported by cash flows. Trailing yield: 6.0%. Lower than top quartile of Hong Kong dividend payers (7.5%). Higher than average of industry peers (4.7%). Declared Dividend • May 21
Dividend of CN¥0.13 announced Shareholders will receive a dividend of CN¥0.13. Ex-date: 19th June 2025 Payment date: 15th August 2025 Dividend yield will be 4.8%, which is higher than the industry average of 4.2%. Sustainability & Growth Dividend is well covered by both earnings (45% earnings payout ratio) and cash flows (23% cash payout ratio). The dividend has increased by an average of 1.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 23% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 16
Huadian Power International Corporation Limited, Annual General Meeting, Jun 17, 2025 Huadian Power International Corporation Limited, Annual General Meeting, Jun 17, 2025, at 14:00 China Standard Time. Location: No. 4, Xuanwumennei Avenue, Xicheng District, Beijing China New Risk • May 02
New major risk - Financial position The company's debt is not well covered by operating cash flow. Operating cash flow to total debt ratio: 19% This is considered a major risk. If the company's operating cash flows are too small relative to the size of their debt, it increases their balance sheet risk. The company has less cash from operations to cover its expenses from servicing large debt and it increases the risk of liquidity issues. It also extends the time it would take for the company to pay back the debt in full, meaning it may not be able to easily pay it all off in a distress scenario. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (19% operating cash flow to total debt). Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Reported Earnings • May 01
First quarter 2025 earnings released: EPS: CN¥0.17 (vs CN¥0.16 in 1Q 2024) First quarter 2025 results: EPS: CN¥0.17 (up from CN¥0.16 in 1Q 2024). Revenue: CN¥26.6b (down 14% from 1Q 2024). Net income: CN¥1.93b (up 3.7% from 1Q 2024). Profit margin: 7.3% (up from 6.0% in 1Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to stay flat during the next 3 years compared to a 4.0% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 115% per year but the company’s share price has only increased by 18% per year, which means it is significantly lagging earnings growth. Major Estimate Revision • Apr 03
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from CN¥115.7b to CN¥109.4b. EPS estimate also fell from CN¥0.614 per share to CN¥0.549 per share. Net income forecast to grow 14% next year vs 13% growth forecast for Renewable Energy industry in Hong Kong. Consensus price target down from HK$5.05 to HK$4.84. Share price was steady at HK$4.44 over the past week. Reported Earnings • Mar 30
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: EPS: CN¥0.46 (up from CN¥0.35 in FY 2023). Revenue: CN¥112.4b (down 4.1% from FY 2023). Net income: CN¥4.70b (up 34% from FY 2023). Profit margin: 4.2% (up from 3.0% in FY 2023). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 6.9%. Revenue is forecast to stay flat during the next 3 years compared to a 4.1% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 116% per year but the company’s share price has only increased by 22% per year, which means it is significantly lagging earnings growth. Announcement • Mar 28
Huadian Power International Corporation Limited to Report Q1, 2025 Results on Apr 30, 2025 Huadian Power International Corporation Limited announced that they will report Q1, 2025 results on Apr 30, 2025 Announcement • Dec 27
Huadian Power International Corporation Limited to Report Fiscal Year 2024 Results on Mar 28, 2025 Huadian Power International Corporation Limited announced that they will report fiscal year 2024 results on Mar 28, 2025 Announcement • Dec 20
Huadian Power International Corporation Limited Appoints Mr. Chen Bin as Vice Chairman Huadian Power International Corporation Limited announced that Mr. Chen Bin, the executive director of the Company, has been elected by the Board as Vice Chairman of the Company with a term commencing from the conclusion of the Board Meeting and ending at the expiry of the term of the tenth session of the Board. The biographical details of Mr. Chen Bin are set out below: Mr. Chen Bin, Chinese nationality, born in September 1973, holds a doctoral degree in economics from the Hunan University. He joined the Company in January 2010 and currently serves as the executive director and the general manager of the Company. Mr. Chen Bin has successively worked in China Electric Power News, State Power Corporation, China Guodian Corporation and Guodian Finance Corporation Ltd. Mr. Chen Bin has twenty-seven years of experience in power enterprises management, law, and capital operation, etc. So far as the directors are aware and save as disclosed above, Mr. Chen Bin does not hold any other positions in the Company or any of its subsidiaries, did not hold any directorship in any listed companies in the past three years, does not hold other major appointments or professional qualifications, and Mr. Chen Bin has no relationship with any directors, supervisors, senior management, substantial shareholders or controlling shareholders of the Company. As at the date of this announcement, Mr. Chen Bin does not hold any interest in shares of the Company within the meaning of Part XV of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Announcement • Dec 18
Huadian Power International Corporation Limited Announces Resignation of Dai Jun as Executive Director, the Chairman and the Chairman of the Strategic Committee The board of directors of Huadian Power International Corporation Limited announced that Mr. Dai Jun has tendered his resignation as an executive director, the chairman and the chairman of the strategic committee of the Board of the Company due to reaching the retirement age. The aforesaid resignation shall become effective upon the approval for the appointment of a new director by the general meeting of the Company. After resignation, Mr. Dai Jun will no longer hold any position at the Company. Mr. Dai Jun has confirmed that he has no disagreement with the Board of the Company and the Company and there are no matters in relation to his resignation that need to be brought to the attention of the shareholders and creditors of the Company. During his tenure of service as a director, Mr. Dai Jun has been diligent and conscientious in performing his duties. Reported Earnings • Oct 31
Third quarter 2024 earnings released: EPS: CN¥0.16 (vs CN¥0.16 in 3Q 2023) Third quarter 2024 results: EPS: CN¥0.16. Revenue: CN¥31.6b (up 1.1% from 3Q 2023). Net income: CN¥1.93b (flat on 3Q 2023). Profit margin: 6.1% (in line with 3Q 2023). Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Renewable Energy industry in Hong Kong. Announcement • Sep 30
Huadian Power International Corporation Limited to Report Q3, 2024 Results on Oct 31, 2024 Huadian Power International Corporation Limited announced that they will report Q3, 2024 results on Oct 31, 2024 Upcoming Dividend • Sep 03
Upcoming dividend of CN¥0.08 per share Eligible shareholders must have bought the stock before 10 September 2024. Payment date: 05 November 2024. Payout ratio is a comfortable 55% and the cash payout ratio is 95%. Trailing yield: 4.2%. Lower than top quartile of Hong Kong dividend payers (8.3%). Higher than average of industry peers (3.8%). Major Estimate Revision • Aug 30
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from CN¥115.4b to CN¥113.0b. EPS estimate also fell from CN¥0.581 per share to CN¥0.517 per share. Net income forecast to grow 48% next year vs 30% growth forecast for Renewable Energy industry in Hong Kong. Consensus price target down from HK$4.80 to HK$4.68. Share price was steady at HK$4.12 over the past week. Reported Earnings • Aug 23
Second quarter 2024 earnings released: EPS: CN¥0.11 (vs CN¥0.11 in 2Q 2023) Second quarter 2024 results: EPS: CN¥0.11 (down from CN¥0.11 in 2Q 2023). Revenue: CN¥22.2b (down 19% from 2Q 2023). Net income: CN¥1.36b (down 18% from 2Q 2023). Profit margin: 6.1% (in line with 2Q 2023). Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 59% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Aug 13
Huadian Power International Corporation Limited Proposes Interim Dividend for the Six Months Ended 30 June 2024, Payable on 05 November 2024 Huadian Power International Corporation Limited proposed interim dividend of RMB 0.08 per share for the six months ended 30 June 2024. Date of shareholders' approval is 05 September 2024, Ex-dividend date is 10 September 2024, Record date is 16 September 2024 and Payment date is 05 November 2024. Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to HK$4.07, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 7x in the Renewable Energy industry in Hong Kong. Total returns to shareholders of 128% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$3.61 per share. Buy Or Sell Opportunity • Jul 02
Now 29% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to HK$4.92. The fair value is estimated to be HK$3.82, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.2% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 1.9% per annum. Earnings are also forecast to grow by 18% per annum over the same time period. Announcement • Jun 29
Huadian Power International Corporation Limited to Report First Half, 2024 Results on Aug 23, 2024 Huadian Power International Corporation Limited announced that they will report first half, 2024 results on Aug 23, 2024 Buy Or Sell Opportunity • Jun 28
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 13% to HK$4.73. The fair value is estimated to be HK$3.81, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 5.2% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 1.9% per annum. Earnings are also forecast to grow by 18% per annum over the same time period. Upcoming Dividend • Jun 13
Upcoming dividend of CN¥0.15 per share Eligible shareholders must have bought the stock before 20 June 2024. Payment date: 30 August 2024. Payout ratio is a comfortable 35% but the company is paying out more than the cash it is generating. Trailing yield: 3.1%. Lower than top quartile of Hong Kong dividend payers (7.8%). In line with average of industry peers (3.4%). Major Estimate Revision • Jun 11
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from CN¥112.2b to CN¥117.5b. EPS estimate increased from CN¥0.53 to CN¥0.601 per share. Net income forecast to grow 45% next year vs 25% growth forecast for Renewable Energy industry in Hong Kong. Consensus price target broadly unchanged at HK$4.70. Share price rose 3.5% to HK$4.96 over the past week. Announcement • May 16
Huadian Power International Corporation Limited, Annual General Meeting, Jun 17, 2024 Huadian Power International Corporation Limited, Annual General Meeting, Jun 17, 2024, at 14:00 China Standard Time. Location: jinan yanzi resort, no.14668 jingshi street, lixia district, jinan, shandong province, China Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$4.76, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 7x in the Renewable Energy industry in Hong Kong. Total returns to shareholders of 162% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$8.19 per share. Reported Earnings • Apr 27
First quarter 2024 earnings released: EPS: CN¥0.16 (vs CN¥0.093 in 1Q 2023) First quarter 2024 results: EPS: CN¥0.16 (up from CN¥0.093 in 1Q 2023). Revenue: CN¥31.0b (down 3.2% from 1Q 2023). Net income: CN¥1.86b (up 103% from 1Q 2023). Profit margin: 6.0% (up from 2.9% in 1Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 5.1% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, earnings per share has increased by 22% per year whereas the company’s share price has increased by 21% per year. Valuation Update With 7 Day Price Move • Apr 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to HK$4.72, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 7x in the Renewable Energy industry in Hong Kong. Total returns to shareholders of 162% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at HK$4.11 per share. Major Estimate Revision • Apr 05
Consensus EPS estimates fall by 17%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from CN¥115.4b to CN¥117.6b. EPS estimate fell from CN¥0.685 to CN¥0.569 per share. Net income forecast to grow 82% next year vs 23% growth forecast for Renewable Energy industry in Hong Kong. Consensus price target broadly unchanged at HK$4.48. Share price fell 2.9% to HK$4.07 over the past week. Announcement • Mar 29
Huadian Power International Corporation Limited to Report Q1, 2024 Results on Apr 27, 2024 Huadian Power International Corporation Limited announced that they will report Q1, 2024 results on Apr 27, 2024 Reported Earnings • Mar 28
Full year 2023 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2023 results: EPS: CN¥0.35 (up from CN¥0.08 loss in FY 2022). Revenue: CN¥117.2b (up 9.5% from FY 2022). Net income: CN¥4.52b (up CN¥5.32b from FY 2022). Profit margin: 3.9% (up from net loss in FY 2022). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) missed analyst estimates by 35%. Revenue is forecast to stay flat during the next 3 years compared to a 5.3% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 21% per year, which means it is well ahead of earnings. Announcement • Mar 27
Huadian Power International Corporation Limited Proposes Final Dividend for the Financial Year Ended 31 December 2023, Payable on 30 August 2024 Huadian Power International Corporation Limited proposed final dividend for the financial year ended 31 December 2023 of RMB 0.15 per share. Payment date is 30 August 2024. Announcement • Mar 26
Huadian Power International Corporation Limited Announces Board Changes Huadian Power International Corporation Limited announced that at its EGM held on March 26, 2024, shareholders approved the election of Mr. Zhao Wei and Mr. Zeng Qinghua as a non-executive Directors. At the EGM, Mr. Zhao Wei and Mr. Zeng Qinghua were elected as the non-executive Directors of the tenth session of the Board for a term commencing from the conclusion of the EGM and ending on the expiry of the term of the tenth session of the Board. At the sixth meeting of the tenth session of the Board held on 26 March 2024, Mr. Zhao Wei was appointed as a member of the Strategic Committee and Mr. Zeng Qinghua was appointed as a member of the Remuneration and Appraisal Committee, both with a term of office commencing from the conclusion of this Board meeting and ending on the expiry of the term of the tenth session of the Board. Reference is made to the announcement of the Company dated 29 February 2024 in relation to the resignation of Mr. Zhang Zhiqiang as a non-executive Director of the company and a member of the Remuneration and Appraisal Committee, and the resignation of Mr. Li Qiangde as a non- executive Director of the company and a member of the Strategic Committee, both with effect from the date of this announcement. Announcement • Feb 29
Huadian Power International Corporation Limited Announces Change of Non-Executive Directors The board of directors of Huadian Power International Corporation Limited announced that Mr. Zhang Zhiqiang has tendered his resignation as anon-executive director and a member of the Remuneration and Appraisal Committee of the Company due to reaching the retirement age; and Mr. Li Qiangde has tendered his resignation as a non-executive director and a member of the Strategic Committee of the Company due to reaching the retirement age as well. The aforesaid resignations shall become effective upon the approval for the appointment of new directors by the shareholders of the Company. The Board further announces that the Board has considered and unanimously approved at the fifth meeting of the tenth session of the Board held on 29 February 2024 to put forward twoordinary resolutions at the extraordinary general meeting to consider and approve the proposalfor the election of Mr. Zhao Wei ("Mr. Zhao") and Mr. Zeng Qinghua ("Mr. Zeng") as non- executive directors of the tenth session of the Board of the Company, respectively, with a term commencing from the conclusion of the extraordinary general meeting and ending at the expiry of the term of the tenth session of the Board and shall be eligible for re-election at that time. Mr. Zhao Wei, Chinese nationality, born in October 1967, is a senior economist and a master of business administration from Peking University. He is currently a director of Huadian Liaoning Energy Development Co. Ltd. . Mr. Zhao has successively worked for Hebei Electric Power Corporation, Hebei Hanfeng Power Plant, Hebei Fengyuan Industrial Co. Ltd. Hebei Electric Power Fuel Corporation, Hebei Huafeng Investment Co. Ltd., Hebei Huarui Energy Group Corporation Limited as the general manager, Huadian Power International Corporation Limited Hebei Branch as the deputy general manager, Huadian Power International Corporation Limited Tianjin Branch as the Person in Charge, Huadian Power International Corporation Limited Henan Branch as the general manager, Huadian Power International Corporation Limited Hebei Branch as the Person in Charge, and China Huadian Corporation Xiong'an Energy Co. Ltd. Mr. Zhao has more than thirty years of working experience in the fields of corporate management, power operations, and strategic investment. Mr. Zeng Qinghua, Chinese nationality, born in December 1967, is a professor-level senior engineer. He graduated from Northeast Electric Power College majoring in electric power engineering and automation. He currently serves as a director of Huadian Liaoning Energy Development Co. Ltd. and a director of Huadian Gansu Energy Co. Ltd. Mr. Zeng has successively worked for Jiamusi Power Plant, Heilongjiang Huadian Jiamusi Power Generation Co. Ltd., Guizhou Wujiang Hydropower Development Co. Ltd., Guizhou Huadian Tongzi (Zunyi) Power Generation Co. Ltd., China Huadian Corporation LimitedGuizhou Branch, China Huadian Corporation Limited Fujian Branch, and Fujian Huadian Furui Energy Development Co. Ltd. Mr. Zeng has over thirty years of working experience in the fields of corporate management, power engineering, and industrial development. Announcement • Dec 29
Huadian Power International Corporation Limited to Report Fiscal Year 2023 Results on Mar 28, 2024 Huadian Power International Corporation Limited announced that they will report fiscal year 2023 results on Mar 28, 2024 Major Estimate Revision • Nov 08
Consensus EPS estimates increase by 17% The consensus outlook for fiscal year 2023 has been updated. 2023 EPS estimate increased from CN¥0.498 to CN¥0.582. Revenue forecast steady at CN¥113.8b. Net income forecast to grow 356% next year vs 37% growth forecast for Renewable Energy industry in Hong Kong. Consensus price target broadly unchanged at HK$3.98. Share price fell 2.5% to HK$3.08 over the past week. New Risk • Nov 02
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.6% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (10% operating cash flow to total debt). Dividend is not well covered by earnings and cash flows. Payout ratio: 130% Cash payout ratio: 171% Minor Risk Shareholders have been diluted in the past year (3.6% increase in shares outstanding). Reported Earnings • Nov 01
Third quarter 2023 earnings released: EPS: CN¥0.16 (vs CN¥0.046 in 3Q 2022) Third quarter 2023 results: EPS: CN¥0.16 (up from CN¥0.046 in 3Q 2022). Revenue: CN¥31.3b (up 3.9% from 3Q 2022). Net income: CN¥1.92b (up 326% from 3Q 2022). Profit margin: 6.1% (up from 1.5% in 3Q 2022). The increase in margin was primarily driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 5.8% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has increased by 18% per year, which means it is well ahead of earnings. Announcement • Oct 17
Huadian Power International Corporation Limited to Report Q3, 2023 Results on Oct 30, 2023 Huadian Power International Corporation Limited announced that they will report Q3, 2023 results on Oct 30, 2023 Announcement • Oct 14
Huadian Power International Corporation Limited Provides Earning Guidance for the First Three Quarters of 2023 Huadian Power International Corporation Limited provided earning guidance for the first three quarters of 2023. For the period, the company estimated that the net profit attributable to the shareholders of the Company is between RMB 4.09 billion to RMB 4.91 billion for the period, representing an increase of RMB 1.765 billion to RMB 2.585 billion as compared with the same period of last year (before restatement), a year-on-year increase by 76 % to 111%; an increase of RMB1.753 billion to RMB 2.573 billion as compared with the same period of last year (after restatement), a year-on-year increase by 75% to 110%. Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: CN¥0.11 (vs CN¥0.08 in 2Q 2022) Second quarter 2023 results: EPS: CN¥0.11 (up from CN¥0.08 in 2Q 2022). Revenue: CN¥27.5b (up 33% from 2Q 2022). Net income: CN¥1.67b (up 110% from 2Q 2022). Profit margin: 6.1% (up from 3.8% in 2Q 2022). Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 88 percentage points per year, which is a significant difference in performance. Announcement • Jul 15
Huadian Power International Corporation Limited Provides Earning Guidance for the First Half of 2023 Huadian Power International Corporation Limited provided earning guidance for the first half of 2023. The company estimated that the net profit attributable to the shareholders of the Company is between RMB 2.35 billion to RMB 2.82 billion in the first half of 2023, representing an increase of RMB 705 million to RMB 1.175 billion as compared with the same period of last year (before restatement), a year-on-year increase by 43% to 71%; an increase of RMB 694 million to RMB 1.164 billion as compared with the same period of last year (after restatement), a year-on-year increase by 42% to 70%. Announcement • Jun 01
Huadian Power International Corporation Limited Announces Ordinary Final Dividend for the Financial Year Ended 31 December 2022, Payment Date 28 July 2023 Huadian Power International Corporation Limited announced Ordinary final dividend of RMB 0.2 per share For the financial year ended 31 December 2022. Ex-dividend date 05 June 2023, Record date 09 June 2023 and Payment date 28 July 2023. Upcoming Dividend • May 29
Upcoming dividend of CN¥0.20 per share at 5.2% yield Eligible shareholders must have bought the stock before 05 June 2023. Payment date: 25 August 2023. The company is not currently making a profit and is not cash flow positive. Trailing yield: 5.2%. Lower than top quartile of Hong Kong dividend payers (7.7%). Higher than average of industry peers (4.1%). Reported Earnings • Mar 30
Full year 2022 earnings released: CN¥0.08 loss per share (vs CN¥0.61 loss in FY 2021) Full year 2022 results: CN¥0.08 loss per share (improved from CN¥0.61 loss in FY 2021). Revenue: CN¥107.1b (up 2.5% from FY 2021). Net income: CN¥99.8m (up CN¥6.09b from FY 2021). Profit margin: 0.1% (up from net loss in FY 2021). Revenue is forecast to stay flat during the next 3 years compared to a 4.4% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 116 percentage points per year, which is a significant difference in performance. Board Change • Nov 16
Less than half of directors are independent There are 9 new directors who have joined the board in the last 3 years. Of these new board members, 4 were independent directors. The company's board is composed of: 4 independent directors. 8 non-independent directors. Independent Non-Executive Director Yuesheng Wang was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Oct 30
Third quarter 2022 earnings released: EPS: CN¥0.051 (vs CN¥0.40 loss in 3Q 2021) Third quarter 2022 results: EPS: CN¥0.051 (up from CN¥0.40 loss in 3Q 2021). Revenue: CN¥30.1b (up 23% from 3Q 2021). Net income: CN¥1.13b (up CN¥3.62b from 3Q 2021). Profit margin: 3.8% (up from net loss in 3Q 2021). The move to profitability was driven by higher revenue. Revenue is forecast to stay flat during the next 3 years compared to a 5.3% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 27
Second quarter 2022 earnings released: EPS: CN¥0.12 (vs CN¥0.20 in 2Q 2021) Second quarter 2022 results: EPS: CN¥0.12 (down from CN¥0.20 in 2Q 2021). Revenue: CN¥20.1b (down 17% from 2Q 2021). Net income: CN¥1.18b (down 44% from 2Q 2021). Profit margin: 5.9% (down from 8.7% in 2Q 2021). The decrease in margin was driven by lower revenue. Over the next year, revenue is forecast to grow 8.3%, compared to a 5.8% growth forecast for the Renewable Energy industry in Hong Kong. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 86 percentage points per year, which is a significant difference in performance. Upcoming Dividend • Jun 27
Upcoming dividend of CN¥0.25 per share Eligible shareholders must have bought the stock before 04 July 2022. Payment date: 26 August 2022. The company is not currently making a profit and is not cash flow positive. Trailing yield: 11%. Within top quartile of Hong Kong dividend payers (7.9%). Higher than average of industry peers (3.5%). Reported Earnings • Apr 30
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: CN¥0.04 (down from CN¥0.095 in 1Q 2021). Revenue: CN¥28.8b (down 1.5% from 1Q 2021). Net income: CN¥616.7m (down 49% from 1Q 2021). Profit margin: 2.1% (down from 4.1% in 1Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) exceeded analyst estimates. Over the next year, revenue is forecast to grow 4.7%, compared to a 6.3% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Board Change • Apr 27
Less than half of directors are independent There are 9 new directors who have joined the board in the last 3 years. Of these new board members, 4 were independent directors. The company's board is composed of: 4 independent directors. 8 non-independent directors. Independent Non-Executive Director Yuesheng Wang was the last independent director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Lack of board continuity. Reported Earnings • Mar 28
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: CN¥0.61 loss per share (down from CN¥0.36 profit in FY 2020). Revenue: CN¥104.4b (up 12% from FY 2020). Net loss: CN¥4.97b (down 212% from profit in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 100%. Over the next year, revenue is expected to shrink by 3.3% compared to a 6.8% growth forecast for the industry in Hong Kong. Over the last 3 years on average, earnings per share has fallen by 26% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Major Estimate Revision • Jan 28
Consensus EPS estimates increase by 95% The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from CN¥99.6b to CN¥100.7b. EPS estimate increased from CN¥0.14 to CN¥0.28 per share. Net income forecast to grow 162% next year vs 18% growth forecast for Renewable Energy industry in Hong Kong. Consensus price target broadly unchanged at HK$3.11. Share price fell 8.5% to HK$2.80 over the past week. Valuation Update With 7 Day Price Move • Dec 07
Investor sentiment improved over the past week After last week's 17% share price gain to HK$2.85, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 9x in the Renewable Energy industry in Hong Kong. Total returns to shareholders of 4.1% over the past three years.