China Resources Power Holdings (SEHK:836) - Share price, News & Analysis

836 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	1/6
Financial Health	0/6
Dividends	1/6

836 Stock Overview

China Resources Power Holdings Company Limited, an investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People’s Republic of China.

Rewards

Trading at 44.4% below our estimate of its fair value

Earnings are forecast to grow 40.22% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (1.8%) are lower than last year (10.9%)

China Resources Power Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Resources Power Holdings
Historical stock prices
Current Share Price	HK$14.90
52 Week High	HK$28.85
52 Week Low	HK$9.60
Beta	0.61
1 Month Change	-0.40%
3 Month Change	4.93%
1 Year Change	56.68%
3 Year Change	30.70%
5 Year Change	-2.74%
Change since IPO	441.82%

Recent News & Updates

May 10

Investors Could Be Concerned With China Resources Power Holdings' (HKG:836) Returns On Capital

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

	836	HK Renewable Energy	HK Market
7D	10.4%	4.5%	2.1%
1Y	56.7%	18.4%	-23.3%

Return vs Industry: 836 exceeded the Hong Kong Renewable Energy industry which returned 18.4% over the past year.

Return vs Market: 836 exceeded the Hong Kong Market which returned -23.3% over the past year.

Price Volatility

Is 836's price volatile compared to industry and market?
836 volatility
836 Average Weekly Movement	7.2%
Renewable Energy Industry Average Movement	6.4%
Market Average Movement	7.0%
10% most volatile stocks in HK Market	13.8%
10% least volatile stocks in HK Market	3.3%

Stable Share Price: 836 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 836's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	21,252	Baofeng Shi	https://www.cr-power.com

China Resources Power Holdings Company Limited, an investment holding company, invests in, develops, operates, and manages power plants and coal mines in the People’s Republic of China. The company operates in two segments, Thermal Power and Renewable Energy. It operates and manages coal- and gas-fired power plants, wind farms, photovoltaic power plants, hydro-electric power plants, and other clean and renewable energy projects.

China Resources Power Holdings Fundamentals Summary

How do China Resources Power Holdings's earnings and revenue compare to its market cap?
836 fundamental statistics
Market Cap	HK$71.68b
Earnings (TTM)	HK$1.59b
Revenue (TTM)	HK$89.80b

45.0x

P/E Ratio

0.8x

P/S Ratio

Is 836 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
836 income statement (TTM)
Revenue	HK$89.80b
Cost of Revenue	HK$62.28b
Gross Profit	HK$27.52b
Other Expenses	HK$25.93b
Earnings	HK$1.59b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.33
Gross Margin	30.65%
Net Profit Margin	1.77%
Debt/Equity Ratio	125.9%

How did 836 perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

89%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 836 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 836?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 836. This is calculated by dividing 836's market cap by their current preferred multiple.
What is 836's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	HK$71.68b

836 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.3x
Enterprise Value/EBITDA	10.4x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does 836's PE Ratio compare to its peers?

836 PE Ratio vs Peers

The above table shows the PE ratio for 836 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.8x

Forward PE

Price-To-Earnings vs Peers: 836 is expensive based on its Price-To-Earnings Ratio (45x) compared to the peer average (10.8x).

Price to Earnings Ratio vs Industry

How does 836's PE Ratio compare vs other companies in the Renewable Energy Industry?

Price-To-Earnings vs Industry: 836 is expensive based on its Price-To-Earnings Ratio (45x) compared to the Hong Kong Renewable Energy industry average (8x)

Price to Earnings Ratio vs Fair Ratio

What is 836's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

836 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	45x
Fair PE Ratio	23.5x

Price-To-Earnings vs Fair Ratio: 836 is expensive based on its Price-To-Earnings Ratio (45x) compared to the estimated Fair Price-To-Earnings Ratio (23.5x).

Share Price vs Fair Value

What is the Fair Price of 836 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 836 (HK$14.9) is trading below our estimate of fair value (HK$26.82)

Significantly Below Fair Value: 836 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: 836 is poor value based on its PEG Ratio (1.1x)

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Future Growth

How is China Resources Power Holdings forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

40.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 836's forecast earnings growth (40.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 836's earnings (40.2% per year) are forecast to grow faster than the Hong Kong market (17% per year).

High Growth Earnings: 836's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 836's revenue (7.7% per year) is forecast to grow slower than the Hong Kong market (10.2% per year).

High Growth Revenue: 836's revenue (7.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 836's Return on Equity is forecast to be low in 3 years time (13.8%).

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Past Performance

How has China Resources Power Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

2.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 836 has a large one-off loss of HK$587.7M impacting its December 31 2021 financial results.

Growing Profit Margin: 836's current net profit margins (1.8%) are lower than last year (10.9%).

Past Earnings Growth Analysis

Earnings Trend: 836's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: 836's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 836 had negative earnings growth (-79%) over the past year, making it difficult to compare to the Renewable Energy industry average (2.8%).

Return on Equity

High ROE: 836's Return on Equity (0.4%) is considered low.

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Financial Health

How is China Resources Power Holdings's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 836's short term assets (HK$53.9B) do not cover its short term liabilities (HK$68.1B).

Long Term Liabilities: 836's short term assets (HK$53.9B) do not cover its long term liabilities (HK$112.2B).

Debt to Equity History and Analysis

Debt Level: 836's net debt to equity ratio (118.5%) is considered high.

Reducing Debt: 836's debt to equity ratio has increased from 122.8% to 125.9% over the past 5 years.

Debt Coverage: 836's debt is not well covered by operating cash flow (5.5%).

Interest Coverage: 836's interest payments on its debt are not well covered by EBIT (1.7x coverage).

Balance Sheet

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Dividend

What is China Resources Power Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.98%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 836's dividend (1.98%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.74%).

High Dividend: 836's dividend (1.98%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.89%).

Stability and Growth of Payments

Stable Dividend: 836's dividend payments have been volatile in the past 10 years.

Growing Dividend: 836's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (89.1%), 836's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 836 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure

CEO

Baofeng Shi (48 yo)

0.75

Tenure

HK$503,000

Compensation

Mr. Baofeng Shi serves as Executive Director & President at China Resources Power Holdings Company Limited since September 30, 2021. He had been President and Executive Director at China Resources Gas Grou...

CEO Compensation Analysis

Compensation vs Market: Baofeng's total compensation ($USD64.08K) is below average for companies of similar size in the Hong Kong market ($USD625.80K).

Compensation vs Earnings: Insufficient data to compare Baofeng's compensation with company performance.

Leadership Team

Experienced Management: 836's management team is considered experienced (3.7 years average tenure).

Board Members

Experienced Board: 836's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31