SEHK:902

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Huaneng Power International

Executive Summary

Huaneng Power International, Inc., through its subsidiaries, generates and sells electricity and heat to the regional or provincial grid companies in the People’s Republic of China, Singapore, and Pakistan. More Details


Snowflake Analysis

Fair value second-rate dividend payer.

Share Price & News

How has Huaneng Power International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 902's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.0%

902

-0.2%

HK Renewable Energy

1.2%

HK Market


1 Year Return

-21.6%

902

-12.6%

HK Renewable Energy

2.3%

HK Market

Return vs Industry: 902 underperformed the Hong Kong Renewable Energy industry which returned -12.6% over the past year.

Return vs Market: 902 underperformed the Hong Kong Market which returned 2.3% over the past year.


Shareholder returns

902IndustryMarket
7 Day-3.0%-0.2%1.2%
30 Day-1.7%4.2%7.0%
90 Day-11.4%1.3%3.6%
1 Year-17.3%-21.6%-7.9%-12.6%6.6%2.3%
3 Year-37.7%-43.7%-30.7%-38.3%-4.7%-15.1%
5 Year-54.3%-65.1%-45.9%-55.9%19.1%-1.1%

Price Volatility Vs. Market

How volatile is Huaneng Power International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Huaneng Power International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 902 (HK$2.94) is trading below our estimate of fair value (HK$31.17)

Significantly Below Fair Value: 902 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 902 is poor value based on its PE Ratio (16.3x) compared to the HK Renewable Energy industry average (7.7x).

PE vs Market: 902 is poor value based on its PE Ratio (16.3x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 902 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 902 is good value based on its PB Ratio (0.3x) compared to the HK Renewable Energy industry average (0.5x).


Next Steps

Future Growth

How is Huaneng Power International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 902's forecast earnings growth (13.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 902's earnings (13.9% per year) are forecast to grow slower than the Hong Kong market (22.2% per year).

High Growth Earnings: 902's earnings are forecast to grow, but not significantly.

Revenue vs Market: 902's revenue (2.7% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 902's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 902's Return on Equity is forecast to be low in 3 years time (7.6%).


Next Steps

Past Performance

How has Huaneng Power International performed over the past 5 years?

-49.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 902 has a large one-off loss of CN¥4.3B impacting its June 30 2020 financial results.

Growing Profit Margin: 902's current net profit margins (1.4%) are lower than last year (1.5%).


Past Earnings Growth Analysis

Earnings Trend: 902's earnings have declined by 49.8% per year over the past 5 years.

Accelerating Growth: 902's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 902 had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the Renewable Energy industry average (9.1%).


Return on Equity

High ROE: 902's Return on Equity (3.4%) is considered low.


Next Steps

Financial Health

How is Huaneng Power International's financial position?


Financial Position Analysis

Short Term Liabilities: 902's short term assets (CN¥65.9B) do not cover its short term liabilities (CN¥136.1B).

Long Term Liabilities: 902's short term assets (CN¥65.9B) do not cover its long term liabilities (CN¥151.6B).


Debt to Equity History and Analysis

Debt Level: 902's debt to equity ratio (170%) is considered high.

Reducing Debt: 902's debt to equity ratio has reduced from 199.4% to 170% over the past 5 years.

Debt Coverage: 902's debt is not well covered by operating cash flow (15.6%).

Interest Coverage: 902's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Huaneng Power International current dividend yield, its reliability and sustainability?

5.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 902's dividend (5.32%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 902's dividend (5.32%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 902's dividend payments have been volatile in the past 10 years.

Growing Dividend: 902's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.7%), 902's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 902's dividends in 3 years are forecast to be covered by earnings (56.6% payout ratio).


Next Steps

Management

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

0.8yrs

Average management tenure


CEO

Ping Zhao (58 yo)

0.58

Tenure

CN¥894,000

Compensation

Mr. Ping Zhao serves as Executive Director at Huaneng Power International, Inc. since June 16, 2020. Mr. Zhao serves as President at Huaneng Power International, Inc. since March 5, 2020 and served as its ...


Leadership Team

NamePositionTenureCompensationOwnership
Keyu Zhao
Executive Chairman of the Board0.58yrCN¥1.03mno data
Ping Zhao
President & Executive Director0.58yrCN¥894.00kno data
Lixin Huang
Chief Accountant4.75yrsCN¥894.00kno data
Senrong Wu
Head of the Discipline Inspection Group & VPno dataCN¥894.00kno data
Chaoquan Huang
VP & Company Secretary3.42yrsCN¥808.00kno data
Liu Wei
Chief Engineer0.75yrno datano data
Qiyang Fu
Chief Economist0.75yrno datano data
Wang Yutian
Executive officerno datano datano data
Lang Chuan Jin
Executive officerno datano datano data

0.8yrs

Average Tenure

57yo

Average Age

Experienced Management: 902's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Keyu Zhao
Executive Chairman of the Board0.58yrCN¥1.03mno data
Ping Zhao
President & Executive Director0.58yrCN¥894.00kno data
Jian Huang
Non-Executive Director12.17yrsno datano data
Qing Xia
Independent Non-Executive Director0.33yrCN¥37.00kno data
Xianzhi Zhang
Independent Non-Executive Director3.33yrsCN¥300.00kno data
Hongbo Guo
Non-Executive Director8.67yrsno datano data
Shuqing Li
Chairman of the Supervisory Committee0.33yrCN¥764.00kno data
Dabin Mi
Non-Executive Director6.08yrsno datano data
Xuan Mu
Vice Chairman of the Supervisory Committee6.08yrsCN¥65.00kno data
Mengzhou Xu
Independent Non-executive Director4.33yrsCN¥300.00kno data
Jizhen Liu
Independent Non-Executive Director3.33yrsCN¥300.00kno data
Heng Cheng
Non Executive Director3.33yrsno datano data

3.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 902's board of directors are considered experienced (3.3 years average tenure).


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.


Top Shareholders

Company Information

Huaneng Power International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Huaneng Power International, Inc.
  • Ticker: 902
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: HK$77.041b
  • Shares outstanding: 15.70b
  • Website: https://www.hpi.com.cn

Number of Employees


Location

  • Huaneng Power International, Inc.
  • Huaneng Building
  • 6 Fuxingmennei Street
  • Beijing
  • 100031
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HNPNYSE (New York Stock Exchange)SPON ADR H SHSUSUSDOct 1994
HUPDB (Deutsche Boerse AG)SPON ADR H SHSDEEUROct 1994
K3FDSGX (Singapore Exchange)SPON ADR H SHSSGUSDOct 1994
HUNG.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDJan 1998
HUP1DB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURJan 1998
902SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDJan 1998
902SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJan 1998
902SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDJan 1998
600011SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYDec 2001
600011XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYDec 2001

Biography

Huaneng Power International, Inc., through its subsidiaries, generates and sells electricity and heat to the regional or provincial grid companies in the People’s Republic of China, Singapore, and Pakistan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 12:41
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.