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.
Rewards
Risk Analysis
Snowflake Analysis
Proven track record second-rate dividend payer.
Similar Companies
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.1%
902
0.4%
HK Renewable Energy
2.9%
HK Market
1 Year Return
-30.6%
902
-22.1%
HK Renewable Energy
-3.8%
HK Market
Return vs Industry: 902 underperformed the Hong Kong Renewable Energy industry which returned -22.1% over the past year.
Return vs Market: 902 underperformed the Hong Kong Market which returned -3.8% over the past year.
Shareholder returns
| 902 | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 0.4% | 2.9% |
| 30 Day | -12.2% | -6.4% | -4.1% |
| 90 Day | -8.2% | -1.5% | 2.9% |
| 1 Year | -28.9%-30.6% | -19.3%-22.1% | -0.2%-3.8% |
| 3 Year | -27.9%-35.1% | -22.6%-29.9% | 15.3%3.7% |
| 5 Year | -51.5%-62.7% | -42.5%-51.6% | 16.8%-2.7% |
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
2 weeks ago | Simply Wall St
We Think Huaneng Power International (HKG:902) Is Taking Some Risk With Its Debt2 months ago | Simply Wall St
Here's What Huaneng Power International, Inc.'s (HKG:902) P/E Is Telling Us3 months ago | Simply Wall St
Is Huaneng Power International (HKG:902) A Risky Investment?Valuation
Is Huaneng Power International undervalued compared to its fair value and its price relative to the market?
10.74x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 902 (HK$3.47) is trading above our estimate of fair value (HK$1.9)
Significantly Below Fair Value: 902 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 902 is poor value based on its PE Ratio (10.7x) compared to the Renewable Energy industry average (8.1x).
PE vs Market: 902 is poor value based on its PE Ratio (10.7x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 902 is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: 902 is overvalued based on its PB Ratio (0.5x) 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?
14.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 902's forecast earnings growth (14.1% per year) is above the savings rate (1.6%).
Earnings vs Market: 902's earnings (14.1% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).
High Growth Earnings: 902's earnings are forecast to grow, but not significantly.
Revenue vs Market: 902's revenue (0.5% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).
High Growth Revenue: 902's revenue (0.5% 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 (8%).
Next Steps
Past Performance
How has Huaneng Power International performed over the past 5 years?
-39.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 902 has high quality earnings.
Growing Profit Margin: 902's current net profit margins (2.6%) are higher than last year (0.5%).
Past Earnings Growth Analysis
Earnings Trend: 902's earnings have declined by -39.8% per year over the past 5 years.
Accelerating Growth: 902's earnings growth over the past year (430%) exceeds its 5-year average (-39.8% per year).
Earnings vs Industry: 902 earnings growth over the past year (430%) exceeded the Renewable Energy industry 4.6%.
Return on Equity
High ROE: 902's Return on Equity (5.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Huaneng Power International's financial position?
Financial Position Analysis
Short Term Liabilities: 902's short term assets (CN¥60.6B) do not cover its short term liabilities (CN¥142.3B).
Long Term Liabilities: 902's short term assets (CN¥60.6B) do not cover its long term liabilities (CN¥152.5B).
Debt to Equity History and Analysis
Debt Level: 902's debt to equity ratio (227%) is considered high.
Reducing Debt: 902's debt to equity ratio has increased from 190.3% to 227% over the past 5 years.
Debt Coverage: 902's debt is not well covered by operating cash flow (14%).
Interest Coverage: 902's interest payments on its debt are not well covered by EBIT (2x coverage).
Balance Sheet
Inventory Level: 902 has a high level of physical assets or inventory.
Debt Coverage by Assets: 902's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Huaneng Power International's current dividend yield, its reliability and sustainability?
3.21%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 902's dividend (3.21%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.25%).
High Dividend: 902's dividend (3.21%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.33%).
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 not increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.4%), 902's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 902's dividends in 3 years are forecast to be covered by earnings (55% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Keyu Zhao (53yo)
1.6yrs
Tenure
CN¥409,000
Compensation
Mr. Keyu Zhao has been President of Huaneng Power International, Inc. since July 31, 2018. He has been the Chief of Planning Department of Huaneng Group since December 2009. Mr. Zhao has over 20 years of e ...
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 1.1yrs | no data | no data | |
| President | 1.6yrs | CN¥409.00k | no data | |
| Chief Accountant | 4.1yrs | CN¥855.00k | no data | |
| VP, GM of Department of Administration & Company Secretary | 0yrs | CN¥757.00k | no data | |
| Executive officer | 0yrs | no data | no data | |
| Executive officer | 0yrs | no data | no data |
1.6yrs
Average Tenure
57.5yo
Average Age
Experienced Management: 902's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 1.1yrs | no data | no data | |
| Non-Executive Director | 11.5yrs | no data | no data | |
| Independent Non-Executive Director | 2.7yrs | CN¥74.00k | no data | |
| Chairman of the Supervisory Committee | 5.4yrs | no data | no data | |
| Non-Executive Director | 8yrs | no data | no data | |
| Non-Executive Director | 5.4yrs | no data | no data | |
| Independent Non-Executive Director | 5.4yrs | CN¥74.00k | no data | |
| Vice Chairman of the Supervisory Committee | 5.4yrs | CN¥65.00k | no data | |
| Independent Non-executive Director | 3.7yrs | CN¥74.00k | no data | |
| Independent Non-Executive Director | 2.7yrs | CN¥74.00k | no data |
5.4yrs
Average Tenure
54.5yo
Average Age
Experienced Board: 902's board of directors are considered experienced (5.4 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$76.641b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HNP | NYSE (New York Stock Exchange) | ADR EACH REP 40 'H' SHS CNY1 | US | USD | Oct 1994 | |
| HUP | DB (Deutsche Boerse AG) | ADR EACH REP 40 'H' SHS CNY1 | DE | EUR | Oct 1994 | |
| K3FD | SGX (Singapore Exchange) | ADR EACH REP 40 'H' SHS CNY1 | SG | USD | Oct 1994 | |
| HUNG.F | OTCPK (Pink Sheets LLC) | Yes | Foreign Shares-Foreign Listed | US | USD | Jan 1998 |
| HUP1 | DB (Deutsche Boerse AG) | Yes | Foreign Shares-Foreign Listed | DE | EUR | Jan 1998 |
| 902 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jan 1998 |
| 902 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jan 1998 |
| 902 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Foreign Shares-Foreign Listed | HK | HKD | Jan 1998 |
| 600011 | SHSE (Shanghai Stock Exchange) | Domestic Shares | CN | CNY | Dec 2001 | |
| 600011 | XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect) | Domestic Shares | CN | CNY | Dec 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. It is involved in the development, investment, construction, operation, and management of power plants and related projects; and generation, wholesale, and retail of power and other relating utilities. The company generates power from coal, wind, gas, oil, biomass, solar, and hydro resources. It is also involved in the sale of coal ash and lime; provision of loading, warehousing, and conveying services; photovoltaic power generation projects development and construction; and provision of thermal energy and cold energy services, as well as thermal heating services. In addition, the company engages in the repair of power equipment; provision of water supply and transportation services; construction and operation of electricity distribution networks and heating pipe networks; power supply, energy transmission, and substation project contracting activities; cargo transportation along domestic coastal areas; port management, investment, and development activities; and port provision, and cargo loading and storage activities. Further, it is involved in the management of industrial water and waste, as well as provides environment engineering, and information technology and management consulting services. Additionally, it sells raw and processed coal; and provides central heat, and plumbing and pipe installation services, as well as desalinated water. As of April 25, 2019, the company had controlled generating capacity of 105,973 megawatts and a total generating capacity of 93,225 megawatts. Huaneng Power International, Inc. was founded in 1994 and is headquartered in Beijing, the People’s Republic of China.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/18 12:40 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.