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Huaneng Power International

SEHK:902
Snowflake Description

Moderate growth potential second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
902
SEHK
HK$100B
Market Cap
  1. Home
  2. HK
  3. Utilities
Company description

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. The last earnings update was 77 days ago. More info.


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902 Share Price and Events
7 Day Returns
-1.9%
SEHK:902
-2.1%
HK Renewable Energy
-1.1%
HK Market
1 Year Returns
-17%
SEHK:902
-15.2%
HK Renewable Energy
-6.5%
HK Market
902 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Huaneng Power International (902) -1.9% -4.7% -2.5% -17% 2.6% -49.7%
HK Renewable Energy -2.1% -1.6% -6.3% -15.2% -11.4% -48.8%
HK Market -1.1% 3.4% -7.7% -6.5% 17.4% 4.2%
1 Year Return vs Industry and Market
  • 902 underperformed the Renewable Energy industry which returned -15.2% over the past year.
  • 902 underperformed the Market in Hong Kong which returned -6.5% over the past year.
Price Volatility
902
Industry
5yr Volatility vs Market
Related Companies

902 Value

 Is Huaneng Power International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Huaneng Power International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Huaneng Power International.

SEHK:902 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:902
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Renewable Energy Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.47 (1 + (1- 25%) (235.04%))
1.201
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.201 * 5.96%)
9.16%

Discounted Cash Flow Calculation for SEHK:902 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Huaneng Power International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:902 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 9.16%)
2020 9,468.37 Analyst x3 8,673.84
2021 21,079.01 Analyst x2 17,689.76
2022 20,618.00 Analyst x1 15,850.91
2023 19,923.00 Analyst x1 14,031.31
2024 19,564.24 Est @ -1.8% 12,622.41
2025 19,435.19 Est @ -0.66% 11,486.93
2026 19,462.24 Est @ 0.14% 10,537.65
2027 19,598.15 Est @ 0.7% 9,720.80
2028 19,811.71 Est @ 1.09% 9,002.12
2029 20,081.89 Est @ 1.36% 8,359.17
Present value of next 10 years cash flows CN¥117,974.89
SEHK:902 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥20,081.89 × (1 + 2%) ÷ (9.16% – 2%)
CN¥286,204.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥286,204.93 ÷ (1 + 9.16%)10
CN¥119,133.99
SEHK:902 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥117,974.89 + CN¥119,133.99
CN¥237,108.88
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥237,108.88 / 15,698.09
CN¥15.1
SEHK:902 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:902)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥15.1 x 1.137
HK$17.17
Value per share (HKD) From above. HK$17.17
Current discount Discount to share price of HK$4.65
= -1 x (HK$4.65 - HK$17.17) / HK$17.17
72.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Huaneng Power International is available for.
Intrinsic value
>50%
Share price is HK$4.65 vs Future cash flow value of HK$17.17
Current Discount Checks
For Huaneng Power International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Huaneng Power International's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Huaneng Power International's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Huaneng Power International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Huaneng Power International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:902 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥0.16
SEHK:902 Share Price ** SEHK (2019-07-15) in HKD HK$4.65
SEHK:902 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥4.09
Hong Kong Renewable Energy Industry PE Ratio Median Figure of 24 Publicly-Listed Renewable Energy Companies 9.51x
Hong Kong Market PE Ratio Median Figure of 1,503 Publicly-Listed Companies 10.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Huaneng Power International.

SEHK:902 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:902 Share Price ÷ EPS (both in CNY)

= 4.09 ÷ 0.16

25.32x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Huaneng Power International is overvalued based on earnings compared to the HK Renewable Energy industry average.
  • Huaneng Power International is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Huaneng Power International's expected growth come at a high price?
Raw Data
SEHK:902 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.32x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
21.3%per year
Hong Kong Renewable Energy Industry PEG Ratio Median Figure of 17 Publicly-Listed Renewable Energy Companies 0.73x
Hong Kong Market PEG Ratio Median Figure of 477 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

SEHK:902 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.32x ÷ 21.3%

1.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Huaneng Power International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Huaneng Power International's assets?
Raw Data
SEHK:902 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥5.49
SEHK:902 Share Price * SEHK (2019-07-15) in HKD HK$4.65
SEHK:902 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥4.09
Hong Kong Renewable Energy Industry PB Ratio Median Figure of 27 Publicly-Listed Renewable Energy Companies 0.66x
Hong Kong Market PB Ratio Median Figure of 2,190 Publicly-Listed Companies 0.92x
SEHK:902 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:902 Share Price ÷ Book Value per Share (both in CNY)

= 4.09 ÷ 5.49

0.74x

* Primary Listing of Huaneng Power International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Huaneng Power International is overvalued based on assets compared to the HK Renewable Energy industry average.
X
Value checks
We assess Huaneng Power International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Renewable Energy industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Renewable Energy industry average (and greater than 0)? (1 check)
  5. Huaneng Power International has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

902 Future Performance

 How is Huaneng Power International expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
21.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Huaneng Power International expected to grow at an attractive rate?
  • Huaneng Power International's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Huaneng Power International's earnings growth is expected to exceed the Hong Kong market average.
  • Huaneng Power International's revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:902 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:902 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 21.3%
SEHK:902 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 1.1%
Hong Kong Renewable Energy Industry Earnings Growth Rate Market Cap Weighted Average 17.8%
Hong Kong Renewable Energy Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:902 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:902 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 173,176 12,092 1
2022-12-31 171,740 11,064 1
2021-12-31 181,755 39,668 8,790 12
2020-12-31 177,368 39,113 7,156 13
2019-12-31 174,208 36,704 5,694 11
SEHK:902 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 172,097 30,121 2,513
2018-12-31 169,861 28,892 1,097
2018-09-30 167,708 31,005 869
2018-06-30 164,102 31,074 2,909
2018-03-31 158,809 31,973 2,261
2017-12-31 152,970 30,076 1,674
2017-09-30 149,302 27,638 2,066
2017-06-30 145,435 29,941 3,391
2017-03-31 140,784 31,042 6,030
2016-12-31 138,150 37,814 10,382
2016-09-30 131,916 38,608 11,682
2016-06-30 127,749 40,490 12,507

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Huaneng Power International's earnings are expected to grow significantly at over 20% yearly.
  • Huaneng Power International's revenue is expected to grow by 1.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:902 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Huaneng Power International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:902 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.80 0.80 0.80 1.00
2022-12-31 0.73 0.73 0.73 1.00
2021-12-31 0.50 0.66 0.36 9.00
2020-12-31 0.42 0.62 0.27 12.00
2019-12-31 0.33 0.46 0.27 11.00
SEHK:902 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 0.16
2018-12-31 0.07
2018-09-30 0.05
2018-06-30 0.19
2018-03-31 0.15
2017-12-31 0.11
2017-09-30 0.14
2017-06-30 0.22
2017-03-31 0.39
2016-12-31 0.68
2016-09-30 0.77
2016-06-30 0.84

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Huaneng Power International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Huaneng Power International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Huaneng Power International has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

902 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Huaneng Power International's growth in the last year to its industry (Renewable Energy).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Huaneng Power International's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Huaneng Power International's 1-year earnings growth exceeds its 5-year average (11.1% vs -36%)
  • Huaneng Power International's earnings growth has exceeded the HK Renewable Energy industry average in the past year (11.1% vs 2.6%).
Earnings and Revenue History
Huaneng Power International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Huaneng Power International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:902 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 172,097.11 2,512.86 4,222.72 46.16
2018-12-31 169,861.16 1,096.53 4,213.78 46.22
2018-09-30 167,707.55 868.94 3,950.12 33.08
2018-06-30 164,101.55 2,908.82 3,958.62 33.79
2018-03-31 158,808.87 2,261.37 3,904.48 46.73
2017-12-31 152,970.20 1,673.88 3,881.47 45.12
2017-09-30 149,301.87 2,065.86 3,695.96 20.25
2017-06-30 145,434.59 3,390.81 4,066.29 17.38
2017-03-31 140,784.06 6,029.83 3,908.25
2016-12-31 138,150.30 10,382.41 4,174.40
2016-09-30 131,915.85 11,682.21 3,869.83
2016-06-30 127,748.80 12,506.65 3,740.61
2016-03-31 129,570.60 13,756.53 3,607.05
2015-12-31 128,904.87 13,786.05 3,375.64
2015-09-30 131,592.41 14,080.24 3,374.76
2015-06-30 133,148.87 13,659.29 3,421.29
2015-03-31 137,673.48 13,056.89 3,409.85
2014-12-31 140,026.69 12,182.59 3,341.58
2014-09-30 140,278.56 12,670.57 3,190.15
2014-06-30 141,953.84 12,207.38 3,042.30
2014-03-31 138,327.57 12,126.26 2,943.71
2013-12-31 133,832.87 10,520.13 2,868.44
2013-09-30 133,087.61 10,860.76 2,797.12
2013-06-30 130,848.51 9,554.81 2,646.73
2013-03-31 131,841.48 7,502.95 2,627.13
2012-12-31 133,966.66 5,868.65 2,560.63
2012-09-30 133,726.71 4,052.43 2,477.62

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Huaneng Power International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Huaneng Power International used its assets less efficiently than the HK Renewable Energy industry average last year based on Return on Assets.
  • Huaneng Power International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Huaneng Power International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Renewable Energy industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Huaneng Power International has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

902 Health

 How is Huaneng Power International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Huaneng Power International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Huaneng Power International's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Huaneng Power International's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Huaneng Power International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Huaneng Power International Company Filings, last reported 3 months ago.

SEHK:902 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 105,492.21 207,709.13 15,077.88
2018-12-31 101,786.20 252,876.50 15,838.10
2018-09-30 98,339.13 239,160.00 13,639.50
2018-06-30 93,825.37 240,915.37 16,280.22
2018-03-31 94,346.43 216,303.06 15,999.79
2017-12-31 93,145.90 238,867.09 9,487.02
2017-09-30 93,621.42 241,051.12 16,364.79
2017-06-30 88,377.22 241,735.32 12,247.27
2017-03-31 93,069.09 232,642.22 11,143.44
2016-12-31 107,190.72 222,740.38 10,214.18
2016-09-30 98,687.11 156,908.73 7,650.27
2016-06-30 96,841.67 164,468.10 8,940.38
2016-03-31 101,389.57 146,185.60 9,057.94
2015-12-31 95,939.86 170,473.98 7,553.52
2015-09-30 90,653.85 175,472.17 9,827.52
2015-06-30 86,065.97 171,771.06 10,189.91
2015-03-31 87,057.47 172,089.93 9,282.02
2014-12-31 90,461.52 173,224.70 13,601.23
2014-09-30 80,541.85 154,701.11 9,380.94
2014-06-30 77,456.76 152,060.08 11,990.23
2014-03-31 79,179.77 153,727.11 9,233.21
2013-12-31 74,044.62 155,799.90 9,448.95
2013-09-30 72,231.13 130,646.04 10,387.17
2013-06-30 67,945.99 162,115.37 15,735.88
2013-03-31 68,270.36 117,639.47 11,113.84
2012-12-31 64,918.24 167,398.05 10,732.40
2012-09-30 62,780.90 133,606.46 12,246.89
  • Huaneng Power International's level of debt (196.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (194.2% vs 196.9% today).
  • Debt is not well covered by operating cash flow (14.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Huaneng Power International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Huaneng Power International has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

902 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.45%
Current annual income from Huaneng Power International dividends. Estimated to be 7.51% next year.
If you bought HK$2,000 of Huaneng Power International shares you are expected to receive HK$49 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Huaneng Power International's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Huaneng Power International's dividend is below the markets top 25% of dividend payers in Hong Kong (5.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:902 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Hong Kong Renewable Energy Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 3.4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:902 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.56 1.00
2022-12-31 0.51 1.00
2021-12-31 0.34 10.00
2020-12-31 0.30 12.00
2019-12-31 0.24 10.00
SEHK:902 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-06-19 0.100 2.440
2018-03-13 0.100 2.331
2017-05-26 0.290 6.660
2016-05-23 0.470 10.682
2015-06-26 0.380 6.282
2014-05-12 0.380 5.086
2013-03-19 0.210 3.456
2012-06-11 0.050 0.989
2011-04-01 0.200 5.928
2010-07-02 0.210 5.500
2009-04-23 0.100 2.300
2009-04-01 0.100 2.167

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • No dividend growth in 10 years.
Current Payout to shareholders
What portion of Huaneng Power International's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Huaneng Power International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Huaneng Power International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Huaneng Power International has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

902 Management

 What is the CEO of Huaneng Power International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Keyu Zhao
COMPENSATION CN¥0
AGE 53
TENURE AS CEO 1 years
CEO Bio

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 experience in power industry. He served as Deputy General Manager of Huaneng Shandong Power Generation Co., Ltd. from February 2009 to November 2009 and was its Vice President. Prior to joining Huaneng Group, he served as Secretary to the Communist Party Committee of Shandong Luneng Development Group Co., Ltd. from July 2007 to December 2008, General Manager and Chairman of the board of Beijing Deyuan Investment Co., Ltd. from February 2006 to July 2007 and its President and HR Manager of Shandong Luneng Group Co., Ltd. from January 2005 to February 2006. He served as Deputy Secretary And Secretary to the Communist Party Committee of ULTRA-HV Transmission & Distribution Branch Company of Shandong Power Group Corporation from October 2001 to January 2005, Deputy Secretary to the Youth League Committee of Shandong Power Bureau from September 1997 to October 2001, secretary to the Youth League Committee, secretary to the Communist Party Branch and deputy chief engineer of Fangzi Power Plant from October 1990 to September 1997 and technician in Weifang Power Plant from July 1988 to October 1990. He served as Non Executive Director of Huaneng Renewables Corporation Limited since August 4, 2010 until August 12, 2014. Mr. Zhao graduated in 1988 from Shandong University of Technology with a bachelor’s degree in engineering majoring in Relay Protection and Remote Technology. He also graduated from Wuhan University with a master’s degree in software engineering in 2005. He is a senior political work specialist. He was Chief of the Planning Department of China Huaneng Group Co., and Director of the general office, Director of the general office of the Communist Party Branch and Secretary to the Communist Party Branch of China Huaneng Group Co., Ltd.

CEO Compensation
  • Insufficient data for Keyu to compare compensation growth.
  • Keyu's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Huaneng Power International management team in years:

1
Average Tenure
57.5
Average Age
  • The average tenure for the Huaneng Power International management team is less than 2 years, this suggests a new team.
Management Team

Yinbiao Shu

TITLE
Executive Chairman
AGE
61
TENURE
0.5 yrs

Keyu Zhao

TITLE
President
AGE
53
TENURE
1 yrs

Lixin Huang

TITLE
Chief Accountant
AGE
53
TENURE
3.5 yrs

Chaoquan Huang

TITLE
Secretary & Manager of Administration Department
AGE
54

Wang Yutian

TITLE
Executive officer
AGE
78

Lang Chuan Jin

TITLE
Executive officer
AGE
76
Board of Directors Tenure

Average tenure and age of the Huaneng Power International board of directors in years:

4.8
Average Tenure
54.5
Average Age
  • The tenure for the Huaneng Power International board of directors is about average.
Board of Directors

Yinbiao Shu

TITLE
Executive Chairman
AGE
61
TENURE
0.5 yrs

Xiangdong Ye

TITLE
Chairman of the Supervisory Committee
AGE
52
TENURE
4.8 yrs

Heng Yue

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥74K
AGE
45
TENURE
4.8 yrs

Jizhen Liu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥74K
AGE
68
TENURE
2.1 yrs

Xianzhi Zhang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥74K
AGE
62
TENURE
2.1 yrs

Xuan Mu

TITLE
Vice Chairman of the Supervisory Committee
COMPENSATION
CN¥65K
AGE
43
TENURE
4.8 yrs

Jian Huang

TITLE
Non-Executive Director
AGE
57
TENURE
10.9 yrs

Hongbo Guo

TITLE
Non-Executive Director
AGE
51
TENURE
7.4 yrs

Dabin Mi

TITLE
Non-Executive Director
AGE
51
TENURE
4.8 yrs

Mengzhou Xu

TITLE
Independent Non-executive Director
COMPENSATION
CN¥74K
AGE
69
TENURE
3.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
02. Jul 19 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 02. Jul 19 02. Jul 19 2,050,000 HK$4.58 HK$9,389,006
24. Apr 19 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 24. Apr 19 24. Apr 19 12,046,000 HK$4.80 HK$57,820,800
23. Apr 19 Buy Shanghai Chongyang Investment Management Co., Ltd. Company 23. Apr 19 23. Apr 19 16,804,000 HK$4.80 HK$80,659,178
11. Apr 19 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 11. Apr 19 11. Apr 19 5,000,000 HK$4.73 HK$23,644,987
08. Apr 19 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 08. Apr 19 08. Apr 19 10,000,000 HK$4.72 HK$47,199,976
03. Apr 19 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 03. Apr 19 03. Apr 19 27,978,000 HK$4.65 HK$130,097,670
21. Mar 19 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 21. Mar 19 21. Mar 19 27,000,000 HK$4.66 HK$125,847,096
20. Mar 19 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 20. Mar 19 20. Mar 19 22,638,000 HK$4.55 HK$103,002,891
20. Mar 19 Buy Shanghai Chongyang Investment Management Co., Ltd. Company 20. Mar 19 20. Mar 19 5,800,000 HK$4.55 HK$26,389,998
19. Mar 19 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 19. Mar 19 19. Mar 19 9,362,000 HK$4.72 HK$44,188,605
18. Feb 19 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 18. Feb 19 18. Feb 19 15,000,000 HK$5.00 HK$75,045,022
24. Jan 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 21. Jan 19 21. Jan 19 13,872,000 HK$4.89 HK$67,834,049
24. Jan 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 21. Jan 19 21. Jan 19 -6,531,798 HK$4.89 HK$-31,940,477
24. Jan 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 21. Jan 19 21. Jan 19 -14,602,486 HK$4.89 HK$-71,406,123
23. Jan 19 Buy J.P. Morgan Asset Management, Inc. Company 18. Jan 19 18. Jan 19 8,911,838 HK$4.95 HK$44,147,460
05. Dec 18 Buy BlackRock, Inc. Company 30. Nov 18 30. Nov 18 9,992,000 HK$4.87 HK$48,702,000
02. Nov 18 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 02. Nov 18 02. Nov 18 17,000,000 HK$4.45 HK$75,650,044
26. Oct 18 Buy Shanghai Chongyang Investment Management Co., Ltd. Company 26. Oct 18 26. Oct 18 9,834,000 HK$4.07 HK$40,024,400
24. Oct 18 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 24. Oct 18 24. Oct 18 12,500,000 HK$4.16 HK$51,975,018
23. Oct 18 Buy BlackRock, Inc. Company 18. Oct 18 18. Oct 18 152,000 HK$4.68 HK$711,360
19. Oct 18 Buy Shanghai Chongyang Strategic Investment Co., Ltd Company 19. Oct 18 19. Oct 18 22,000,000 HK$4.51 HK$99,308,010
25. Jul 18 Sell J.P. Morgan Asset Management, Inc. Company 20. Jul 18 20. Jul 18 -34,924,437 HK$6.00 HK$-209,389,546
23. Jul 18 Buy J.P. Morgan Asset Management, Inc. Company 18. Jul 18 18. Jul 18 31,937,991 HK$5.67 HK$180,973,428
X
Management checks
We assess Huaneng Power International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Huaneng Power International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

902 News

Simply Wall St News

We Think Huaneng Power International (HKG:902) In Taking Some Risk With Its Debt

SEHK:902 Historical Debt, July 5th 2019 A Look At Huaneng Power International's Liabilities We can see from the most recent balance sheet that Huaneng Power International had liabilities of CN¥140.6b falling due within a year, and liabilities of CN¥153.9b due beyond that. … So we'd watch its balance sheet closely, without a doubt After all, Huaneng Power International would likely require a major re-capitalisation if it had to pay its creditors today. … Either way, since Huaneng Power International does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Is Huaneng Power International, Inc. (HKG:902) Trading At A 46% Discount?

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CN¥, Millions) CN¥2.89k CN¥8.17k CN¥19.79k CN¥32.88k CN¥19.92k CN¥13.19k CN¥10.15k CN¥8.58k CN¥7.70k CN¥7.19k Growth Rate Estimate Source Analyst x1 Analyst x3 Analyst x4 Analyst x1 Analyst x1 Est @ -33.78% Est @ -23.04% Est @ -15.53% Est @ -10.27% Est @ -6.59% Present Value (CN¥, Millions) Discounted @ 9.01% CN¥2.65k CN¥6.88k CN¥15.28k CN¥23.29k CN¥12.94k CN¥7.86k CN¥5.55k CN¥4.30k CN¥3.54k CN¥3.03k Present Value of 10-year Cash Flow (PVCF)= CN¥85.33b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … SEHK:902 Intrinsic value, June 4th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Is Huaneng Power International, Inc. (HKG:902) Investing Your Capital Efficiently?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Did You Manage To Avoid Huaneng Power International's (HKG:902) 36% Share Price Drop?

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the five years over which the share price declined, Huaneng Power International's earnings per share (EPS) dropped by 41% each year. … This fall in the EPS is worse than the 8.5% compound annual share price fall.

Simply Wall St -

Can We See Significant Institutional Ownership On The Huaneng Power International, Inc. (HKG:902) Share Register?

A look at the shareholders of Huaneng Power International, Inc. … With a market capitalization of HK$111b, Huaneng Power International is rather large. … institutional investors have bought into the company.

Simply Wall St -

Why We’re Not Impressed By Huaneng Power International, Inc.’s (HKG:902) 5.4% ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … The formula for calculating the return on capital employed is:

Simply Wall St -

Should Huaneng Power International Inc's (HKG:902) Recent Earnings Worry You?

Examining how Huaneng Power International Inc (HKG:902) is performing as a company requires looking at more than just a years' earnings. … Below, I will run you through a simple sense check to build perspective on how Huaneng Power International is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its renewable energy industry peers. … See our latest analysis for Huaneng Power International?

Simply Wall St -

What You Must Know About Huaneng Power International Inc's (HKG:902) Return on Equity

and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Huaneng Power International Inc (HKG:902) performed in line with its independent power producers and energy traders industry on the basis of its ROE – producing a return of 4.15% relative to the peer average of 6.87% over the past 12 months. … Check out our latest analysis for Huaneng Power International

Simply Wall St -

What Do Huaneng Power International Inc (HKG:902) Insiders Know That You Don't?

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 and Singapore. … It is widely considered that insider buying stock in their own companies is potentially a bullish signal … The MIT Press (1998) published an article showing that stocks following insider buying outperformed the market by 4.5%

Simply Wall St -

What Does Huaneng Power International Inc's (HKG:902) Share Price Indicate?

Today we're going to take a look at the well-established Huaneng Power International Inc (HKG:902). … A question to answer is whether Huaneng Power International's current trading price of HK$5.29 reflective of the actual value of the? … Let’s take a look at Huaneng Power International’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

902 Company Info

Description

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.

Details
Name: Huaneng Power International, Inc.
902
Exchange: SEHK
Founded: 1994
HK$100,483,785,780
15,698,093,359
Website: http://www.hpi.com.cn
Address: Huaneng Power International, Inc.
Huaneng Building,
6 Fuxingmennei Street,
Beijing,
100031,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 902 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong Ltd. HK HKD 22. Jan 1998
OTCPK HUNG.F Foreign Shares-Foreign Listed Pink Sheets LLC US USD 22. Jan 1998
DB HUP1 Foreign Shares-Foreign Listed Deutsche Boerse AG DE EUR 22. Jan 1998
SHSC 902 Foreign Shares-Foreign Listed Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 22. Jan 1998
SZSC 902 Foreign Shares-Foreign Listed The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 22. Jan 1998
NYSE HNP ADR EACH REP 40 'H' SHS CNY1 New York Stock Exchange US USD 06. Oct 1994
SHSE 600011 Domestic Shares Shanghai Stock Exchange CN CNY 06. Dec 2001
DB HUP ADR EACH REP 40 'H' SHS CNY1 Deutsche Boerse AG DE EUR 06. Oct 1994
XSSC 600011 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 06. Dec 2001
SGX K3FD ADR EACH REP 40 'H' SHS CNY1 Singapore Exchange SG USD 06. Oct 1994
Number of employees
Current staff
Staff numbers
53,962
Huaneng Power International employees.
Industry
Independent Power Producers and Energy Traders
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 12:41
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/14
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.