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902

Huaneng Power InternationalSEHK:902 Stock Report

Market Cap

HK$109.3b

7D

-6.4%

1Y

20.5%

Updated

26 Oct, 2021

Data

Company Financials +
902 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends2/6

902 Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Huaneng Power International
Historical stock prices
Current Share PriceHK$3.65
52 Week HighHK$2.44
52 Week LowHK$4.91
Beta0.53
1 Month Change-9.88%
3 Month Change39.31%
1 Year Change20.46%
3 Year Change-16.48%
5 Year Change-23.16%
Change since IPO65.91%

Recent News & Updates

Sep 09
The Returns On Capital At Huaneng Power International (HKG:902) Don't Inspire Confidence

The Returns On Capital At Huaneng Power International (HKG:902) Don't Inspire Confidence

If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...

Aug 17
Does Huaneng Power International (HKG:902) Have A Healthy Balance Sheet?

Does Huaneng Power International (HKG:902) Have A Healthy Balance Sheet?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

902HK Renewable EnergyHK Market
7D-6.4%0.7%0.4%
1Y20.5%75.1%6.7%

Return vs Industry: 902 underperformed the Hong Kong Renewable Energy industry which returned 75.1% over the past year.

Return vs Market: 902 exceeded the Hong Kong Market which returned 6.7% over the past year.

Price Volatility

Is 902's price volatile compared to industry and market?
902 volatility
902 Beta0.53
Industry Beta0.61
Market Beta1

Stable Share Price: 902 is more volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: 902's weekly volatility (11%) has been stable over the past year, but is still higher than 75% of Hong Kong stocks.

About the Company

FoundedEmployeesCEOWebsite
199457,874Ping Zhaohttps://www.hpi.com.cn

Huaneng Power International, Inc., together with its subsidiaries, generates and sells electricity and heat to the regional or provincial grid companies in the People’s Republic of China and internationally. 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 gas turbine, hydro, wind, photovoltaic, biomass, coal, solar, and oil resources.

Huaneng Power International Fundamentals Summary

How do Huaneng Power International's earnings and revenue compare to its market cap?
902 fundamental statistics
Market CapCN¥89.76b
Earnings (TTM)CN¥1.02b
Revenue (TTM)CN¥185.41b

46.3x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
902 income statement (TTM)
RevenueCN¥185.41b
Cost of RevenueCN¥158.83b
Gross ProfitCN¥26.57b
ExpensesCN¥25.56b
EarningsCN¥1.02b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 27, 2021

Earnings per share (EPS)0.065
Gross Margin14.33%
Net Profit Margin0.55%
Debt/Equity Ratio167.7%

How did 902 perform over the long term?

See historical performance and comparison

Dividends

6.0%

Current Dividend Yield

278%

Payout Ratio

Valuation

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

46.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 902 (HK$3.65) is trading above our estimate of fair value (HK$1.25)

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 (46.3x) compared to the Hong Kong Renewable Energy industry average (9.5x).

PE vs Market: 902 is poor value based on its PE Ratio (46.3x) compared to the Hong Kong market (9.6x).


Price to Earnings Growth Ratio

PEG Ratio: 902 is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: 902 is good value based on its PB Ratio (0.4x) compared to the HK Renewable Energy industry average (0.8x).


Future Growth

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

24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 902's forecast earnings growth (24.1% per year) is above the savings rate (1.5%).

Earnings vs Market: 902's earnings (24.1% per year) are forecast to grow faster than the Hong Kong market (17.6% per year).

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

Revenue vs Market: 902's revenue (5.1% per year) is forecast to grow slower than the Hong Kong market (12.4% per year).

High Growth Revenue: 902's revenue (5.1% 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 (6.3%).


Past Performance

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

-37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 902 has a large one-off loss of CN¥5.7B impacting its June 30 2021 financial results.

Growing Profit Margin: 902's current net profit margins (0.5%) are lower than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: 902's earnings have declined by 37.5% 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 (-50.5%) over the past year, making it difficult to compare to the Renewable Energy industry average (23.1%).


Return on Equity

High ROE: 902's Return on Equity (2.6%) is considered low.


Financial Health

How is Huaneng Power International's financial position?


Financial Position Analysis

Short Term Liabilities: 902's short term assets (CN¥71.8B) do not cover its short term liabilities (CN¥144.0B).

Long Term Liabilities: 902's short term assets (CN¥71.8B) do not cover its long term liabilities (CN¥161.0B).


Debt to Equity History and Analysis

Debt Level: 902's debt to equity ratio (167.7%) is considered high.

Reducing Debt: 902's debt to equity ratio has reduced from 169.7% to 167.7% over the past 5 years.

Debt Coverage: 902's debt is not well covered by operating cash flow (18.9%).

Interest Coverage: 902's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Dividend

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

6.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 902's dividend (6%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.24%).

High Dividend: 902's dividend (6%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.8%).


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: With its high payout ratio (278.2%), 902's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 902's dividends in 3 years are forecast to be covered by earnings (78% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Ping Zhao (59 yo)

1.58yrs

Tenure

CN¥1,124,000

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...


CEO Compensation Analysis

Compensation vs Market: Ping's total compensation ($USD176.01K) is below average for companies of similar size in the Hong Kong market ($USD1.11M).

Compensation vs Earnings: Ping's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: 902's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Members

Experienced Board: 902's board of directors are considered experienced (4.3 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 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$109.266b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:09
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.