Huaneng Power International, Inc.

SEHK:902 Stock Report

Market Cap: HK$129.2b

Huaneng Power International Valuation

Is 902 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 902 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 902 (HK$4.53) is trading below our estimate of fair value (HK$16.36)

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


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 902?

Other financial metrics that can be useful for relative valuation.

902 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/Revenue1.7x
Enterprise Value/EBITDA9.6x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does 902's PE Ratio compare to its peers?

The above table shows the PE ratio for 902 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.9x
836 China Resources Power Holdings
7.8x13.7%HK$85.9b
1816 CGN Power
9.8x5.2%HK$189.1b
1071 Huadian Power International
29x25.2%HK$67.4b
991 Datang International Power Generation
17xn/aHK$45.6b
902 Huaneng Power International
11.9x30.4%HK$129.2b

Price-To-Earnings vs Peers: 902 is good value based on its Price-To-Earnings Ratio (11.9x) compared to the peer average (15.9x).


Price to Earnings Ratio vs Industry

How does 902's PE Ratio compare vs other companies in the HK Renewable Energy Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 902 is expensive based on its Price-To-Earnings Ratio (11.9x) compared to the Hong Kong Renewable Energy industry average (8x).


Price to Earnings Ratio vs Fair Ratio

What is 902'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.

902 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.9x
Fair PE Ratio13.2x

Price-To-Earnings vs Fair Ratio: 902 is good value based on its Price-To-Earnings Ratio (11.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 902 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$4.53
HK$5.26
+16.2%
14.5%HK$6.15HK$3.40n/a14
Mar ’25HK$4.34
HK$5.07
+16.8%
20.2%HK$6.29HK$2.75n/a13
Feb ’25HK$4.12
HK$5.00
+21.4%
21.2%HK$6.32HK$2.76n/a13
Jan ’25HK$4.14
HK$4.92
+18.9%
22.0%HK$6.34HK$2.78n/a13
Dec ’24HK$4.03
HK$4.81
+19.4%
23.1%HK$6.28HK$2.75n/a12
Nov ’24HK$3.69
HK$4.99
+35.3%
24.8%HK$7.07HK$2.70n/a12
Oct ’24HK$3.80
HK$5.18
+36.3%
21.9%HK$7.08HK$3.40n/a12
Sep ’24HK$3.92
HK$4.91
+25.2%
25.1%HK$7.12HK$2.67n/a13
Aug ’24HK$4.40
HK$4.97
+13.0%
25.0%HK$7.18HK$2.69n/a13
Jul ’24HK$4.90
HK$4.72
-3.7%
23.5%HK$6.18HK$2.53n/a13
Jun ’24HK$4.96
HK$4.46
-10.2%
26.0%HK$6.33HK$2.60n/a13
May ’24HK$4.88
HK$4.34
-11.1%
24.3%HK$6.16HK$2.66n/a12
Apr ’24HK$4.12
HK$4.19
+1.7%
22.0%HK$5.90HK$2.67n/a13
Mar ’24HK$3.91
HK$3.95
+1.1%
19.1%HK$5.29HK$2.70HK$4.3412
Feb ’24HK$3.86
HK$4.02
+4.2%
19.6%HK$5.41HK$2.87HK$4.1211
Jan ’24HK$3.69
HK$3.89
+5.4%
20.2%HK$5.20HK$2.76HK$4.1411
Dec ’23HK$3.49
HK$3.83
+9.7%
20.3%HK$5.12HK$2.72HK$4.0311
Nov ’23HK$2.79
HK$3.64
+30.5%
22.0%HK$5.02HK$2.66HK$3.6910
Oct ’23HK$3.42
HK$3.91
+14.4%
19.4%HK$5.00HK$2.62HK$3.8010
Sep ’23HK$4.02
HK$3.90
-3.1%
18.5%HK$4.85HK$2.66HK$3.9210
Aug ’23HK$3.60
HK$4.08
+13.3%
15.6%HK$4.90HK$3.01HK$4.409
Jul ’23HK$3.91
HK$3.73
-4.6%
20.9%HK$4.89HK$2.64HK$4.9011
Jun ’23HK$3.94
HK$3.68
-6.6%
23.4%HK$4.93HK$2.53HK$4.9611
May ’23HK$3.99
HK$3.71
-7.0%
23.6%HK$5.00HK$2.56HK$4.8811
Apr ’23HK$3.38
HK$3.92
+16.0%
26.3%HK$6.00HK$2.63HK$4.1212
Mar ’23HK$4.57
HK$4.02
-12.1%
29.8%HK$6.03HK$2.30HK$3.9111

Analyst Forecast: Target price is less than 20% higher than the current share price.


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