SEHK:991

Stock Analysis Report

Datang International Power Generation

Executive Summary

Datang International Power Generation Co., Ltd., together with its subsidiaries, engages in power generation and power plant development in the People’s Republic of China.

Rewards

Trading at 90.8% below its fair value

Earnings are forecast to grow 32.93% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 8.11% is not well covered by earnings

Profit margins (1%) are lower than last year (1.9%)

Shareholders have been diluted in the past year



Snowflake Analysis

Good value with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 991 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

991

-0.6%

HK Renewable Energy

1.7%

HK Market


1 Year Return

-35.7%

991

-21.6%

HK Renewable Energy

-2.9%

HK Market

Return vs Industry: 991 underperformed the Hong Kong Renewable Energy industry which returned -21.6% over the past year.

Return vs Market: 991 underperformed the Hong Kong Market which returned -2.9% over the past year.


Shareholder returns

991IndustryMarket
7 Day0%-0.6%1.7%
30 Day-7.4%-6.4%-4.8%
90 Day-8.1%-1.5%3.4%
1 Year-31.8%-35.7%-18.8%-21.6%0.7%-2.9%
3 Year-32.4%-39.1%-21.8%-29.2%15.3%3.6%
5 Year-51.3%-61.7%-42.4%-51.5%15.9%-3.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Datang International Power Generation 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: 991 (HK$1.37) is trading below our estimate of fair value (HK$14.93)

Significantly Below Fair Value: 991 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 991 is poor value based on its PE Ratio (29.5x) compared to the Renewable Energy industry average (8.1x).

PE vs Market: 991 is poor value based on its PE Ratio (29.5x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 991 is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: 991 is good value based on its PB Ratio (0.4x) compared to the HK Renewable Energy industry average (0.5x).


Next Steps

Future Growth

How is Datang International Power Generation forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

32.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 991's forecast earnings growth (32.9% per year) is above the savings rate (1.6%).

Earnings vs Market: 991's earnings (32.9% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

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

Revenue vs Market: 991's revenue (1.2% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).

High Growth Revenue: 991's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 991's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Datang International Power Generation performed over the past 5 years?

-10.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 991 has high quality earnings.

Growing Profit Margin: 991's current net profit margins (1%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: 991's earnings have declined by -10.8% per year over the past 5 years.

Accelerating Growth: 991's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 991 had negative earnings growth (-45.1%) over the past year, making it difficult to compare to the Renewable Energy industry average (4.6%).


Return on Equity

High ROE: 991's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Datang International Power Generation's financial position?


Financial Position Analysis

Short Term Liabilities: 991's short term assets (CN¥35.2B) do not cover its short term liabilities (CN¥77.6B).

Long Term Liabilities: 991's short term assets (CN¥35.2B) do not cover its long term liabilities (CN¥124.0B).


Debt to Equity History and Analysis

Debt Level: 991's debt to equity ratio (198.7%) is considered high.

Reducing Debt: 991's debt to equity ratio has reduced from 268.2% to 198.7% over the past 5 years.

Debt Coverage: 991's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: 991's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: 991 has a high level of physical assets or inventory.

Debt Coverage by Assets: 991's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

8.11%

Current Dividend Yield


Dividend Yield vs Market

company8.1%marketbottom25%2.3%markettop25%6.3%industryaverage3.9%forecastin3Years6.9%

Current dividend yield vs market & industry

Notable Dividend: 991's dividend (8.11%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.27%).

High Dividend: 991's dividend (8.11%) is in the top 25% of dividend payers in the Hong Kong market (6.34%)


Stability and Growth of Payments

Stable Dividend: 991's dividend payments have been volatile in the past 10 years.

Growing Dividend: 991's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (239%), 991's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 991's dividends in 3 years are forecast to be well covered by earnings (45.4% payout ratio).


Next Steps

Management

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

0.5yrs

Average management tenure


CEO

Yongpan Liang (53yo)

0.5yrs

Tenure

0

Mr. Yongpan Liang serves as General Manager and Executive Director at Datang International Power Generation Co., Ltd. since August 30, 2019. Mr. Liang has been the Head of Safety and Production Department  ...


Leadership Team

NamePositionTenureCompensationOwnership
Yongpan Liang
GM & Executive Director0.5yrsno datano data
Xuejun Ying
Non-Executive Director4.3yrsCN¥847.00kno data
Xin Wang
Executive Director0yrsCN¥972.00kno data
Jinming Jiang
Joint Company Secretary1.5yrsno datano data
Hong Guo
Deputy General Manager0.5yrsCN¥435.00kno data
Fugui Bai
Deputy General Manager0.5yrsno datano data
Zheng Chang
Deputy General Manager0.2yrsno datano data
Mei Ko
Joint Company Secretary0.08yrsno datano data

0.5yrs

Average Tenure

54yo

Average Age

Experienced Management: 991's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yongpan Liang
GM & Executive Director0.5yrsno datano data
Xuejun Ying
Non-Executive Director4.3yrsCN¥847.00kno data
Xin Wang
Executive Director0yrsCN¥972.00kno data
Feihu Chen
Chairman0.9yrsno datano data
Huangsong Liu
Independent Non-Executive Director4.5yrsCN¥137.00kno data
Genfu Feng
Independent Non-Executive Director5.5yrsCN¥137.00kno data
Xiaoxu Zhang
Vice Chairman of the Supervisory Committee0yrsno datano data
Zhongwei Luo
Independent Non-Executive Director4.5yrsCN¥137.00kno data
Fuxiu Jiang
Independent Non-Executive Director4.5yrsCN¥137.00kno data
Sen Wang
Vice-Chairman0.9yrsno datano data

4.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 991's board of directors are considered experienced (4.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 42%.


Top Shareholders

Company Information

Datang International Power Generation Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Datang International Power Generation Co., Ltd.
  • Ticker: 991
  • Exchange: SEHK
  • Founded: 1994
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: HK$37.726b
  • Shares outstanding: 18.51b
  • Website: https://www.dtpower.com

Number of Employees


Location

  • Datang International Power Generation Co., Ltd.
  • No. 9, Guangningbo Street
  • Xicheng District
  • Beijing
  • 100033
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DIPG.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDMar 1997
991SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDMar 1997
DATLSE (London Stock Exchange)YesForeign Shares-Foreign ListedGBGBPMar 1997
BJIDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEURMar 1997
991SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMar 1997
991SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDMar 1997
DIPG.YOTCPK (Pink Sheets LLC)SPON ADR REP HUSUSDOct 2003
601991SHSE (Shanghai Stock Exchange)Domestic SharesCNCNYDec 2006
601991XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)Domestic SharesCNCNYDec 2006

Biography

Datang International Power Generation Co., Ltd., together with its subsidiaries, engages in power generation and power plant development in the People’s Republic of China. It operates through Power Generation, Coal, and Other segments. The company generates electricity through various sources, such as coal-fired, thermal, hydro, wind, nuclear, solar, and natural gas. As of December 31, 2018, it managed an installed capacity of approximately 62,853.30 MW. The company also engages in heat supply; the import of power related fuel; coal mining and trading; silicon and aluminum smelting; the production and sale of alumina; cargo shipping; the sale of coal ash and integrated application of solid wastes; the repair and testing of power equipment; and the provision of power related technical services. The company was formerly known as Beijing Datang Power Generation Co., Ltd. The company was founded in 1994 and is headquartered in Beijing, the People’s Republic of China. Datang International Power Generation Co., Ltd. is a subsidiary of China Datang Corporation Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 12:36
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.