CGN Power Co Ltd Shs -H- Unitary 144A/Reg S
01816: XHKG (HKG)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| HKD 8.73 | Psxqr | Pcwnqfk |
CGN Power Earnings: Slight Miss in Otherwise Solid Power Generation Growth; Shares Undervalued
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We maintain our fair value estimate of HKD 2.24 for CGN Power, despite a slight miss in its third-quarter 2023 results. Our earnings forecasts are largely unchanged, and we think the shares are attractive currently, trading at around 0.7 times price/book with about 6% dividend yield for 2024. We estimate CGN’s net profit to grow at a five-year CAGR of 7.2% over our explicit forecast period, underpinned by its stable nuclear power operations.