China Resources Power’s Gearing Continues to Increase; Shares Remain Attractive

China Resources Power, or CR Power, is one of China's leading independent power producers, with high efficiency power generation assets and an established operation track record. As of end-2023, the firm had a total attributable operational generation capacity of about 59.8 gigawatts, or GW. Thermal power plants accounted for 62.2% of its total capacity, with the remainder from wind, photovoltaic and hydro power. Given the significant proportion of thermal power plants, CR Power's profitability is subject to underlying coal price swings, thus increasing earnings volatility.