China Resources Power Holdings Co Ltd
00836: XHKG (HKG)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| HKD 66.00 | Vcn | Yzlcttt |
Downgrade Moat Trend Rating to Negative, Amid Worsening Supply and Demand Dynamics for the Sector
Business Strategy and Outlook
China Resources Power is one of China's leading independent power producers. It has high-quality power assets and a strong management team, and it has delivered sustainable returns compared with industry peers. The company owns and operates power plants with total attributable capacity of 40,392 megawatts at the end of 2019, with 77% of its capacity running on thermal coal. Given its reliance on coal-fired generation, CRP's profitability is subject to underlying coal price swings, meaning there is considerable volatility in margins.