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CGN Power Co Ltd Shs -H- Unitary 144A/Reg S 01816

Morningstar Rating
HKD 3.34 −0.08 (2.34%)
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Company Report

Chinese Power Utilities: Strong Performance on Improving Sentiment; Select Opportunities Remain

The year-to-date share price performance of China utilities under our coverage have generally staged a strong recovery since May, given improving sentiment in the Hong Kong equity market and their cheap valuations. In addition, the market is expecting more positive policy measures from the upcoming third plenary session in July. We have seen the National Energy Administration calling for increased investment in the national grid recently to avoid curtailment risk on the back of the significant rise in renewable energy capacity. While we are positive about this in the longer term, we caution that the concerns about slow subsidy settlements and falling tariffs will remain in the near term.

Price vs Fair Value

01816 is trading at a 268% premium.
Price
HKD 3.34
Fair Value
HKD 8.57
Uncertainty
Medium
1-Star Price
HKD 5.29
5-Star Price
HKD 9.57
Economic Moat
Nrdv
Capital Allocation
Mskchdf

Bulls Say, Bears Say

Bulls

China’s commitment to reduce carbon emissions will continue to favor development of nuclear power.

Bears

The lack of public trust in nuclear power due to concerns over radiation may slow the development of nuclear power.

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Trading Information

Previous Close Price
HKD 3.42
Day Range
HKD 3.343.44
52-Week Range
HKD 1.813.50
Bid/Ask
HKD 3.34 / HKD 3.36
Market Cap
HKD 168.67 Bil
Volume/Avg
92.9 Mil / 84.8 Mil

Key Statistics

Price/Earnings (Normalized)
14.37
Price/Sales
1.85
Dividend Yield (Trailing)
3.09%
Dividend Yield (Forward)
3.09%
Total Yield
3.09%

Company Profile

CGN Power is a major nuclear power producer in China. It operates 27 nuclear power generating units (total installed capacity of 30.6 gigawatts), with 14 units in Guangdong and the rest in Guangxi, Fujian, and Liaoning provinces as of end-2023. CGN is adding capacity of 8.4 gigawatts into its operations over the next five years. State-owned China General Nuclear Power, controls about 58.9% of CGN Power.
Sector
Utilities
Industry
Utilities - Independent Power Producers
Stock Style Box
Large Value
Total Number of Employees
19,038

Competitors

Valuation

Metric
01816
01798
00836
Price/Earnings (Normalized)
14.375.798.76
Price/Book Value
1.310.761.36
Price/Sales
1.851.051.11
Price/Cash Flow
1.604.26
Price/Earnings
01816
01798
00836

Financial Strength

Metric
01816
01798
00836
Quick Ratio
0.421.170.51
Current Ratio
0.941.180.59
Interest Coverage
4.733.094.69
Quick Ratio
01816
01798
00836

Profitability

Metric
01816
01798
00836
Return on Assets (Normalized)
4.17%3.32%4.37%
Return on Equity (Normalized)
15.31%19.38%16.01%
Return on Invested Capital (Normalized)
5.97%5.21%6.39%
Return on Assets
01816
01798
00836
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Utilities - Independent Power Producers Industry Comparables

1-Day Chart
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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NRG Energy Inc
NRG
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China Resources Power Holdings Co Ltd ADR
CRPJY
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Power Assets Holdings Ltd ADR
HGKGY
Wyk$11.3 Bil
Power Assets Holdings Ltd
HGKGF
Qml$11.3 Bil
Centrica PLC
CPYYF
DclmmyzNqlh$9.1 Bil
Centrica PLC ADR
CPYYY
YcdnpdvTjn$9.1 Bil
Datang International Power Generation Co Ltd Class H
DIPGF
Lzczl$6.4 Bil

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