Huadian Power International (1071) AI Stock Analysis

• Market Cap: HK$61.39B
• Dividend Yield: 5.58%
• Average Volume (3M): 8.90M
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.41
• Revenue Growth: -5.59%
• EPS Growth: 25.60%
• Country: HK
• Employees: 25,093
• Sector: Utilities
• Sector Strength: 90
• Industry: Regulated Electric
• EPS (TTM): 0.50
• Shares Outstanding: 1,717,233,600
• 10 Day Avg. Volume: 9,112,360
• 30 Day Avg. Volume: 8,896,231
• PEG Ratio: 0.35
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Huadian Power International's overall stock score reflects a balanced view of its performance. The company shows strengths in profitability and operational efficiency. Technical indicators are positive, supporting a bullish outlook. The stock's valuation is attractive, offering a reasonable P/E ratio and a high dividend yield. However, high leverage and cash flow challenges are major concerns that moderate the overall score.

Huadian Power International Business Overview & Revenue Model

Company Description

Huadian Power International Corporation Limited, together with its subsidiaries, engages in the generation and sale of electricity and heat to power grid companies in the People's Republic of China. The company is involved in the construction and operation of power plants, including coal- or gas-fired generating units and various renewable energy projects. It also engages in the mining, production, and sale of coal. As of December 31, 2021, it had 42 controlled power plants with a total installed capacity of approximately 53,355.55 MW, including a total of approximately 42,360 MW through coal-fired power generating units and 8,589.05 MW through gas-fired generating units; and approximately 2,403 MW through hydropower generating units. The company was incorporated in 1994 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Huadian Power International makes money primarily through the generation and sale of electricity. The company's revenue model is centered around its extensive portfolio of power generation facilities, which includes coal-fired plants, hydropower stations, wind farms, and solar power installations. By producing electricity from these diverse energy sources, the company sells power to the national grid and directly to large-scale consumers under long-term power purchase agreements. Key revenue streams include electricity sales, government subsidies for renewable energy generation, and ancillary services related to grid stability and energy efficiency. The company's earnings are also influenced by partnerships with regional and national energy authorities, enabling it to leverage government policies supporting clean energy and infrastructure development.

Huadian Power International Financial Statement Overview

Summary

Huadian Power International demonstrates a mixed financial performance. The company has recovered from past losses, showing improvements in profitability and stable returns on equity. However, revenue fluctuations and high leverage present risks, and cash flow challenges need attention. Despite these concerns, the company remains operationally efficient with strengths in profitability and equity returns.

Income Statement

The income statement shows a recovery in net income from losses in previous years, with a positive net profit margin of 5.31% TTM. The gross profit margin stands at 9.37% TTM, indicating modest profitability. Revenue has been fluctuating, with a decline in the most recent period compared to 2024. The EBIT margin is strong at 7.66% TTM, suggesting efficient core operations. However, the EBITDA margin has declined, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a relatively high debt-to-equity ratio of 1.38 TTM, indicating significant leverage. The return on equity is healthy at 8.70% TTM, showing effective use of equity to generate profits. The equity ratio is 30.15% TTM, which is stable but indicates reliance on debt financing. Overall, the balance sheet is stable but carries some risk due to high leverage.

Cash Flow

Cash flow analysis reveals challenges, with a significant decline in operating cash flow compared to the previous year. The free cash flow growth rate is negative, but the company maintains a positive free cash flow. The operating cash flow to net income ratio is below optimal levels, suggesting potential issues in converting income to cash. Despite these challenges, the company has managed its financing and investing activities to maintain liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
112.99B	117.18B	107.06B	104.42B	90.74B
	Gross Profit
9.92B	7.53B	459.56M	-6.43B	14.67B
	EBIT
8.33B	5.70B	3.90B	-1.03B	13.01B
	EBITDA
22.75B	19.82B	12.70B	7.00B	23.97B
	Net Income Common Stockholders
5.70B	4.52B	-638.11M	-6.75B	4.44B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.85B	5.63B	6.28B	6.09B	6.68B
	Total Assets
223.88B	223.04B	223.26B	218.86B	234.61B
	Total Debt
95.72B	117.59B	125.14B	116.70B	108.29B
	Net Debt
89.87B	112.14B	118.86B	110.61B	101.61B
	Total Liabilities
137.80B	139.66B	152.81B	145.29B	141.65B
	Stockholders Equity
67.33B	69.76B	59.51B	61.83B	72.09B
Cash Flow		Free Cash Flow
7.27B	2.76B	-768.58M	-19.65B	6.59B
	Operating Cash Flow
16.34B	13.25B	9.65B	-6.35B	25.25B
	Investing Cash Flow
-7.71B	-9.29B	-8.51B	-6.40B	-18.05B
	Financing Cash Flow
-8.17B	-4.70B	-1.18B	11.92B	-7.16B

Huadian Power International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1071, the sentiment is Positive. The current price of 4.52 is above the 20-day moving average (MA) of 4.36, above the 50-day MA of 4.34, and above the 200-day MA of 4.01, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 56.68 is Neutral, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1071.

Huadian Power International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1071	73 Outperform	HK$61.39B	9.08	13.59%	5.58%	-5.59%	25.60%
Sector *	63 Neutral	$8.48B	10.79	5.35%	4.36%	3.55%	-11.17%

Huadian Power International Corporate Events

Huadian Power International Sees Profit Increase Despite Revenue Drop in Q1 2025

Huadian Power International reported its unaudited financial results for the first quarter of 2025, showing a 14.14% decrease in operating income compared to the same period last year. Despite this, the company achieved a 3.66% increase in net profit attributable to shareholders, with a significant 107.47% rise in net cash flow from operating activities, indicating improved operational efficiency.

Huadian Power International Forms Strategic Joint Venture

Huadian Power International Corporation Limited announced the formal entry into an Investment Framework Agreement to form a Joint Venture Company with Shandong Luzhong Holding Group Co., Ltd and China Huadian Hong Kong Company Limited. This connected transaction has been approved by the company’s Board and independent directors, signifying a strategic move to enhance its operational capabilities and market presence.

Huadian Power International Reports Decline in Q1 2025 Power Generation

Huadian Power International reported a decrease in power generation and on-grid electricity sales for the first quarter of 2025, with figures dropping by approximately 8.51% and 8.50% respectively compared to the same period last year. This decline is attributed to a loose supply-demand balance in the region, increased new energy capacity, and reduced utilization of coal-fired units, particularly in Shandong province. The average on-grid electricity tariff also saw a slight decrease of 0.71%.

Huadian Power to Announce Q1 2025 Results

Huadian Power International Corporation Limited has announced that its board of directors will meet to consider and vote on the publication of the company’s unaudited first quarterly results for the period ending March 31, 2025. This announcement indicates the company’s ongoing efforts to maintain transparency and keep stakeholders informed about its financial performance.

Huadian Power Forms Joint Venture for Pumped Storage Project

Huadian Power International has announced the formation of a Joint Venture Company to manage the investment, construction, and operation of a Pumped Storage Project with a planned installed capacity of 1.8 million kilowatts. The project is in its early development stage, and the joint venture’s registered capital of RMB200 million will be used primarily for feasibility studies and obtaining necessary approvals, with no immediate requirement for further capital contribution from shareholders.

Huadian Power International Announces Final Dividend for 2024

Huadian Power International Corporation Limited announced a cash dividend of RMB 0.13 per share for the financial year ending December 31, 2024. The payment date for this dividend is set for August 29, 2025, with further details on the exchange rate, ex-dividend date, and record date yet to be announced. This announcement reflects the company’s ongoing commitment to returning value to its shareholders, potentially impacting investor perceptions and market positioning.

Huadian Power International Gains SSE Approval for Transaction and A Shares Issuance

Huadian Power International Corporation Limited announced that the Merger, Acquisition and Reorganisation Review Committee of the Shanghai Stock Exchange has approved its transaction and proposed issuance of A shares. This approval indicates compliance with reorganisation conditions and information disclosure requirements, although the transaction’s implementation is contingent upon further conditions, advising shareholders and potential investors to exercise caution.

Huadian Power International to Adopt China Accounting Standards

Huadian Power International announced its decision to adopt the China Accounting Standards for Business Enterprises (CASBE) for financial reporting, starting from the interim financial report for the period ending June 30, 2025. This move aims to enhance efficiency and reduce disclosure costs without materially impacting the company’s financial results or position. Additionally, the company proposes amendments to its Articles of Association to align with the new accounting standards, subject to shareholder approval at the 2024 annual general meeting.

Huadian Power Forms Joint Venture for Pumped Storage Project

Huadian Power International Corporation Limited has announced the formation of a joint venture company with Luzhong Holding and Huadian Hong Kong to develop a Pumped Storage Project. This joint venture will be a connected subsidiary, with Huadian Power holding a 70% stake, and its financial results will be consolidated into Huadian Power’s accounts. The transaction is classified as a connected transaction under Hong Kong Listing Rules, requiring reporting and announcement but exempt from independent shareholder approval.

Huadian Power International Declares Final Dividend for 2024

Huadian Power International Corporation Limited has announced a final cash dividend of RMB 0.13 per share for the financial year ended 31 December 2024. The payment date is set for 30 August 2025, with further details on currency conversion and tax implications to be announced. This dividend declaration reflects the company’s stable financial performance and commitment to providing returns to its shareholders.

Huadian Power International Reports 2024 Financial Results and Dividend Proposal

Huadian Power International reported a slight decrease in power generation and on-grid power sales for 2024, with a turnover decline of 3.42% compared to 2023. Despite these decreases, the company announced a profit of RMB5,670 million and proposed a final dividend of RMB0.13 per share, subject to shareholder approval. This announcement reflects the company’s stable financial performance and commitment to shareholder returns, despite challenges in the energy sector.

Huadian Power to Announce 2024 Financial Results

Huadian Power International Corporation Limited has announced that its board of directors will meet to consider and vote on the publication of the audited annual results for the financial year ending December 2024. This decision is scheduled for March 27, 2025, and is expected to provide insights into the company’s financial performance, potentially impacting its market positioning and stakeholder interests.

Huadian Power to Launch Infrastructure REIT on Shanghai Stock Exchange

Huadian Power International Corporation Limited has announced its plan to spin off and separately list a publicly traded real estate investment trust (REIT) for infrastructure assets on the Shanghai Stock Exchange. The company has submitted the necessary application materials to the China Securities Regulatory Commission and the Shanghai Stock Exchange. This strategic move involves utilizing the Huadian Hangzhou Natural Gas Heat and Power Co-Generation Project as the underlying infrastructure project for the REIT, aiming to enhance its market positioning and potentially attract new investors.