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Huadian Power International Corp Class H (HK:1071)
:1071
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Huadian Power International (1071) AI Stock Analysis

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HK:1071

Huadian Power International

(OTC:1071)

Rating:65Neutral
Price Target:
HK$4.50
▲(6.89%Upside)
Huadian Power International's stock score reflects a balanced view of its financial strengths and valuation metrics against technical challenges. The company's sound profitability and potential undervaluation are significant positives, while high leverage and cash flow concerns pose risks. Technical indicators suggest caution, contributing to a moderate stock score.

Huadian Power International (1071) vs. iShares MSCI Hong Kong ETF (EWH)

Huadian Power International Business Overview & Revenue Model

Company DescriptionHuadian Power International Corporation Limited (1071) is a leading Chinese power generation company, primarily engaged in the development, construction, and operation of power plants. The company operates in the energy sector and focuses on generating and supplying electricity through a diverse portfolio that includes coal-fired, gas-fired, and renewable energy power stations. Huadian Power International is committed to providing stable and reliable electricity to meet the growing energy demands in China.
How the Company Makes MoneyHuadian Power International generates revenue primarily through the production and sale of electricity. The company's key revenue streams include the sale of electricity to grid operators and direct customers. It operates a wide range of power plants, with a significant portion of its revenue derived from coal-fired power generation, which remains a dominant energy source in China. Additionally, the company is expanding its portfolio in renewable energy, including wind and solar power, to align with national clean energy goals. Significant partnerships with local governments and energy companies support its operations and expansion projects, contributing to its overall earnings.

Huadian Power International Financial Statement Overview

Summary
The company's financial performance is mixed, with improved profitability and stable returns on equity. However, high leverage and cash flow challenges pose risks. Revenue fluctuations and a declining EBITDA margin indicate potential cost pressures, but the company remains operationally efficient.
Income Statement
72
Positive
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
68
Positive
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
65
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue112.99B117.18B107.06B104.42B90.74B
Gross Profit9.92B7.53B459.56M-6.43B14.67B
EBITDA22.75B19.82B12.70B7.00B23.97B
Net Income5.70B4.52B-638.11M-6.75B4.44B
Balance Sheet
Total Assets223.88B223.04B223.26B218.86B234.61B
Cash, Cash Equivalents and Short-Term Investments5.85B5.63B6.28B6.09B6.68B
Total Debt95.72B117.59B125.14B116.70B108.29B
Total Liabilities137.80B139.66B152.81B145.29B141.65B
Stockholders Equity67.33B69.76B59.51B61.83B72.09B
Cash Flow
Free Cash Flow7.27B2.76B-768.58M-19.65B6.59B
Operating Cash Flow16.34B13.25B9.65B-6.35B25.25B
Investing Cash Flow-7.71B-9.29B-8.51B-6.40B-18.05B
Financing Cash Flow-8.17B-4.70B-1.18B11.92B-7.16B

Huadian Power International Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.21
Price Trends
50DMA
4.36
Negative
100DMA
4.30
Negative
200DMA
4.03
Positive
Market Momentum
MACD
-0.03
Positive
RSI
43.14
Neutral
STOCH
28.65
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1071, the sentiment is Negative. The current price of 4.21 is below the 20-day moving average (MA) of 4.27, below the 50-day MA of 4.36, and above the 200-day MA of 4.03, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 28.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1071.

Huadian Power International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$102.61B6.6815.59%5.78%1.89%29.67%
70
Outperform
$38.84B10.658.59%7.33%20.21%23.24%
68
Neutral
HK$59.33B11.2117.92%1.70%-1.05%
68
Neutral
$108.34B10.287.63%1.20%-5.49%28.25%
67
Neutral
$117.59B9.677.93%0.51%-7.20%-9.40%
65
Neutral
HK$60.71B8.4313.59%0.77%-5.59%25.60%
63
Neutral
HK$30.51B8.825.37%4.23%-3.09%4.51%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1071
Huadian Power International
4.20
0.27
6.76%
HK:0836
China Resources Power Holdings Co
19.82
-0.94
-4.51%
HK:0991
Datang International Power Generation Co
1.99
0.46
30.41%
HK:0916
China Longyuan Power Group
7.29
0.17
2.39%
HK:0902
Huaneng Power International
4.97
0.32
6.79%
HK:2380
China Power International Development
3.14
-0.37
-10.64%

Huadian Power International Corporate Events

Huadian Power International Announces Leadership Changes
Jul 17, 2025

Huadian Power International Corporation Limited has announced the resignation of Mr. Chen Bin from his roles as Vice Chairman, Executive Director, and General Manager due to personal work adjustments. The company has expressed gratitude for Mr. Chen’s contributions and confirmed there are no disagreements or issues related to his departure. Subsequently, the company has proposed the election of Mr. Li Quancheng as an Executive Director and appointed him as the new General Manager. Mr. Li brings over 30 years of experience in financial risk control and capital operations, and his appointment is expected to support the company’s strategic goals.

The most recent analyst rating on (HK:1071) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Huadian Power International stock, see the HK:1071 Stock Forecast page.

Huadian Power Completes Major Share Issuance to China Huadian
Jun 24, 2025

Huadian Power International Corporation Limited has completed the issuance of 678,863,257 Consideration Shares to China Huadian as part of an asset purchase agreement. This transaction, confirmed by the China Securities Depository and Clearing Corporation Limited, increases China Huadian’s shareholding to approximately 47.80% of the total issued share capital, potentially strengthening its influence within the company and the broader energy market.

Huadian Power International Receives Approval for Infrastructure REIT Spin-off
Jun 19, 2025

Huadian Power International has received approval from the China Securities Regulatory Commission for the registration of its Infrastructure Real Estate Investment Trust (REIT) and has been granted a waiver by the Stock Exchange to proceed with the proposed spin-off and separate listing of the REIT on the Shanghai Stock Exchange. This strategic move is expected to enhance the company’s operational focus on infrastructure assets, although not all existing shareholders will be entitled to hold units in the new listing due to regulatory constraints.

Huadian Power International Concludes AGM, Approves Resolutions and Dividend
Jun 17, 2025

Huadian Power International Corporation Limited announced the successful conclusion of its Annual General Meeting (AGM) held on June 17, 2025, where all proposed resolutions were passed. The AGM was conducted in compliance with relevant laws and regulations, and it included both physical and online voting, with significant shareholder participation. Additionally, the company declared the distribution of a final dividend, signaling a positive financial outlook and commitment to shareholder returns.

Huadian Power International Announces Final Dividend for 2024
Jun 17, 2025

Huadian Power International Corporation Limited has announced a final cash dividend of RMB 0.13 per share for the financial year ending December 31, 2024. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09341, with a payment date set for July 30, 2025. The announcement includes updates on the dividend amount, exchange rate, payment date, and withholding tax information. This decision reflects the company’s commitment to returning value to its shareholders and may influence its market positioning by potentially attracting more investors.

Huadian Power Enters Fuel Purchase Agreement with PetroChina
May 30, 2025

Huadian Power International has entered into a Fuel Purchase Framework Agreement with PetroChina, effective from May 30, 2025, to December 31, 2027. This agreement follows the company’s acquisition of an 80% equity interest in Jiangsu Huadian, making it a subsidiary. PetroChina, holding a 20% stake in Jiangsu Huadian, is a connected person under Hong Kong Listing Rules. The agreement allows Huadian to purchase fuel products, including natural gas, from PetroChina at market-based prices, ensuring terms are no less favorable than those offered to independent third parties. This strategic move is expected to enhance Huadian’s operational efficiency and strengthen its market position in the energy sector.

Huadian Power International Announces Key Resolutions for Upcoming AGM
May 16, 2025

Huadian Power International Corporation Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 17, 2025, where shareholders will consider several key resolutions. These include the approval of financial reports, profit distribution, and the issuance of financial instruments, as well as amendments to the Articles of Association. The AGM will also address the adoption of China Accounting Standards and the appointment of auditors for the upcoming financial year, reflecting the company’s strategic focus on financial transparency and operational efficiency.

Huadian Power Receives CSRC Approval for Asset Acquisition and Fundraising
May 16, 2025

Huadian Power International Corporation Limited announced that it has received approval from the China Securities Regulatory Commission (CSRC) for the registration of its acquisition of assets by issuing 678,863,257 A Shares to China Huadian and raising ancillary funds up to RMB3,428.0 million. This approval marks a significant step in the company’s strategic transaction, allowing it to proceed with the acquisition and fund-raising activities, which are expected to enhance its operational capabilities and market position.

Huadian Power Announces Final Dividend for 2024
May 16, 2025

Huadian Power International Corporation Limited has announced a final cash dividend of RMB 0.13 per share for the financial year ending December 31, 2024. The dividend will be paid on August 15, 2025, following shareholders’ approval on June 17, 2025. The announcement includes details on the ex-dividend date, record date, and withholding tax applicable to different shareholder categories. This dividend declaration reflects the company’s commitment to returning value to its shareholders and may impact its financial positioning and investor relations positively.

Huadian Power International Sees Profit Increase Despite Revenue Drop in Q1 2025
Apr 29, 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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025