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Huadian Power International Corp Ltd Class H (HK:1071)
:1071

Huadian Power International (1071) AI Stock Analysis

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HK:1071

Huadian Power International

(1071)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
HK$5.00
â–²(16.82% Upside)
The overall stock score is driven by strong technical indicators and attractive valuation metrics, suggesting potential undervaluation and a good income stream. However, financial performance is mixed, with concerns about high leverage and cash flow volatility. The absence of earnings call and corporate events data limits the analysis to these factors.
Positive Factors
Renewable Energy Investments
Investing in renewable energy aligns with government policies, potentially opening new revenue streams and enhancing long-term sustainability.
Stable Revenue Stream
Government-regulated pricing provides a predictable revenue stream, supporting financial stability and planning over the long term.
Operational Efficiency
Operational efficiency indicates effective management and resource utilization, crucial for maintaining profitability and competitiveness.
Negative Factors
High Leverage
High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.
Cash Flow Volatility
Volatile cash flow can hinder the company's ability to fund operations and investments, affecting long-term financial health.
Revenue Fluctuations
Fluctuating revenue can create uncertainty in financial planning and may indicate challenges in market demand or pricing power.

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

Huadian Power International Business Overview & Revenue Model

Company DescriptionHuadian 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 MoneyHuadian Power International generates revenue primarily through the sale of electricity produced by its power generation facilities. The company operates under government-regulated pricing mechanisms, which ensure a steady income stream from power sales. Additional revenue streams include capacity payments for maintaining readiness to supply electricity, and ancillary services such as grid stability support. The company benefits from strategic partnerships with local and national government entities, as well as collaborations with other energy companies to enhance its operational efficiencies and expand its energy portfolio. Furthermore, investments in renewable energy initiatives are aligned with national policies, potentially opening up new revenue opportunities through green energy credits and incentives.

Huadian Power International Financial Statement Overview

Summary
Huadian Power International shows a mixed financial performance. The company has recovered from past losses, with improved profitability and stable returns on equity. However, revenue fluctuations and high leverage pose risks. Cash flow challenges need attention, but the company remains operationally efficient. Overall, while there are strengths in profitability and equity returns, leverage and cash flow volatility are areas of concern.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue119.77B112.99B117.18B107.06B104.42B90.74B
Gross Profit11.77B9.92B7.53B459.56M-6.43B14.67B
EBITDA9.08B22.75B19.82B12.70B7.00B23.97B
Net Income6.38B5.70B4.52B-638.11M-6.75B4.44B
Balance Sheet
Total Assets260.00B223.88B223.04B223.26B218.86B234.61B
Cash, Cash Equivalents and Short-Term Investments6.79B5.85B5.63B6.28B6.09B6.68B
Total Debt110.47B95.72B117.59B125.14B116.70B108.29B
Total Liabilities163.00B137.80B139.66B152.81B145.29B141.65B
Stockholders Equity64.67B67.33B69.76B59.51B61.83B72.09B
Cash Flow
Free Cash Flow8.39B7.27B2.76B-768.58M-19.65B6.59B
Operating Cash Flow15.46B16.34B13.25B9.65B-6.35B25.25B
Investing Cash Flow-10.46B-7.71B-9.29B-8.51B-6.40B-18.05B
Financing Cash Flow-14.07B-8.17B-4.70B-1.18B11.92B-7.16B

Huadian Power International Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.28
Price Trends
50DMA
4.45
Negative
100DMA
4.35
Negative
200DMA
4.27
Negative
Market Momentum
MACD
-0.05
Positive
RSI
37.52
Neutral
STOCH
21.43
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 4.28 is below the 20-day moving average (MA) of 4.42, below the 50-day MA of 4.45, and above the 200-day MA of 4.27, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.52 is Neutral, neither overbought nor oversold. The STOCH value of 21.43 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$64.28B7.8614.91%5.63%8.09%24.77%
73
Outperform
HK$91.17B6.9313.23%5.96%1.42%-10.32%
72
Outperform
HK$42.06B11.557.09%6.77%4.20%-5.31%
68
Neutral
HK$61.58B8.3220.65%5.70%-0.44%333.39%
67
Neutral
HK$106.32B10.006.88%5.38%-9.28%-7.71%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
63
Neutral
HK$123.48B10.008.00%4.65%-3.78%34.93%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1071
Huadian Power International
4.28
0.58
15.55%
HK:0991
Datang International Power Generation Co
2.25
0.87
63.52%
HK:0916
China Longyuan Power Group
6.66
0.16
2.46%
HK:2380
China Power International Development
3.38
0.48
16.35%
HK:0836
China Resources Power Holdings Co
17.56
-0.74
-4.05%
HK:0902
Huaneng Power International
6.21
2.14
52.58%

Huadian Power International Corporate Events

Huadian Power International Announces Board Composition and Roles
Nov 18, 2025

Huadian Power International Corporation Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement outlines the structure of the board, including executive, non-executive, and independent non-executive directors, and provides information on the membership of four key board committees. This organizational update is crucial for stakeholders as it reflects the company’s governance and strategic direction.

Huadian Power International Announces Key Governance Changes at EGM
Nov 18, 2025

Huadian Power International Corporation Limited held its third extraordinary general meeting for 2025, where all proposed resolutions were passed. Key decisions included the abolishment of the supervisory committee, the election of an employee representative director, and changes to the board’s special committees. These changes are expected to streamline governance and potentially enhance operational efficiency, impacting the company’s strategic direction and stakeholder engagement.

Huadian Power International Enhances Governance with New Audit Committee
Nov 18, 2025

Huadian Power International Corporation Limited has established an Audit Committee under its Board of Directors to enhance decision-making processes and strengthen corporate governance. The committee is tasked with overseeing financial reporting, internal control, and risk management, ensuring effective communication between internal and external audits, and maintaining a robust risk management system. This move is expected to improve the company’s operational oversight and align with regulatory requirements, potentially enhancing stakeholder confidence.

Huadian Power International Enhances Governance with New Nomination Committee
Nov 18, 2025

Huadian Power International Corporation Limited has established a Nomination Committee under its Board of Directors to enhance decision-making and corporate governance. The committee is responsible for setting standards and procedures for selecting directors and senior management, reviewing candidates, and making recommendations on appointments or dismissals. This move is expected to streamline governance processes and ensure a more structured approach to leadership selection, potentially impacting the company’s strategic direction and stakeholder confidence.

Huadian Power International Establishes Remuneration and Appraisal Committee
Nov 18, 2025

Huadian Power International Corporation Limited has established a Remuneration and Appraisal Committee under its Board of Directors to standardize the processes related to remuneration and appraisal of directors and senior management. This committee is responsible for formulating appraisal standards, reviewing remuneration policies, and making recommendations to the Board on various matters including remuneration, share incentive plans, and employee stock ownership plans. The establishment of this committee aims to enhance the company’s governance structure and ensure transparent decision-making processes.

Huadian Power Reports Strong Q3 2025 Financial Performance
Oct 28, 2025

Huadian Power International Corporation Limited announced its unaudited financial results for the third quarter of 2025, showing a notable increase in profitability. The company’s total profit rose by 30.63% compared to the same period last year, and net profit attributable to shareholders increased by 20.32%. These results indicate a strong operational performance and improved financial health, which may positively impact the company’s market position and stakeholder confidence.

Huadian Power International Announces Governance Restructuring
Oct 28, 2025

Huadian Power International Corporation Limited has announced proposed amendments to its Articles of Association and the abolishment of its Supervisory Committee. These changes are in response to new regulations and aim to update the company’s governance structure, including adjustments to share capital, board structure, and committee responsibilities, enhancing corporate governance and compliance.

Huadian Power International Announces Extraordinary General Meeting for Governance Changes
Oct 28, 2025

Huadian Power International Corporation Limited has announced an extraordinary general meeting scheduled for November 18, 2025, in Beijing. The meeting will address special resolutions, including amendments to the Articles of Association, the abolishment of the Supervisory Committee, and changes to the rules of procedures for both general and board meetings. These changes could significantly impact the company’s governance structure and operational procedures.

Huadian Power Reports Decline in Power Generation and Tariffs for 2025
Oct 20, 2025

Huadian Power International Corporation Limited reported a decrease in power generation and on-grid electricity sales for the first three quarters of 2025, with figures dropping by approximately 5.87% and 5.94% respectively compared to the previous year. This decline is attributed to the increased capacity of new energy sources and reduced utilization of coal-fired units. Additionally, the average tariff for on-grid electricity sold decreased by about 2.76%, impacting the company’s revenue.

Huadian Power to Announce Q3 2025 Financial Results
Oct 15, 2025

Huadian Power International Corporation Limited has announced that its board of directors will meet to discuss and vote on the publication of the company’s unaudited third quarterly results for the period ending September 30, 2025. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and operational progress over the past nine months.

Huadian Power Announces 2025 Interim Dividend and Tax Details
Oct 9, 2025

Huadian Power International Corporation Limited has announced an interim dividend for 2025, declaring RMB 0.09 per share, which will be paid on 14 November 2025. The announcement includes details on the withholding tax applicable to different types of shareholders, impacting both foreign and mainland investors, which may influence their investment strategies.

Huadian Power International Announces Board Composition and Roles
Sep 28, 2025

Huadian Power International Corporation Limited has announced the composition of its board of directors and their respective roles and functions. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the organization.

Huadian Power Announces Resignation of Non-Executive Director
Sep 28, 2025

Huadian Power International Corporation Limited announced the resignation of Mr. Zhao Wei as a non-executive director and a member of the strategic committee. His resignation, due to personal work reasons, is effective immediately. The company expressed gratitude for Mr. Zhao’s diligent service, and he confirmed no disagreements with the board or matters needing attention from shareholders or creditors.

Huadian Power International Announces 2025 Interim Dividend
Sep 26, 2025

Huadian Power International Corporation Limited announced an interim cash dividend of RMB 0.09 per share for the financial year ending December 31, 2025. The dividend will be paid in Hong Kong dollars at an exchange rate of RMB 1 to HKD 1.09345, with a payment date set for December 31, 2025. The announcement also detailed the withholding tax rates applicable to different categories of shareholders, including a 10% tax for non-resident enterprises and Northbound Trading investors, and a 20% tax for Mainland individual investors and securities investment funds through Southbound Trading.

Huadian Power Announces EGM Results and Board Changes
Sep 25, 2025

Huadian Power International Corporation Limited announced the results of its extraordinary general meeting held on September 25, 2025, where all proposed resolutions were approved. Key outcomes include the election of Mr. Li Quancheng as an executive director and Mr. Huang Kemeng as an independent non-executive director. The meeting also approved the distribution of an interim dividend and changes in the board’s special committees, which may impact the company’s governance and strategic direction.

Huadian Power International Announces Board Composition
Sep 25, 2025

Huadian Power International Corporation Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement provides clarity on the governance structure of the company, potentially impacting its strategic direction and operational oversight, which is crucial for stakeholders and investors monitoring the company’s leadership dynamics.

Huadian Power International Announces 2025 Interim Dividend
Sep 25, 2025

Huadian Power International Corporation Limited has announced an interim cash dividend of RMB 0.09 per share for the financial year ending December 31, 2025. The dividend, payable in Hong Kong dollars at a rate of HKD 0.09841 per share, reflects the company’s stable financial performance and commitment to returning value to its shareholders. The announcement includes details on withholding tax rates applicable to different categories of shareholders, indicating the company’s compliance with tax regulations and its transparency in financial dealings.

Huadian Power Boosts Investment in Hydropower Development
Sep 22, 2025

Huadian Power International Corporation Limited has announced a capital increase in Huadian Jinsha River Upstream Hydropower Development Co., Ltd. The agreement for this connected transaction was formally entered into on September 22, 2025, following approval by the company’s Board and independent directors. This move is expected to enhance the company’s operational capabilities in hydropower development, potentially strengthening its position in the energy market.

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: Nov 04, 2025