Huadian Power International (1071) AI Stock Analysis

• Market Cap: HK$61.58B
• Dividend Yield: 5.73%
• Average Volume (3M): 10.12M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.46
• Revenue Growth: 8.09%
• EPS Growth: 24.77%
• Country: HK
• Employees: 25,093
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.22
• Shares Outstanding: 1,717,233,600
• 10 Day Avg. Volume: 9,031,404
• 30 Day Avg. Volume: 10,124,986
• PEG Ratio: 0.06
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 5.29
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$4.50 ▲(8.96% 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

Profitability recovery

The company has returned to profitability with a positive net margin and strong EBIT margin, indicating core generation operations are economically viable. Sustained operating profit supports reinvestment in plants and underpins dividend capacity over the medium term.

Efficient use of equity

An ROE near 9% suggests management generates reasonable returns from shareholder capital, reflecting operational effectiveness in power generation. This durability supports long‑term shareholder value creation and the ability to fund projects if cash flows hold.

Top-line and EPS growth

Positive revenue and strong EPS growth indicate improving demand realization and better profit conversion. If sustained, this trend strengthens the company's cash generation profile and its capacity to service debt and finance incremental renewable or efficiency projects.

Negative Factors

High leverage

A high debt load increases interest and refinancing risk, reducing financial flexibility for capex or restructuring. In a capital-intensive utility business, sustained leverage can strain liquidity and heighten vulnerability to rate or demand shocks over the medium term.

Weak cash conversion

Declining operating cash flow and negative FCF growth signal difficulty turning accounting profits into spendable cash. This undermines the company's ability to service debt, fund maintenance or expansion, and sustain dividends without raising external financing.

Revenue volatility & margin pressure

Fluctuating revenue and a falling EBITDA margin point to exposure to demand cycles and fuel or cost pressures. Persistent volatility reduces predictability of cash flows and complicates multi‑year planning for plant maintenance, investments, and tariff negotiations.

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 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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	119.77B	112.99B	117.18B	107.06B	104.42B	90.74B
Gross Profit	11.77B	9.92B	7.53B	459.56M	-6.43B	14.67B
EBITDA	9.08B	22.75B	19.82B	12.70B	7.00B	23.97B
Net Income	6.38B	5.70B	4.52B	-638.11M	-6.75B	4.44B
Balance Sheet
Total Assets	260.00B	223.88B	223.04B	223.26B	218.86B	234.61B
Cash, Cash Equivalents and Short-Term Investments	6.79B	5.85B	5.63B	6.28B	6.09B	6.68B
Total Debt	110.47B	95.72B	117.59B	125.14B	116.70B	108.29B
Total Liabilities	163.00B	137.80B	139.66B	152.81B	145.29B	141.65B
Stockholders Equity	64.67B	67.33B	69.76B	59.51B	61.83B	72.09B
Cash Flow
Free Cash Flow	8.39B	7.27B	2.76B	-768.58M	-19.65B	6.59B
Operating Cash Flow	15.46B	16.34B	13.25B	9.65B	-6.35B	25.25B
Investing Cash Flow	-10.46B	-7.71B	-9.29B	-8.51B	-6.40B	-18.05B
Financing Cash Flow	-14.07B	-8.17B	-4.70B	-1.18B	11.92B	-7.16B

Huadian Power International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 4.13 is below the 20-day moving average (MA) of 4.14, below the 50-day MA of 4.25, and below the 200-day MA of 4.28, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 45.05 is Neutral, neither overbought nor oversold. The STOCH value of 72.86 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1071	73 Outperform	HK$61.58B	7.61	14.91%	5.73%	8.09%	24.77%
0836	73 Outperform	HK$92.15B	7.01	13.23%	5.89%	1.42%	-10.32%
2380	72 Outperform	HK$40.33B	11.08	7.09%	6.83%	4.20%	-5.31%
0991	68 Neutral	HK$67.02B	8.58	20.65%	5.62%	-0.44%	333.39%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0902	63 Neutral	HK$114.06B	9.14	8.00%	4.74%	-3.78%	34.93%
0916	56 Neutral	HK$112.30B	10.55	6.88%	5.33%	-9.28%	-7.71%

Huadian Power International Corporate Events

Huadian Power International Posts Mixed 2025 Output as New Energy Squeezes Coal-Fired Utilisation

Huadian Power International reported that in 2025 its total power generation reached 262.27 million MWh and on-grid electricity sales were 246.44 million MWh, both up around 18% versus previously announced data for 2024 but down roughly 7% after retrospective adjustments to last year’s figures. The company attributed the decline relative to the adjusted prior-year base to rising installed capacity from new energy sources and reduced utilization hours of its coal-fired units, while its average on-grid tariff edged up 0.27% to about RMB 513.29 per MWh against the previously announced prior-year level but fell 2.34% when compared with retrospectively adjusted data, underscoring the competitive and regulatory pressures facing traditional thermal generators amid China’s energy transition.

The most recent analyst rating on (HK:1071) stock is a Buy with a HK$4.50 price target. To see the full list of analyst forecasts on Huadian Power International stock, see the HK:1071 Stock Forecast page.

Huadian Power Announces 2024 Asset Verification for Energy Generation

Huadian Power International Corporation Limited announced the 2024 annual verification of its non-listed conventional energy-based electricity generation assets. This move is part of a strategic initiative by its controlling shareholder, China Huadian Corporation Limited, to address business competition and enhance asset integration within the company. The verification process will determine if these assets meet the conditions for injection into the company, with a timeline for completion set within three years after meeting the necessary conditions.

The most recent analyst rating on (HK:1071) stock is a Buy 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 International Announces Board Composition and Roles

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.

The most recent analyst rating on (HK:1071) stock is a Buy 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 International Announces Key Governance Changes at EGM

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.

The most recent analyst rating on (HK:1071) stock is a Buy 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 International Enhances Governance with New Audit Committee

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.

The most recent analyst rating on (HK:1071) stock is a Buy 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 International Enhances Governance with New Nomination Committee

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.

The most recent analyst rating on (HK:1071) stock is a Buy 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 International Establishes Remuneration and Appraisal Committee

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.

The most recent analyst rating on (HK:1071) stock is a Buy 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.