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CGN Power Co (HK:1816)
:1816

CGN Power Co (1816) AI Stock Analysis

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HK:1816

CGN Power Co

(1816)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
HK$3.50
â–²(12.54% Upside)
Action:DowngradedDate:12/19/25
The overall stock score of 58 reflects significant challenges in financial performance, particularly in revenue and cash flow declines, and high leverage. Technical analysis indicates a bearish trend, further impacting the score. However, a fair valuation and attractive dividend yield provide some support.
Positive Factors
Operational efficiency
Sustained EBIT/EBITDA margins show the firm runs nuclear operations efficiently, controlling O&M and fixed costs across units. Over 2–6 months this operational leverage supports cash generation for refueling and maintenance, preserving service reliability and long-term plant economics.
Regulated, contract-based revenue
Core revenues derive from regulated tariffs and long-term contractual offtake, providing predictable cash flows and revenue visibility. This structural stability reduces volatility, supports planning for capex and debt servicing, and underpins sustainable earnings in the medium term.
Scale and vertical scope
Participation across development, construction, operation and technical services creates scale, technical know-how and cross-selling potential. These structural advantages lower unit costs, help secure project pipeline and provide diversified revenue sources beyond pure power sales over coming months.
Negative Factors
High leverage
A debt/equity ratio near 1.84 indicates significant financial leverage, increasing interest burden and reducing flexibility to fund capex or withstand shocks. Over 2–6 months, elevated leverage heightens refinancing and covenant risk if cash flow weakens or rates change.
Free cash flow deterioration
A ~41% drop in free cash flow signals weakening ability to convert earnings into spendable cash, constraining capacity for maintenance, investments and debt service. Persisting this decline would erode liquidity buffers and force reliance on new financing or asset monetization.
Declining revenue trend
A pronounced TTM revenue decline (~24%) reduces scale benefits and pressures margins and returns. Unless reversed by higher generation, tariffs or contract wins, sustained top-line contraction undermines long-term profitability, capital allocation and the company’s ability to deleverage.

CGN Power Co (1816) vs. iShares MSCI Hong Kong ETF (EWH)

CGN Power Co Business Overview & Revenue Model

Company DescriptionCGN Power Co., Ltd. generates and sells nuclear power in the People's Republic of China. The company is also involved in the construction activities. As of December 31, 2021, it operated and managed 25 nuclear power generating units with a total installed capacity of 28,261 megawatts. The company was incorporated in 2014 and is headquartered in Shenzhen, the People's Republic of China. CGN Power Co., Ltd. is a subsidiary of China General Nuclear Power Corporation.
How the Company Makes MoneyCGN Power generates revenue primarily through the sale of electricity produced by its nuclear power plants. The company operates under a regulated pricing framework, which ensures a stable income stream as electricity prices are often set by government authorities. Key revenue streams include the sale of electricity to state-owned power grid operators, long-term power purchase agreements, and incentives for renewable energy generation. Additionally, CGN Power may benefit from government subsidies and support for nuclear energy development. The company's strategic partnerships with other energy firms and government entities also enhance its operational efficiency and market reach, further solidifying its financial performance.

CGN Power Co Financial Statement Overview

Summary
CGN Power Co faces challenges with declining revenue and cash flow, coupled with high leverage. While operational efficiency remains a strength, the company must address its revenue growth and cash generation issues to ensure long-term financial stability. The high debt levels pose a risk, necessitating careful management to avoid potential financial distress.
Income Statement
65
Positive
The income statement shows a declining revenue trend with a negative growth rate of -24.1% in the TTM period, indicating potential challenges in maintaining sales levels. Gross profit margin and net profit margin have decreased slightly compared to previous years, reflecting pressure on profitability. However, the company maintains a reasonable EBIT and EBITDA margin, suggesting operational efficiency despite revenue challenges.
Balance Sheet
60
Neutral
The balance sheet reveals a high debt-to-equity ratio of 1.84, indicating significant leverage, which could pose financial risk if not managed properly. The return on equity has decreased to 7.74% in the TTM period, reflecting reduced profitability for shareholders. The equity ratio is moderate, suggesting a balanced asset structure but with room for improvement in reducing debt levels.
Cash Flow
55
Neutral
Cash flow analysis indicates a significant decline in free cash flow growth by -40.69% in the TTM period, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is moderate, but the free cash flow to net income ratio has decreased, suggesting challenges in converting income to cash. This could impact the company's ability to fund operations and investments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue84.25B86.80B82.55B82.82B80.68B70.58B
Gross Profit26.58B29.41B29.69B27.54B26.78B25.54B
EBITDA31.31B37.76B38.18B33.87B34.41B34.16B
Net Income9.41B10.81B10.72B9.96B9.76B9.56B
Balance Sheet
Total Assets447.13B425.40B415.25B409.02B399.99B391.90B
Cash, Cash Equivalents and Short-Term Investments28.53B16.79B15.58B14.84B15.83B12.13B
Total Debt226.40B199.34B207.29B206.42B210.49B213.21B
Total Liabilities271.98B253.08B249.95B251.09B249.08B250.27B
Stockholders Equity123.35B119.44B113.24B107.03B100.91B95.27B
Cash Flow
Free Cash Flow7.24B18.35B18.87B19.53B20.47B16.65B
Operating Cash Flow34.10B38.02B33.12B31.37B34.91B30.15B
Investing Cash Flow-26.11B-20.17B-12.51B-14.38B-14.57B-11.76B
Financing Cash Flow-296.32M-17.97B-19.09B-20.90B-17.49B-24.37B

CGN Power Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.11
Price Trends
50DMA
3.13
Positive
100DMA
3.09
Positive
200DMA
2.98
Positive
Market Momentum
MACD
0.05
Negative
RSI
70.17
Negative
STOCH
80.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1816, the sentiment is Positive. The current price of 3.11 is below the 20-day moving average (MA) of 3.19, below the 50-day MA of 3.13, and above the 200-day MA of 2.98, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 70.17 is Negative, neither overbought nor oversold. The STOCH value of 80.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1816.

CGN Power Co 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$69.03B4.3914.91%5.73%8.09%24.77%
73
Outperform
HK$100.54B3.1111.20%5.89%1.42%-10.32%
68
Neutral
HK$82.12B4.3420.65%5.62%-0.44%333.39%
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
63
Neutral
HK$128.23B4.958.00%4.74%-3.78%34.93%
58
Neutral
HK$235.34B12.727.74%3.50%-1.16%-14.97%
56
Neutral
HK$134.09B15.607.04%5.33%-9.28%-7.71%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1816
CGN Power Co
3.51
1.13
47.42%
HK:0991
Datang International Power Generation Co
2.86
1.44
100.84%
HK:0916
China Longyuan Power Group
8.44
2.73
47.76%
HK:0836
China Resources Power Holdings Co
19.42
1.97
11.30%
HK:1071
Huadian Power International
4.71
0.63
15.36%
HK:0902
Huaneng Power International
6.29
2.07
49.02%

CGN Power Co Corporate Events

CGN Power Names Veteran Executive Zhou Jianping as General Counsel
Jan 21, 2026

CGN Power Co., Ltd. has appointed vice president Zhou Jianping as its general counsel, with his term running from 21 January 2026 to 31 December 2027. Zhou, a doctorate holder and professorate senior engineer with more than 25 years’ experience in the nuclear power industry, has held a series of senior roles across the group, including key positions at Guangxi Fangchenggang Nuclear Power Co., Ltd. and leadership of CGN Power’s Safety, Quality and Environmental Department. The company said Zhou will not receive additional remuneration for concurrently serving as general counsel, and confirmed he has no relationships with major shareholders or directors and holds no disclosable interests in the company’s securities, underscoring governance continuity and regulatory compliance in its senior management structure.

The most recent analyst rating on (HK:1816) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on CGN Power Co stock, see the HK:1816 Stock Forecast page.

CGN Power Opens Conversion Window for A Share Convertible Bonds
Jan 12, 2026

CGN Power Co., Ltd. has announced that its A Share Convertible Corporate Bonds, issued to non-specific investors, will become eligible for conversion into A shares of the company starting from January 15, 2026, in accordance with the terms set out in its offering circular and relevant regulations. The commencement of bond-to-share conversion provides bondholders with an avenue to transition into equity, potentially broadening the company’s A-share investor base, affecting its capital structure, and influencing trading liquidity and ownership dynamics in the coming period.

The most recent analyst rating on (HK:1816) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on CGN Power Co stock, see the HK:1816 Stock Forecast page.

CGN Power Posts Higher 2025 Nuclear Output and Details Maintenance Schedule
Jan 8, 2026

CGN Power Co. reported that its nuclear power generating units produced approximately 247,013 GWh of electricity in 2025, a 2% increase year on year, with on-grid power generation rising 2.36% to about 232,648 GWh. Growth was supported by higher output at several plants, notably Daya Bay and Fangchenggang—where Unit 4 entered commercial operation in May 2024—partially offset by modest declines at Yangjiang and Taishan. The company also benefited from an increase in Daya Bay’s installed capacity following a new power business licence and shorter refuelling outages compared with 2024. Operationally, the group completed 16 annual refuelling outages, two ten-year outages and an initial outage by the end of 2025, and plans further annual and ten-year outages in early 2026, underscoring ongoing maintenance and fleet reliability efforts that are critical to sustaining stable output and regulatory compliance.

The most recent analyst rating on (HK:1816) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on CGN Power Co stock, see the HK:1816 Stock Forecast page.

CGN Power Begins Full Construction of 1,245MW Lufeng Unit 2 Nuclear Reactor
Dec 22, 2025

CGN Power has commenced full-scale construction of Lufeng Unit 2, a 1,245MW nuclear power reactor under its subsidiary CGN Lufeng Nuclear Power Co., Ltd., following the first concrete pour for the main plant on 22 December 2025. The start of civil construction for this large-scale unit marks another step in the company’s capacity expansion in nuclear power generation, underscoring its role in supporting China’s growing demand for stable, low‑carbon electricity, while the company advises investors to remain aware of investment risks associated with project development.

The most recent analyst rating on (HK:1816) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on CGN Power Co stock, see the HK:1816 Stock Forecast page.

CGN Power Delays Huizhou Nuclear Units to 2026 After Construction Review
Dec 22, 2025

CGN Power has revised the construction timetable for Huizhou nuclear power Units 1 and 2, both HPR1000 reactors currently in the commissioning phase, pushing back their expected commercial operation from the original targets in 2025–2026 to the first half and second half of 2026, respectively. The company said the delay follows an overall evaluation of the project and is intended to ensure high-quality, safe and stable operation once the units come online, and it will continue to strengthen safety, quality, schedule and investment control while cautioning investors that current construction progress should not be used as a proxy for its revenue or profit performance.

The most recent analyst rating on (HK:1816) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on CGN Power Co stock, see the HK:1816 Stock Forecast page.

CGN Power Co. Begins Full Construction of Ningde Unit 6
Dec 16, 2025

CGN Power Co., Ltd. announced the commencement of full-scale construction of Ningde Unit 6, a nuclear reactor with a capacity of 1,210MW, marking the start of its civil construction phase. This development signifies a strategic advancement in the company’s nuclear power capabilities, potentially enhancing its industry positioning and operational capacity.

The most recent analyst rating on (HK:1816) stock is a Sell with a HK$3.20 price target. To see the full list of analyst forecasts on CGN Power Co stock, see the HK:1816 Stock Forecast page.

CGN Power Co., Ltd. Announces Leadership Changes
Dec 11, 2025

CGN Power Co., Ltd. announced the retirement of its Executive Director, President, and Authorized Representative, Mr. Gao Ligang, due to reaching the age of retirement. His resignation will not affect the company’s operations or board quorum. The company has appointed Mr. Pang Songtao as the new President and Authorized Representative, who brings over 30 years of experience in the nuclear power industry. This leadership change is expected to continue supporting the company’s strategic goals and operational stability.

The most recent analyst rating on (HK:1816) stock is a Sell with a HK$3.20 price target. To see the full list of analyst forecasts on CGN Power Co stock, see the HK:1816 Stock Forecast page.

CGN Power Co. Announces Board Composition and Roles
Dec 11, 2025

CGN Power Co., Ltd. has announced the composition of its board of directors and their respective roles within various board committees. This announcement outlines the leadership structure, which is crucial for stakeholders as it may influence the company’s governance and strategic direction, particularly in areas such as audit, risk management, remuneration, nomination, and nuclear safety.

The most recent analyst rating on (HK:1816) stock is a Sell with a HK$3.20 price target. To see the full list of analyst forecasts on CGN Power Co stock, see the HK:1816 Stock Forecast page.

CGN Power Co. Initiates Construction of Zhaoyuan Unit 1
Nov 17, 2025

CGN Power Co., Ltd. has announced the commencement of full-scale construction of Zhaoyuan Unit 1, a nuclear reactor with a capacity of 1,214MW, set to begin on November 18, 2025. This development marks a significant step in the company’s expansion and utilization of HPR1000 nuclear power technology, potentially enhancing its market position and operational capabilities.

The most recent analyst rating on (HK:1816) stock is a Sell with a HK$3.20 price target. To see the full list of analyst forecasts on CGN Power Co stock, see the HK:1816 Stock Forecast page.

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: Dec 19, 2025