Huaneng Power International, Inc.
Huaneng Power International, Inc. Fundamental Analysis
Huaneng Power International, Inc. (0902.HK) shows weak financial fundamentals with a PE ratio of 10.71, profit margin of 3.73%, and ROE of 6.07%. The company generates $270.3B in annual revenue with weak year-over-year growth of -3.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 7.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0902.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0902.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0902.HK trades at attractive valuation levels.
Growth Score
Moderate0902.HK shows steady but slowing expansion.
Financial Health Score
Weak0902.HK carries high financial risk with limited liquidity.
Profitability Score
Weak0902.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0902.HK Expensive or Cheap?
P/E Ratio
0902.HK trades at 10.71 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0902.HK's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Huaneng Power International, Inc. at 0.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.23 times EBITDA. This is generally considered low.
How Well Does 0902.HK Make Money?
Net Profit Margin
For every $100 in sales, Huaneng Power International, Inc. keeps $3.73 as profit after all expenses.
Operating Margin
Core operations generate 8.91 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.07 in profit for every $100 of shareholder equity.
ROA
Huaneng Power International, Inc. generates $1.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Huaneng Power International, Inc. produces operating cash flow of $62.10B, showing steady but balanced cash generation.
Free Cash Flow
Huaneng Power International, Inc. generates weak or negative free cash flow of $-22.21B, restricting financial flexibility.
FCF Per Share
Each share generates $-1.08 in free cash annually.
FCF Yield
0902.HK converts -17.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 0902.HK Stacks Against Its Sector Peers
| Metric | 0902.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.71 | 20.35 | Better (Cheaper) |
| ROE | 6.07% | 922.00% | Weak |
| Net Margin | 3.73% | 765.00% | Weak |
| Debt/Equity | 1.94 | 1.50 | Weak (High Leverage) |
| Current Ratio | 0.52 | 1.44 | Weak Liquidity |
| ROA | 1.40% | -5800.00% (disorted) | Weak |
0902.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Huaneng Power International, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.46%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
547.24%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
35.39%
Industry Style: Defensive, Dividend, Income
High Growth