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Huadian Power International (1071) AI Stock Analysis

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HK:1071

Huadian Power International

(HKEX:1071)

Select Model
Rating:63Neutral
Price Target:HKD 4.50â–²(5.88% Upside)
Action:reiterated
Date:09/09/26

The score is driven primarily by improved profitability but offset by elevated leverage and weaker recent revenue/cash-flow momentum. Valuation is a clear positive (high dividend yield and moderate P/E), while technical indicators are neutral-to-soft with no strong uptrend signal.

Positive Factors
Improved ProfitabilityThe return to substantial profitability after losses in 2021–2022 indicates a meaningful improvement in operating economics. A healthy EBITDA margin provides a stronger base for funding maintenance, investment and debt obligations over the next several quarters.
Negative Factors
High LeverageLeverage at roughly 3.2 times debt-to-equity is a substantial constraint for a capital-intensive utility. The sharp increase from prior years raises sensitivity to interest costs and refinancing needs, reducing flexibility to invest or absorb weaker operating conditions.

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

-20%-15%-10%-5%0%5%10%15%20%HK:1071-6.94%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 9.28B
Dividend Yield
6.09%
Average Volume (3M)
6.32M
Price to Earnings (P/E)
18.0
Beta (1Y)
0.43
Revenue Growth
12.74%
EPS Growth
6.35%
Country
Hong Kong
Employees
30,595
Sector
Utilities
Sector Strength
66
Industry
Regulated Electric

Huadian Power International Business Overview & Revenue Model

Company Description

Huadian Power International Corporation Limited, along with its various affiliates, primarily dedicates itself to generating and supplying electricity and heat. These vital energy outputs are provided to power grid corporations throughout the People'...

How the Company Makes Money

Huadian Power International primarily makes money by generating electricity and selling it to grid companies and/or through market-based power trading mechanisms in China. Its main revenue stream is electricity sales: revenue is generally a function...

Huadian Power International Financial Statement Overview

Summary

Operating performance has improved meaningfully (return to solid profitability with TTM net income of 7.8B and ~19.6% EBITDA margin), but the balance sheet is a major constraint: leverage is high (debt-to-equity ~3.2x) and recent revenue softness (~-5.8% TTM) plus only moderate FCF conversion (~0.37x of net income) reduce financial flexibility.

Income Statement

72Positive

Balance Sheet

48Neutral

Cash Flow

60Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue155.13B122.75B112.99B117.18B107.06B104.42B
Gross Profit19.39B14.04B9.92B7.53B459.56M-6.43B
EBITDA22.21B22.58B22.75B19.82B12.70B7.00B
Net Income7.77B5.91B5.70B4.52B-638.11M-6.75B
Balance Sheet
Total Assets261.27B264.34B223.88B223.04B223.26B218.86B
Cash, Cash Equivalents and Short-Term Investments6.00B6.99B5.85B5.63B6.28B6.09B
Total Debt109.63B157.58B95.72B117.59B125.14B116.70B
Total Liabilities158.53B183.22B137.80B139.66B152.81B145.29B
Stockholders Equity70.76B48.18B67.33B69.76B59.51B61.83B
Cash Flow
Free Cash Flow7.37B12.16B7.27B2.76B-768.58M-19.65B
Operating Cash Flow20.89B27.22B16.34B13.25B9.65B-6.35B
Investing Cash Flow-12.52B-14.26B-7.71B-9.29B-8.51B-6.40B
Financing Cash Flow-9.11B-12.79B-8.17B-4.70B-1.18B11.92B

Huadian Power International Technical Analysis

Technical Analysis SentimentPositive
Last Price4.25

Price Trends

50DMA4.13Positive
100DMA4.09Positive
200DMA4.14Positive

Market Momentum

MACD0.02Positive
RSI53.30Neutral
STOCH40.05Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1071, the sentiment is Positive. The current price of 4.25 is below the 20-day moving average (MA) of 4.28, above the 50-day MA of 4.13, and above the 200-day MA of 4.14, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 40.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1071.

Huadian Power International Peers Comparison

Overall Rating

UnderperformOutperform
Sector (66)

Financial Indicators

HK:1071 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0836HK:083676OutperformHKD 103.13B7.7811.72%5.48%2.19%1.10%
HK:0002HK:000269NeutralHKD 195.55B18.0410.14%4.13%-1.91%-5.03%
Sector *66Neutral$17.65B18.105.60%3.62%6.62%11.55%
HK:1071HK:107163NeutralHKD 66.66B17.975.89%6.09%12.74%6.35%
HK:0902HK:090252NeutralHKD 125.94B25.107.10%7.44%-3.23%7.26%
HK:0916HK:091652NeutralHKD 102.59B12.243.85%3.56%-6.03%-40.34%
HK:0991HK:099150NeutralHKD 82.84B12.7014.73%7.38%3.20%59.26%

* Utilities Sector Average

Performance Comparison

-20%0%20%40%HK:1071HK:0991HK:0002HK:0916HK:0836HK:0902Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1071 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1071Huadian Power International Corp Class H4.25-0.25-5.56%
HK:0991Datang International Power Generation Co2.510.2812.51%
HK:0002CLP Holdings 77.4013.5421.21%
HK:0916China Longyuan Power Group Corp Class H5.08-1.99-28.15%
HK:0836China Resources Power Holdings Co 19.922.0311.32%
HK:0902Huaneng Power International Class H6.110.101.70%

Huadian Power International Corporate Events

Huadian Power Corrects Wording in 2026 Interim Results Announcement

Aug 31, 2026

Huadian Power International has issued a clarification regarding its unaudited interim results for the six months ended 30 June 2026, following the discovery of clerical errors in the previously released document. The company stressed that the affect...

Huadian Power International Declares Interim Dividend for 2026

Aug 27, 2026

Huadian Power International Corporation Limited has announced an interim ordinary cash dividend of RMB 0.09 per share for the six months ended 30 June 2026, payable for the financial year ending 31 December 2026. The dividend for Hong Kong shareholde...

Huadian Power International Posts Strong 2026 Interim Profit and Proposes Cash Dividend

Aug 27, 2026

For the first half of 2026, Huadian Power International reported power generation of 107.79 million MWh and on-grid sales of 101.04 million MWh, generating operating revenue of RMB54.264 billion. Net profit attributable to shareholders reached RMB3.1...

Huadian Power Sets August Board Meeting to Approve Interim Results

Aug 17, 2026

Huadian Power International has scheduled a board meeting on 27 August 2026 to review and approve the publication of its unaudited interim results for the six months ended 30 June 2026. The move signals the forthcoming disclosure of the company&#8217...

Huadian Power Chairman Proposes 2026 Interim Cash Dividend Plan

Jul 28, 2026

Huadian Power International’s chairman Liu Lei has proposed that the company introduce a 2026 interim profit distribution plan, reflecting confidence in its current operating conditions and financial position. The plan aims to enhance investor...

Huadian Power Sees Double-Digit Drop in H1 2026 Output as New Energy Capacity Expands

Jul 24, 2026

Huadian Power International reported that in the first half of 2026 it generated 107.78 million MWh of electricity and sold 101.04 million MWh to the grid, declines of about 10.65% and 10.82% respectively from a year earlier. The company attributed t...

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: Sep 09, 2026