Looks like I was right. And Morning Star who had $22 target price. Now https://thediplomat.com/2021/09/chinas-hydropower-plan-on-the-brahmaputra/ has predicted $29 (converted from Yuan) as the new target. I'm guessing it will drop a dollar or so after they pay the dividend in a week. That should have been worked into the price since the ex-date has passed. But investors always mess that up.
Analysts have trashed it, probably rightly so at the time. But the damage (price drop) has been done, and current price is not representative of what the company is really worth. The following is what I wrote up for someone (good & bad points) looking for a pick back in February when the price was below $13. I think this analysis still holds water. Please LMK if you think I'm way off base on anything.
• It is (or was) primarily a coal based electricity provider. This is bad because China starting in October announced a government mandated shift to green energy (which is why my solar based Chinese stocks have taken off) • BUT… This company has divested some of its coal plants. Plus it has also been adding several different types of green power plants. (solar, wind & biomass). • It also builds green power plants for other companies other than itself. • I am not sure about the mix of coal vs. green (most of the financials on their site are in .pdf format in Chinese); but they’re moving in the right direction. • Analysts have been giving this company negative & sell ratings starting in October because they’re primarily coal and China is now pushing green. Plus the price of coal has increased and should reduce profits. • Even during a bull market all this has succeeded in pushing the stock value down; and even though coal price increases have reduced profits; they were still profitable during that time. Therefore the value as a company is still the same or higher than it was when it was trading at close to $20. • It appears (just my best guess) as though the price drop has hit bottom. Their tangible price book ratio is about .5 Anything below 1 is generally undervalued; assuming the financial statements aren’t fudged. But even so, a ratio that low is insane. Price/book ratio’s don’t universally mean the same thing. But for the energy utility industry average is between 4 & 5. • They also pay dividends regularly. Which is a good thing but that is normal for the industry. • Morningstar has a target of $22; but they don’t say when.
Huaneng Power International, Inc. Anhui Huaining Shijing Wind Farm Project Obtained Approval
Huaneng Power (NYSE:HNP) Intraday Stock Chart
Today : Wednesday 11 December 2013 Click Here for more Huaneng Power Charts.
BEIJING, Dec. 11, 2013 /PRNewswire/ -- Huaneng Power International, Inc. ("HPI" or the "Company") (NYSE: HNP; HKEx: 902; SSE: 600011) today announced that Huaneng Huaining Shijing Wind Farm Project (which is wholly-owned by the Company) in Anhui had recently obtained the approval from the Development and Reform Commission of Anhui Province.
Shijing Wind Farm Project has a planned installed capacity of 50MW with an estimated total investment of RMB411 million. 20% of the investment will be project capital to be contributed by the Company from its internal funds while the remaining investment will be funded by bank loans.
Huaneng Power International Inc. (HNP): Electric Utilities Industry. Market cap of $6.62B. Institutional investors currently own 6,879,938 vs. 6,112,150 shares held three months ago (12.56% change). Short float at 0.57%, which implies a short ratio of 3.36 days. The stock has gained 3.34% over the last year.
Huaneng Power International
Type Public (SEHK: 0902, SSE: 600011, NYSE: HNP)
Industry Power generation
Headquarters Beijing, China
Area served People's Republic of China
Key people Chairman: Mr. Huang Yongda
Parent China Huaneng Group
Website Huaneng Power International
Huaneng Power International Inc. (SEHK: 0902, SSE: 600011, NYSE: HNP), or Huaneng, was established in 1994 administrated by the State Council of the People's Republic of China. It is one of the five largest power producers in China. It engages in the development, construction and operation of large power plants. China Huaneng Group has a 51% stake in the company.
In 1998 Huaneng acquired Tuas Power from Singapore's Temasek for $3 billion US dollars.