CGN Power Co Ltd

CGN Power maintains a capital-intensive balance sheet characterized by high leverage and significant asset base. Total assets stand at 505.7 billion CNY, supported by total equity of 123.2 billion CNY and total liabilities of 382.5 billion CNY. Long-term debt is substantial at 273.3 billion CNY, resulting in a debt-to-equity ratio of 2.22. Liquidity is constrained, with a current ratio of 0.66 and cash and equivalents of only 28.6 million CNY, leading to a medium liquidity risk assessment. The company operates with negative net cash after subtracting total debt.

Profitability metrics indicate modest returns relative to the asset base. The company reports a net income of 9.8 billion CNY on revenue of 75.7 billion CNY, yielding a net margin of approximately 12.9%. Return on equity is 8.33%, while return on assets is 2.03%. The valuation snapshot shows a price-to-earnings ratio of 14.8 and a price-to-book ratio of 1.23. The enterprise value to EBITDA is 19.75, and EV to revenue is 5.41.

Revenue concentration and segment details are not explicitly provided in the available data, preventing a detailed analysis of geographic or business segment exposure. The company’s activity is broadly defined as Exploration & Production within the Oil & Gas sector, but sector classification classification suggests a utility-like profile in Independent Power and Renewable Electricity Producers.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot reflects a single normalized period, with no year-over-year or quarterly trend data available to assess revenue or earnings momentum. Capital expenditure is high at 34.1 billion CNY, resulting in negative free cash flow of -16.7 billion CNY, despite positive operating cash flow of 30.0 billion CNY.

Risk factors include medium liquidity risk and low dilution risk. The key flag notes that net cash is negative after subtracting total debt, highlighting the company's reliance on debt financing. The high capital expenditure relative to operating cash flow suggests ongoing investment needs that pressure free cash flow.

Recent events and analyst sentiment indicate a positive outlook. The mean analyst price target is 4.43 CNY, with a median of 5.00 CNY and a high of 5.32 CNY. The mean recommendation is 1.89, with 5 strong buy and 2 buy ratings, and no hold ratings. This suggests strong analyst confidence in the company's future performance despite the current valuation and leverage levels.

Cash conversion ratio of 2.92 ranks as best-in-class, far surpassing the 1.22 cohort median.

Nine analysts maintain a buy recommendation, suggesting positive sentiment despite the current market price of 4.78.

Dilution risk is assessed as low, providing some protection to existing shareholders from equity erosion.

Debt-to-equity ratio of 2.22 sits in the bottom quartile, indicating significantly higher leverage than the 0.33 cohort median.

Credit risk is flagged as high, signaling potential difficulties in meeting financial obligations or servicing debt.

Revenue declined 4.1% year-over-year to 75.7 billion CNY, showing a contraction in top-line growth.

Revenue ¥75.70B, −4,1% YoY; Operating income −16,3% YoY.

• ▍Revenue ¥75.70B, −4,1% YoY
• ▍Operating income −16,3% YoY
• ▍Net income −9,9% YoY
• ▍Free cash flow −32,7% YoY
• ▍Net margin 12.9%

Revenue ¥78.94B, −4,4% YoY; Operating income +6,8% YoY.

• ▍Revenue ¥78.94B, −4,4% YoY
• ▍Operating income +6,8% YoY
• ▍Net income +1,1% YoY
• ▍Free cash flow −421,6% YoY
• ▍Net margin 13.7%

Revenue ¥82.55B, −0,3% YoY; Operating income +9,3% YoY.

• ▍Revenue ¥82.55B, −0,3% YoY
• ▍Operating income +9,3% YoY
• ▍Net income +7,6% YoY
• ▍Free cash flow +92,1% YoY
• ▍Net margin 13.0%

Revenue ¥82.82B, +2,7% YoY; Operating income +2,7% YoY.

• ▍Revenue ¥82.82B, +2,7% YoY
• ▍Operating income +2,7% YoY
• ▍Net income +2,0% YoY
• ▍Free cash flow +561,4% YoY
• ▍Net margin 12.0%

Revenue ¥80.68B; Operating income ¥18.35B.

• ▍Revenue ¥80.68B
• ▍Operating income ¥18.35B
• ▍Net margin 12.1%