Chn Energy Changyuan Electric Power Co Ltd

Chn Energy Changyuan Electric Power Co Ltd maintains a capital structure heavily weighted toward debt, with long-term debt of 23.39 billion CNY against total equity of 13.32 billion CNY, resulting in a debt-to-equity ratio of 1.76. The company’s liquidity position is constrained, evidenced by a current ratio of 0.27, which indicates significant short-term obligations relative to current assets. Despite negative free cash flow of -2.46 billion CNY driven by capital expenditures of 3.53 billion CNY, operating cash flow remains positive at 3.01 billion CNY, providing a baseline for debt servicing. The market capitalization stands at 13.23 billion CNY, trading at a price-to-book ratio of 0.99, suggesting the market values the company near its tangible book value.

Profitability metrics reflect a challenging operating environment, with the company reporting a net loss of 66.17 million CNY on revenue of 13.53 billion CNY. Operating income was negative at -32.22 million CNY, indicating that core operations did not generate sufficient margin to cover fixed costs in the latest period. Return on equity is 2.94% and return on assets is 0.95%, both of which are low, reflecting the asset-intensive nature of the utility business and the current pressure on margins. The price-to-earnings ratio of 33.79 is distorted by the low net income base, while the EV/EBITDA of 68.38 suggests a high valuation relative to earnings before interest, taxes, depreciation, and amortization, likely due to the negative earnings impact.

The company’s revenue is derived from its core electric utility activities, with no specific segment or geographic breakdown provided in the available data. As a domestic Chinese utility, its revenue concentration is implicitly high within the Chinese power market. The lack of diversified segment reporting suggests a focused business model centered on power generation and distribution, exposing the company to domestic regulatory and demand fluctuations.

Growth trajectory analysis is limited by the absence of historical period data in the input. However, the current revenue base of 13.53 billion CNY provides a scale reference. The negative net income and operating income in the latest period suggest a contraction in profitability rather than growth in earnings power. Without historical trend data, it is not possible to assess year-over-year revenue growth or margin expansion trends.

Risk factors include medium liquidity risk, driven by the low current ratio of 0.27, which may indicate reliance on short-term financing or delayed payables. Dilution risk is assessed as low, with basic and diluted shares outstanding identical at 3.48 billion, indicating no immediate options or convertible securities impacting share count. A key flag notes that net cash is negative after subtracting total debt, highlighting the company’s leveraged position and dependence on external financing for capital expenditures.

Recent observations include analyst price targets with a mean, median, high, and low all set at 5.32 CNY, implying a consensus upside from the current market price of 3.80 CNY. The last actual EPS was -0.02 CNY, consistent with the reported net loss. Competitor context lists Duke Energy, NextEra Energy, and Southern Company, though no comparative metrics are provided, limiting direct peer benchmarking.

Free cash flow improved by 50.6% year-over-year, indicating better cash generation despite negative absolute values.

Analysts project a 2.1% upside to a mean price target of 5.32 CNY, suggesting modest valuation support.

Cash conversion ratio of 7.69 ranks as best-in-class within the Electric Utilities cohort of 338 peers.

Net income surged 61.7% year-over-year, demonstrating significant profitability improvement from the prior period.

Dilution risk is assessed as low, providing relative stability for existing shareholders regarding equity structure.

The company faces high credit risk, signaling potential difficulties in meeting financial obligations or debt servicing.

Debt-to-equity ratio of 1.76 places the company in the bottom quartile of its peer cohort.

Revenue ¥13.53B, −22,2% YoY; Operating income −103,4% YoY.

• ▍Revenue ¥13.53B, −22,2% YoY
• ▍Operating income −103,4% YoY
• ▍Net income −109,2% YoY
• ▍Free cash flow +29,3% YoY
• ▍Net margin -0.5%

Revenue ¥17.39B, +21,8% YoY; Operating income +85,8% YoY.

• ▍Revenue ¥17.39B, +21,8% YoY
• ▍Operating income +85,8% YoY
• ▍Net income +104,9% YoY
• ▍Free cash flow +38,8% YoY
• ▍Net margin 4.1%

Revenue ¥14.28B, −1,0% YoY; Operating income +109,9% YoY.

• ▍Revenue ¥14.28B, −1,0% YoY
• ▍Operating income +109,9% YoY
• ▍Net income +184,2% YoY
• ▍Free cash flow +23,8% YoY
• ▍Net margin 2.4%

Revenue ¥14.42B, +21,5% YoY; Operating income +387,6% YoY.

• ▍Revenue ¥14.42B, +21,5% YoY
• ▍Operating income +387,6% YoY
• ▍Net income +584,5% YoY
• ▍Free cash flow −513,7% YoY
• ▍Net margin 0.9%