Guangdong Electric Power Development Co Ltd

Guangdong Electric Power Development Co Ltd maintains a highly leveraged capital structure, with total liabilities of CNY 162.59 billion against total equity of CNY 23.44 billion, resulting in a debt-to-equity ratio of 4.99. The company holds CNY 117.09 billion in long-term debt, while cash and equivalents stand at a minimal CNY 21.23 million, leading to a negative net cash position. Liquidity is constrained, evidenced by a current ratio of 0.67, which indicates that current liabilities exceed current assets. Despite this, the company generates substantial operating cash flow of CNY 10.23 billion, which partially offsets the heavy capital expenditure of CNY 12.36 billion, resulting in negative free cash flow of CNY 7.65 billion.

Profitability metrics reflect the capital-intensive nature of the utility business, with a return on equity of 1.94% and a return on assets of 0.24%. The company reports a net income of CNY 599.94 million on revenue of CNY 51.54 billion, yielding a net margin of approximately 1.16%. Operating income stands at CNY 1.42 billion. Valuation multiples are elevated relative to typical utility benchmarks, with a price-to-earnings ratio of 59.09 and an EV/EBITDA of 91.67, suggesting the market prices in significant future growth or regulatory support despite current low returns. The price-to-book ratio is 1.15, indicating a modest premium over tangible book value.

The company returned to profitability in 2024, generating 975 million CNY in net income after two years of losses.

Free cash flow improved by 24.4% year-over-year to -7.65 billion CNY, indicating better cash generation efficiency.

Cash conversion ratio of 22.49% ranks as best-in-class among 338 electric utility peers, highlighting superior cash management.

Three analysts maintain a buy recommendation for the stock, suggesting positive sentiment despite recent financial volatility.

Revenue demonstrated a 4.1% compound annual growth rate over the four-year period ending in 2026.

The debt-to-equity ratio stands at 4.99, placing the company in the bottom quartile of its peer cohort.

High credit risk is flagged for the issuer, compounded by long-term debt exceeding 117 billion CNY in 2026.

Net margin of 0.83% and operating margin of 2.86% both rank in the bottom quartile of peers.

Revenue ¥51.54B, −9,8% YoY; Operating income −42,5% YoY.

• ▍Revenue ¥51.54B, −9,8% YoY
• ▍Operating income −42,5% YoY
• ▍Net income −37,8% YoY
• ▍Free cash flow +24,4% YoY
• ▍Net margin 1.2%

Revenue ¥57.16B, −3,6% YoY; Operating income −6,6% YoY.

• ▍Revenue ¥57.16B, −3,6% YoY
• ▍Operating income −6,6% YoY
• ▍Net income −1,1% YoY
• ▍Free cash flow +40,9% YoY
• ▍Net margin 1.7%

Revenue ¥59.30B, +13,6% YoY; Operating income +164,4% YoY.

• ▍Revenue ¥59.30B, +13,6% YoY
• ▍Operating income +164,4% YoY
• ▍Net income +132,7% YoY
• ▍Free cash flow −5,1% YoY
• ▍Net margin 1.6%

Revenue ¥52.22B, +19,1% YoY; Operating income +15,0% YoY.

• ▍Revenue ¥52.22B, +19,1% YoY
• ▍Operating income +15,0% YoY
• ▍Net income −1,8% YoY
• ▍Free cash flow −18,7% YoY
• ▍Net margin -5.7%

Revenue ¥43.86B; Operating income -¥4.81B.

• ▍Revenue ¥43.86B
• ▍Operating income -¥4.81B
• ▍Net margin -6.7%