Huaneng Power International, Inc. (0902.HK) stock analysis

In our weekly check, Huaneng Power International, Inc. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 7.

About Huaneng Power International, Inc.

Huaneng Power International, Inc. is an Utilities company (Independent Power Producers) based in China, listed on HKSE as 0902.HK.

What our checks show for 0902.HK

Red flags

• Net debt is 6.1x a year of EBITDA (debt/equity 2.03). That limits room in a downturn and raises refinancing risk.
• The gross margin fell by 3.7 points, to 16.7%: costs are rising faster than prices.
• Analysts expect revenue to shrink about 4.8% a year.
• The net margin is only 4.4%: little room if costs rise.
• The dividend takes 145% of profit: little cushion if profit falls.
• The stock has fallen as much as 81% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 4.4%.

Warning signs

• Operating profit covers interest only 3.4 times: a weak year could make the payments hard.
• Revenue grew only 3.9% a year over the last 3 years.
• Free cash flow is only 0.8% of revenue.
• The stock is still below its previous peak.
• The share count grew by 17.3% in 2 years: each shareholder owns a smaller slice.

Strengths

• The net margin rose by 10.8 points over 5 years, to 4.4%.
• Operating cash flow is 4.61x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 12.8% a year over the next years.
• Analysts expect the net margin to improve by 2.2 points from today's 4.4%.
• A large company: market value $16.06 billion.
• Actively traded: about 24.6 million shares a day.

Similar companies

0006.HK · 0836.HK · CEG · 1816.HK · VST

Questions

What grade does Huaneng Power International, Inc. (0902.HK) have?

In our weekly check, Huaneng Power International, Inc. is graded C (A to F). Of 24 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 0902.HK stock?

This week's biggest flags for Huaneng Power International, Inc.: High debt, Gross margin falling, Weak revenue forecast. In total 12 of 24 checks show a warning or a red flag.

What does Huaneng Power International, Inc. do?

Huaneng Power International, Inc. is an Utilities company (Independent Power Producers) based in China, listed on HKSE as 0902.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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