CGN Power Co., Ltd. (1816.HK) stock analysis

In our weekly check, CGN Power Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6.

About CGN Power Co., Ltd.

CGN Power Co., Ltd. is an Utilities company (Independent Power Producers) based in China, listed on HKSE as 1816.HK.

What our checks show for 1816.HK

Red flags

• Net debt is 10.7x a year of EBITDA (debt/equity 0.75). That limits room in a downturn and raises refinancing risk.
• Revenue fell 6.6% a year over the last 3 years.
• Free cash flow is negative (-24.1% of revenue): the business spends more cash than it brings in.
• The stock has fallen as much as 72% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 4.1%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Operating profit covers interest only 3.9 times: a weak year could make the payments hard.
• Analysts expect the net margin to shrink by 2.1 points from today's 14.6%.
• Earnings per share fell 0.8% a year over the last 3 years.
• Net profit fell 0.3% a year over the last 3 years.
• The dividend takes 92% of profit: little cushion if profit falls.
• The stock is still below its previous peak.

Strengths

• The net margin rose by 2.5 points over 5 years, to 14.6%.
• The gross margin is 36.1% and has risen by 2.9 points: pricing power is holding.
• Operating cash flow is 3.42x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 16.1% a year over the next years.
• Analysts expect revenue to grow about 20.1% a year over the next years.
• A large company: market value $28.1 billion.

Next earnings report: 2026-10-28

Similar companies

0006.HK · 0836.HK · CEG · GULF-R.BK · VST

Questions

What grade does CGN Power Co., Ltd. (1816.HK) have?

In our weekly check, CGN Power Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 6, red flags: 6. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 1816.HK stock?

This week's biggest flags for CGN Power Co., Ltd.: High debt, Weak revenue growth, Weak free cash flow. In total 12 of 25 checks show a warning or a red flag.

What does CGN Power Co., Ltd. do?

CGN Power Co., Ltd. is an Utilities company (Independent Power Producers) based in China, listed on HKSE as 1816.HK.

When does CGN Power Co., Ltd. report earnings next?

The next earnings report is expected on 2026-10-28. We re-run the checks every week, so the grade can change after it.

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 2026-10-24

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