China National Nuclear Power Co., Ltd. (601985.SS) stock analysis

In our weekly check, China National Nuclear Power Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 8.

About China National Nuclear Power Co., Ltd.

China National Nuclear Power Co., Ltd. is an Utilities company (Regulated Electric) based in China, listed on SHH as 601985.SS.

What our checks show for 601985.SS

Red flags

• Net debt is 12x a year of EBITDA (debt/equity 4.23). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 3.9 points over 5 years, to 9.2%: the company keeps less of each sale as profit.
• The gross margin fell by 7.7 points, to 36.2%: costs are rising faster than prices.
• Free cash flow is negative (-50.6% of revenue): the business spends more cash than it brings in.
• The dividend takes 198% of profit: little cushion if profit falls.
• The stock has fallen as much as 71% from a peak. Would you have held through that?
• Return on capital (ROCE) is only 3%.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Revenue grew only 4% a year over the last 3 years.
• Earnings per share fell 4.6% a year over the last 3 years.
• Net profit fell 6.5% a year over the last 3 years.
• The net margin is only 9.2%: little room if costs rise.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 5.77x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 11.1% a year over the next years.
• A large company: market value $30.34 billion.
• The price moves calmly: 17.2% annual volatility.
• Beta 0.1: the stock usually moves less than the market.
• Actively traded: about 94.1 million shares a day.

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Questions

What grade does China National Nuclear Power Co., Ltd. (601985.SS) have?

In our weekly check, China National Nuclear Power Co., Ltd. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 12 pass, warnings: 5, red flags: 8. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 601985.SS stock?

This week's biggest flags for China National Nuclear Power Co., Ltd.: High debt, Margins falling, Gross margin falling. In total 13 of 25 checks show a warning or a red flag.

What does China National Nuclear Power Co., Ltd. do?

China National Nuclear Power Co., Ltd. is an Utilities company (Regulated Electric) based in China, listed on SHH as 601985.SS.

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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