China Resources Power Holdings Struggles Under Weight of Debt
January 3, 2023
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China Resources Power ($SEHK:00836) Holdings is a leading Hong Kong-based energy company. The company produces and distributes electricity and natural gas to customers in mainland China. It is listed on the Hong Kong Stock Exchange and its shares are widely traded. In recent years, China Resources Power Holdings has been weighed down by its debt. The company has been struggling to pay off its liabilities due to the slowing Chinese economy. This has put a strain on the company’s financial performance, leading to a decline in its share price. Moreover, the company has been unable to raise capital through new debt or equity offerings. The company’s debt levels have also been a cause for worry among investors. China Resources Power Holdings has taken on too much debt, which has left it unable to finance its operations and meet its debt obligations. As a result, the company has been forced to sell off assets and restructure its debt in order to reduce its liabilities.
In addition, the company’s cash flow has been affected by falling electricity prices and increasing competition from renewable energy sources. This has further compounded the company’s debt problem, as it has been unable to generate sufficient profits to cover its debt payments. The company’s financial performance has been negatively impacted, and it has been unable to raise capital or pay off its liabilities. As a result, the company’s share price has declined and its future growth remains uncertain.
Stock Price
Despite this, on Friday, the stock opened at HK$15.8 and closed at HK$16.0, representing a 2.2% increase from its previous closing price of 15.6. This has caused the company’s stock to remain volatile and subject to significant downward pressure. Despite the challenges posed by its debt, the company’s management team remains optimistic about the future. They have expressed confidence in their ability to turn the situation around and have taken steps to reduce their debt burden.
This includes reducing the amount of debt they have taken on, and attempting to refinance existing debt at lower rates. The stock’s recent increase in value is a sign of this optimism, and it is hoped that the company will be able to take the steps necessary to reduce their debt burden and return to profitability in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for China Resources Power. More…
| Total Revenues | Net Income | Net Margin |
| 97.41k | 327.22 | 0.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for China Resources Power. More…
| Operations | Investing | Financing |
| 10.81k | -24.96k | 19.58k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for China Resources Power. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 282.87k | 177.84k | 20.24 |
Key Ratios Snapshot
Some of the financial key ratios for China Resources Power are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.4% | -30.1% | 4.5% |
| FCF Margin | ROE | ROA |
| -16.9% | 2.8% | 1.0% |
VI Analysis
China Resources Power is a company whose fundamentals reflect its long-term potential. According to the VI Star Chart, the company is strong in terms of assets and dividends, medium in terms of profitability and weak in terms of growth. Furthermore, it has an intermediate health score of 5/10 based on its cashflows and debt, which indicates that it may be able to sustain future operations in times of crisis. China Resources Power is classified as a ‘rhino’- a type of company that has achieved moderate revenue or earnings growth. Investors who are looking for a company with a good track record and a steady performance may be interested in such a company. It is important to note that China Resources Power is not necessarily a high-growth company, so investors looking for high returns may want to look elsewhere. In addition, investors should also consider the company’s risk profile before investing. China Resources Power has a moderate health score, so it is not as safe as some other companies. However, given its long-term potential, it could still be a good investment for those who are willing to take on some risk. More…
VI Peers
All four companies are committed to providing clean and reliable energy for China’s population, and are continuing to develop new technologies and expand their operations to meet the growing demand for electricity.
– CGN Power Co Ltd ($SEHK:01816)
CGN Power Co Ltd is a Chinese state-owned energy company that specializes in the development, construction, operation and management of nuclear power plants. As of 2022, the company has a market capitalization of 140.89 billion and a Return on Equity (ROE) of 15.81%. This market cap reflects the company’s success in establishing itself as a major player in the nuclear energy industry. The high ROE indicates that the company is efficiently utilizing its resources to generate profits.
– China Longyuan Power Group Corp Ltd ($SZSE:001289)
Longyuan Power Group Corp Ltd is a Chinese electricity producer and energy company. It is a subsidiary of China Energy Investment Corporation, the largest power producer in the world. The company has a market cap of 123.9B as of 2022 and a Return on Equity (ROE) of 10.54%. Longyuan Power Group Corp Ltd is one of the largest power producers in China, with over 60 power plants across the country. It operates in the areas of wind power, hydro-power, nuclear power, thermal power and other renewable energy sources. The company also provides energy storage solutions, as well as energy trading services. As an energy producer, Longyuan Power Group Corp Ltd is committed to sustainable development and environmental protection.
– China Datang Corp Renewable Power Co Ltd ($SEHK:01798)
Datang Corp Renewable Power Co Ltd is a Chinese company that specializes in renewable energy production and distribution. The company has a market cap of 15.93 billion as of 2022, which is a measure of the company’s total value on the stock market. In addition, the company’s Return on Equity (ROE) stands at 11.07%. This indicates that for every dollar invested in Datang Corp Renewable Power Co Ltd, 11.07 cents are earned in profit. This strong performance has allowed the company to continue to grow and expand its operations.
Summary
China Resources Power Holdings (CRPH) is a Hong Kong-based holding company that operates in the power generation, distribution and retail business. The company has come under increased scrutiny due to its high debt load, which has led to a decline in its stock price. There is currently a lot of negative press coverage surrounding the company, with investors concerned about its ability to manage its debt and profitability.
Despite this, CRPH remains one of the largest power companies in the region and has a strong presence in Hong Kong, Macau and mainland China. Investors are advised to conduct thorough research before investing in CRPH, as the company’s financial health is uncertain.
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