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Huaneng Lancang River Hydropower Inc
SSE:600025

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Huaneng Lancang River Hydropower Inc
SSE:600025
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Price: 9.6 CNY -0.72% Market Closed
Market Cap: ¥178.9B

EV/GP

19.7
Current
1%
Cheaper
vs 3-y average of 20

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
19.7
=
Enterprise Value
¥264.4B
/
Gross Profit
¥13.8B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
19.7
=
Enterprise Value
¥264.4B
/
Gross Profit
¥13.8B

Valuation Scenarios

Huaneng Lancang River Hydropower Inc is trading below its 3-year average

If EV/GP returns to its 3-Year Average (20), the stock would be worth ¥9.74 (1% upside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-31%
Maximum Upside
+1%
Average Downside
16%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 19.7 ¥9.6
0%
3-Year Average 20 ¥9.74
+1%
5-Year Average 19.1 ¥9.27
-3%
Industry Average 13.6 ¥6.64
-31%
Country Average 13.6 ¥6.6
-31%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close

Market Distribution

In line with most companies in China
Percentile
64th
Based on 6 967 companies
64th percentile
19.7
Low
0 — 8
Typical Range
8 — 23.3
High
23.3 —
Distribution Statistics
China
Min 0
30th Percentile 8
Median 13.6
70th Percentile 23.3
Max 17 898 541.1

Huaneng Lancang River Hydropower Inc
Glance View

Market Cap
178.9B CNY
Industry
Utilities

Amid the mountainous landscapes of southwestern China, Huaneng Lancang River Hydropower Inc. harnesses the raw, untamed energy of the Lancang River, known internationally as the Mekong. Born from a vision of renewable energy and resource utilization, the company plays a pivotal role in China's quest for sustainable power sources. By strategically placing a series of dams along this mighty river, Huaneng Lancang transforms the river's vigorous flow into a stable and reliable electricity supply. These operations not only manage the water resource efficiently but also produce significant hydroelectric power, which is then fed into China's extensive power grid, serving millions of homes and industries across the nation. The business model of Huaneng Lancang is a testament to the intricate balance between environmental stewardship and energy demands. By generating electricity through hydropower, the company significantly reduces reliance on fossil fuels, thus cutting down greenhouse gas emissions. Revenue streams are primarily derived from the sale of electricity, generated with minimal operational costs, given the natural replenishment of river water. The operational efficiencies and scale it manages, alongside government incentives for clean energy production, bolster its financial performance. This allows the company not just to maintain profitable operations but also to contribute significantly to the global efforts against climate change, positioning itself as a cornerstone of China's renewable energy infrastructure.

Intrinsic Value
8.99 CNY
Overvaluation 6%
Intrinsic Value
Price ¥9.6
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