华润电力股票讨论区

The declining trend in ROCE is concerning. Despite reinvestment for long-term growth, stagnant sales over the last year question the effectiveness of these investments. The stock's performance may reflect investor anticipation of this trend.

Despite positive 9.8% compound EPS growth in three years, the 19% average annual increase in share price indicates market optimism. Investors are urged to consider total shareholder returns and warning signs linked with China Resources Power Holdings.

We recommend taking profits on China Power utilities post >5% outperformance YTD (IPPs: flat, HSCEI: -5%). We believe tailwinds from lower coal prices are likely priced-in with strong rebound in 1H23 earnings. Yet, margin may be at risk on potential tariff cut next year, as the IPPs may reset the power contracts with lower tariff from 1Q24 amid a sluggish economy and subdued coal prices. Also, utilization hou...

Key ideas:
1. Since the beginning of the year, more than 400 MW of wind power has been connected to the grid, and about 300 MW of wind power installed capacity has been completed.
2. We estimate that CR Power's fuel costs will decline by an average of 6% annually in 2023, and the thermal power segment will turn a loss to a profit of about HK $1 billion for the full year.
3. Valu...

Hong Kong equities' performance was further hampered by headwinds emerged between the end of Chinese New Year and late March, including strengthening expectations for monetary tightening in overseas countries and concerns over the liquidity risks of European and US banking systems, CITIC Securities illustrated in a report.
The broker believed 2Q23 will be the best quarter for Hong Kong sto...