China Longyuan Power Group (0916.HK)
Utilities · HKEX · Hong Kong
Fundamentals
Valuation and ratings
China Longyuan Power Group trades at HK$5.44, which is 111% below the HK$11.46 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 54 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 8.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About China Longyuan Power Group
China Longyuan Power Group Corporation Limited, together with its subsidiaries, engages in new energy power generation in the Chinese Mainland, Canada, South Africa, and Ukraine. China Longyuan Power Group Corporation Limited was formerly known as China Longyuan Electric Power Group Corporation and changed its name to China Longyuan Power Group Corporation Limited in July 2009. The company was founded in 1993 and is based in Beijing, China. China Longyuan Power Group Corporation Limited is a subsidiary of Chnenergy Investment Group Co.,LTD.
0916.HK passes 4 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is China Longyuan Power Group (0916.HK) undervalued?
Against our discounted cash flow estimate of HK$11.46, 0916.HK at HK$5.44 is 111% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is 0916.HK's P/E ratio?
0916.HK trades at 8.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.