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Huaneng Lancang River Hydropower Inc (600025) Fair Value & Analysis

Utilities · CN · Market cap 183B CNY

HL Huaneng Lancang River Hydropower Inc 600025 · SHG
Price¥9.61
Fair Value¥5.57
Upside-42.0%
Quality51/100
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Expensive Growth
Highly profitable · 31.7% net margin
Moderate debt · generates free cash flow
2.13% dividend yield
Mixed vs. peers (6/14)
Wide moat 69/100
Evidence: High Range ¥2.83 – ¥7.71 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated yesterday

Share price −2.0% over the past month.

A solid business, but screening 42% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (¥7.71). The favourable scenario is already priced in.
  • The model range is unusually wide (¥2.83 to ¥7.71). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

¥11.73 ¥3.90 Fair Value ¥5.57 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ¥3.90 – ¥11.73 · fair‑value band ¥2.83 – ¥7.71 · the ¥9.61 price screens above the ¥5.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Huaneng Lancang River Hydropower Inc (600025) currently trades at ¥9.61, while our model-based Fair Value estimate is ¥5.57, implying the stock looks roughly 42.0% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Huaneng Lancang River Hydropower Inc generated revenue of 27.0B CNY at a net margin of 31.7%. Revenue grew 7.0% year over year. It earns a return on equity of 10.7%. Net debt stands at 100B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥2.83 (bear case) to ¥7.71 (bull case); at ¥9.61, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 10% below its 52-week high and 8% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -11% fair-value upside, at -42%, 600025 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ¥0.5900 80
Residual Income ¥3.94 ¥4.38 ¥6.33 76
Rev-Margin DCF ¥1.65 74
All 24 models by family
DCF Models
FCF DCF ¥0.9800 38
5Y Revenue Exit ¥1.95 39
5Y EBITDA Exit ¥0.9500 ¥6.52 ¥13.63 41
5Y P/E Exit ¥3.86 ¥8.73 38
10Y Revenue Exit ¥1.68 36
10Y EBITDA Exit ¥4.21 ¥11.46 37
10Y P/E Exit ¥2.26 ¥7.35 35
Earnings-Based
Graham-Dodd ¥3.10 ¥14.38 ¥19.75 54
Lynch FV ¥3.79 ¥5.41 ¥7.04 50
PEG = 1.0 ¥3.79 ¥5.41 ¥7.04 46
EPV ¥1.20 ¥2.20 ¥3.07 59
Dividend Discount
Gordon GGM ¥3.44 ¥7.15 ¥11.35 70
DDM Multi-Stage ¥3.44 ¥6.03 ¥7.51 61
Multiples
P/E Multiple ¥6.16 ¥8.22 ¥10.27 63
P/S Multiple ¥2.68 ¥3.57 ¥4.46 58
P/B Multiple ¥5.82 ¥7.76 ¥9.70 55
EV/EBIT ¥3.16 ¥5.81 ¥8.46 53
EV/EBITDA ¥3.44 ¥6.18 ¥8.92 54
Asset-Based
NCAV (Graham) ¥2.20 ¥2.95 ¥4.40 50
Growth DCF
Growth DCF ¥0.5900 80
Rev-Margin DCF ¥1.65 74
Economic Profit
Residual Income ¥3.94 ¥4.38 ¥6.33 76
ROIC Compounder ¥1.20 ¥2.20 ¥3.07 72
Growth Earnings
Growth-Adj P/E ¥5.57 ¥7.96 ¥10.35 68

Widest divergence: Growth Earnings (¥7.96) versus Economic Profit (¥2.20). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 27.0B CNY
Revenue growth (YoY) +7.0%
Net margin 31.7%
Return on equity 10.7%
Free cash flow 2.6B CNY FY2025
P/E ratio 21.4
More key figures
Operating margin 45.1%
EPS (TTM) ¥0.4500
Dividend yield 2.1%
Net debt 100B CNY FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 48 · Market factors (momentum, volatility) 62

Profitability 39
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 36
Disciplined investing over empire-building
Low Volatility 97
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 47
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Huaneng Lancang River Hydropower Inc. engages in the development, construction, operation, and management of hydropower and new energy power generation projects. It is also involved in the solar energy and wind power generation; and production and supply of heat. The company was founded in 2001 and is based in Kunming, China.

Full company description

Huaneng Lancang River Hydropower Inc. engages in the development, construction, operation, and management of hydropower and new energy power generation projects. It is also involved in the solar energy and wind power generation; and production and supply of heat. The company was founded in 2001 and is based in Kunming, China. Huaneng Lancang River Hydropower Inc. operates as a subsidiary of China Huaneng Group Co., Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Huaneng Lancang River Hydropower Inc reported revenue of ¥26.6B in FY2025 versus ¥20.2B in FY2021, a compound +7.1%/yr. Reported net income was ¥8.5B in FY2025, compounding +9.9%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
26.6B CNY
Latest YoY
+6.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.7%
Avg. growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.2%
Revenue +7.1%/yr
FY21 ¥20.2B
FY22 ¥23.6B
FY23 ¥23.5B
FY24 ¥24.9B
FY25 ¥26.6B
Net income +9.9%/yr
FY21 ¥5.8B
FY22 ¥7.2B
FY23 ¥7.6B
FY24 ¥8.3B
FY25 ¥8.5B
Character of growth · EPS growth decomposed (2013-2024) +7.4 % p.a.
Revenue per share +3.9 pp

of which total revenue +5.8 pp · buybacks/dilution −1.9 pp

EBIT margin +5.2 pp
Tax rate −0.4 pp
Residual (interest, one-offs) −1.4 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

600025 screens 42% overvalued. Compare with China Yangtze Power Co →

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Cite: Fair Value Calculator (2026). "Huaneng Lancang River Hydropower Inc Fair Value". https://www.fairvalue-calculator.com/stock/600025

Peer Group

Utilities - Renewable · 220 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Above median
Fair Value upside −42% · Below median
Return on equity (TTM) 11% · Top 25%
Return on assets 4% · Top 25%
Net margin (TTM) 32% · Top 25%
Operating margin (TTM) 45% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 2.1% · Below median
Debt / equity 1.13× · Higher than median

Valuation Multiples vs Utilities - Renewable median · lower = cheaper

P/E (TTM) 21.4× · Pricier than median
P/B 2.23× · Pricier than median
P/S (TTM) 6.78× · Pricier than 75% of peers
P/FCF 10.5× · Pricier than 75% of peers
EV/EBITDA 13.2× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 10
FUTURE 35 · sector 0
PAST 43 · sector 11
HEALTH 43 · sector 68
DIVIDEND 43 · sector 50

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Renewable stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Yangtze Power Co 600900 ¥28.02 ¥25.13 -10%
Ørsted A/S ORSTED kr 148.25 kr 31.40 -79%
Adani Green Energy Limited ADANIGREEN ₹1,319 ₹169.61 -87%
AXIA Energia SA AXIAP $10.74 $9.54 -11%
VERBUND AG OEWA €56.80 €66.19 +17%
BEP BEP $34.23 $70.40 +106%
BEPUN BEPUN C$44.56 C$10.15 -77%
China Longyuan Power Group 001289 ¥15.92 ¥7.55 -53%
SDIC Power Holdings 600886 ¥13.95 ¥16.63 +19%
China Three Gorges Renewables (Group) Co 600905 ¥3.77 ¥2.40 -36%

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Frequently asked questions

Is Huaneng Lancang River Hydropower Inc (600025) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥5.57 versus a price of ¥9.61, about −42% (overvalued).
What is the fair value of 600025?
Our model-based fair value for Huaneng Lancang River Hydropower Inc is ¥5.57 (as of Aug 13, 2026), built from audited fundamentals. The current price is ¥9.61.
What is the quality score of 600025?
Huaneng Lancang River Hydropower Inc has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Huaneng Lancang River Hydropower Inc (600025)?
Huaneng Lancang River Hydropower Inc reported trailing-twelve-month revenue of about 27.0B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 600025?
The net profit margin of Huaneng Lancang River Hydropower Inc is about 31.7%, meaning it keeps roughly 31.7% of revenue as net income. Based on the latest reported figures.
Does Huaneng Lancang River Hydropower Inc pay a dividend?
Huaneng Lancang River Hydropower Inc currently shows a dividend yield of about 2.05% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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