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

Utilities · CN · Market cap 183B CNY (≈ $27.3B) · ISIN CNE100002T71

What is Huaneng Lancang River Hydropower Inc Class A really worth?

HL Huaneng Lancang River Hydropower Inc Class A 600025 · SHG
Price¥9.76
Fair Value¥5.57
Upside−42.9%
Quality51/100

A solid business, but trading 75% above our fair value of ¥5.57.

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Strengths

Highly profitable · 31.7% net margin
Moderate debt · generates free cash flow
Wide moat 69/100

Risks

!Expensive Growth (revenue 5y +6.7 %/yr)
!Mixed vs. peers (6/14)

For context

·2.10% dividend yield
Evidence: High Range ¥2.83 – ¥7.71

Fair value as of: Aug 26, 2026

From 24 valuation models · updated 10 days ago

Share price +0.1% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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.

Price vs Fair Value (5 years)

¥11.73 ¥4.53 Fair Value ¥5.57 Mar 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 26, 2026.

How to read this chart

60‑month range ¥4.53 – ¥11.73 · fair‑value band ¥2.83 – ¥7.71 · the ¥9.76 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 26, 2026.

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Analysis

Huaneng Lancang River Hydropower Inc Class A (600025) currently trades at ¥9.76, while our model-based Fair Value estimate is ¥5.57, implying the stock looks roughly 75.2% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Utilities sector. Bull case: the Growth Earnings group reads highest at a median of ¥7.96 per share, and 1 of the 19 models we run sit above the ¥9.76 price. Bear case: the Economic Profit group reads lowest at ¥2.20, and 18 of the 19 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Huaneng Lancang River Hydropower Inc Class A 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 26, 2026

Our scenario range runs from ¥2.83 (bear case) to ¥7.71 (bull case); at ¥9.76, 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 8% below its 52-week high and 10% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at −10% fair-value upside, at −43%, 600025 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.1665 per share, which is 3.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF ¥0.9800 77
Residual Income ¥3.94 ¥4.38 ¥6.33 76
Growth DCF ¥0.5900 75
All 24 models by family
DCF Models
FCF DCF ¥0.9800 77
5Y Revenue Exit ¥1.95 69
5Y EBITDA Exit ¥0.9500 ¥6.52 ¥13.63 68
5Y P/E Exit ¥3.86 ¥8.73 68
10Y Revenue Exit ¥1.68 64
10Y EBITDA Exit ¥4.21 ¥11.46 65
10Y P/E Exit ¥2.26 ¥7.35 61
Earnings-Based
Graham-Dodd ¥3.10 ¥14.38 ¥19.75 64
Lynch FV ¥3.79 ¥5.41 ¥7.04 61
PEG = 1.0 ¥3.79 ¥5.41 ¥7.04 57
EPV ¥1.20 ¥2.20 ¥3.07 71
Dividend Discount
Gordon GGM ¥3.44 ¥7.15 ¥11.35 66
DDM Multi-Stage ¥3.44 ¥6.03 ¥7.51 66
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 63
EV/EBITDA ¥3.44 ¥6.18 ¥8.92 65
Asset-Based
NCAV (Graham) ¥2.20 ¥2.95 ¥4.40 54
Growth DCF
Growth DCF ¥0.5900 75
Rev-Margin DCF ¥1.65 69
Economic Profit
Residual Income ¥3.94 ¥4.38 ¥6.33 76
ROIC Compounder ¥1.20 ¥2.20 ¥3.07 70
Growth Earnings
Growth-Adj P/E ¥5.57 ¥7.96 ¥10.35 67

Widest divergence: Growth Earnings (¥7.96) versus Economic Profit (¥2.20). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 21.7
P/S ratio 6.94 P/E × margin
EPS (TTM) ¥0.4500 price ÷ EPS = P/E 21.7
Dividend yield 2.1% payout 45.6%
Net margin 32.0% FY2025
Return on equity 10.7% TTM
More key figures
Profitability
Return on assets (EBIT) 5.1% avg 5y
Operating margin 45.1% TTM
Growth
Revenue (TTM) 27.0B CNY TTM
Revenue growth (YoY) +7.0% 3y avg +4.1%
Balance sheet & cash flow
Free cash flow 2.6B CNY FY2025
Net debt 100B CNY FY2025 · ≈ 38.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 26, 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 44
Price trend over the last 3–12 months (market factor)
52W Momentum 53
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 Class A reported revenue of 26.6B CNY in FY2025 versus 20.2B CNY in FY2021, a compound +7.1%/yr. Reported net income was 8.5B CNY 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. revenue 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. revenue 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. revenue 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%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+10.3% (8.2 + 2.1)
Revenue +7.1%/yr
FY21 20.2B CNY
FY22 23.6B CNY
FY23 23.5B CNY
FY24 24.9B CNY
FY25 26.6B CNY
Net income +9.9%/yr
FY21 5.8B CNY
FY22 7.2B CNY
FY23 7.6B CNY
FY24 8.3B CNY
FY25 8.5B CNY
Character of growth · EPS growth decomposed (2013-2024) +7.4 % p.a.
Revenue per share +3.9 %

of which total revenue +5.8 % · buybacks/dilution −1.8 %

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

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

600025 screens 75% overvalued. Compare with China Yangtze Power Co →

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

Peer Group

Utilities - Renewable · 213 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 −43% · 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) 21.7× · 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

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 6
FUTURE35 · sector 0
PAST43 · sector 14
HEALTH43 · sector 68
DIVIDEND42 · sector 44

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

Similar stocks

10 more Utilities - Renewable stocks, each showing price versus our Fair Value estimate (as of Aug 26, 2026).

Stock Price Fair Value vs Fair Value
China Yangtze Power Co 600900 ¥27.96 ¥25.13 −10%
Ørsted A/S ORSTED kr 139.25 kr 31.40 −77%
Adani Green Energy Limited ADANIGREEN ₹1,319 ₹169.61 −87%
AXIA Energia SA AXIAP $10.74 $9.49 −12%
VERBUND AG OEWA €57.00 €66.19 +16%
BEP BEP $31.27 $70.40 +125%
BEPUN BEPUN C$45.05 C$42.83 −5%
Fortum Oyj FORTUM €19.80 €13.55 −32%
China Longyuan Power Group 001289 ¥15.92 ¥7.55 −53%
SDIC Power Holdings 600886 ¥13.95 ¥16.63 +19%

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Frequently asked questions

Is Huaneng Lancang River Hydropower Inc Class A (600025) overvalued or undervalued?
As of Aug 26, 2026, our model estimates a fair value of ¥5.57 versus a price of ¥9.76, about −43% upside (overvalued).
What is the fair value of 600025?
Our model-based fair value for Huaneng Lancang River Hydropower Inc Class A is ¥5.57 (as of Aug 26, 2026), built from audited fundamentals. The current price: ¥9.76.
What is the quality score of 600025?
Huaneng Lancang River Hydropower Inc Class A 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 Class A (600025)?
Huaneng Lancang River Hydropower Inc Class A reported trailing-twelve-month revenue of about 27.0B CNY (latest available figure, as of Aug 26, 2026).
What is the net profit margin of 600025?
The net profit margin of Huaneng Lancang River Hydropower Inc Class A 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 Class A pay a dividend?
Huaneng Lancang River Hydropower Inc Class A currently shows a dividend yield of about 2.10% relative to its recent price (as of Aug 26, 2026).
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