Company Reports

China Resources Power, or CR Power, is one of China's leading independent power producers, with high-efficiency power generation assets and an established operation track record. As of end-2025, the firm had a total attributable operational generation capacity of about 89.6 gigawatts, or GW. Thermal power plants accounted for 50.0% of its total capacity, with the remainder from wind, photovoltaic and hydro power. Given the significant proportion of thermal power plants, CR Power's profitability is subject to underlying coal price swings, thus increasing earnings volatility.

China Resources Power's first-half net profit fell 16% year over year, as a 31% decline in renewable core profit more than offset a 16% rise in thermal power core profit.

China Resources Power, or CR Power, is one of China's leading independent power producers, with high efficiency power generation assets and an established operation track record. As of end-2025, the firm had a total attributable operational generation capacity of about 89.6 gigawatts, or GW. Thermal power plants accounted for 50.0% of its total capacity, with the remainder from wind, photovoltaic and hydro power. Given the significant proportion of thermal power plants, CR Power's profitability is subject to underlying coal price swings, thus increasing earnings volatility.

China power utilities under our coverage have fallen more than 15% on average year to date, reversing a 3% gain in the first quarter, when optimism over artificial intelligence-driven data center power demand boosted sentiment.

China Resources Power's 2025 net profit rose 1% year on year, as a strong recovery in the thermal power business offset weakness in the renewable energy segment, which was largely driven by lower tariffs. Dividend per share of HKD 1.13 represented a payout ratio of about 40%.

China Resources Power, or CR Power, is one of China's leading independent power producers, with high efficiency power generation assets and an established operation track record. As of end-2025, the firm had a total attributable operational generation capacity of about 89.6 gigawatts, or GW. Thermal power plants accounted for 50.0% of its total capacity, with the remainder from wind, photovoltaic and hydro power. Given the significant proportion of thermal power plants, CR Power's profitability is subject to underlying coal price swings, thus increasing earnings volatility.

Share prices of the China power utilities under our coverage have fallen by about 3% on average since late October, following the release of third-quarter results. This contrasts with an average 6% rise in the third quarter due to accelerated subsidy collections.

China Resources Power, or CR Power, is one of China's leading independent power producers, with high efficiency power generation assets and an established operation track record. As of end-2024, the firm had a total attributable operational generation capacity of about 72.4 gigawatts, or GW. Thermal power plants accounted for 52.8% of its total capacity, with the remainder from wind, photovoltaic and hydro power. Given the significant proportion of thermal power plants, CR Power's profitability is subject to underlying coal price swings, thus increasing earnings volatility.

China Resources Power's first-half 2025 net profit attributable to owners of the company fell 16% year on year, mainly due to lower average tariffs, impairment charges, and the absence of one-off gains. Core profit remained flat compared with the previous year.

China Resources Power’s first-half net generation volume rose 3.8% year on year, mainly driven by increased output from renewable plants. This was partly offset by a 1.4% drop in thermal power generation.

The share prices of Chinese power utilities under our coverage retreated by approximately 9% on average on April 7 due to weakened market sentiment amid uncertainties surrounding President Donald Trump's tariff policies.

China Resources Power's 2024 net profit grew 31% year on year, aided by a recovery in the thermal power business, lower impairment charges, and an HKD 876 million gain on the acquisition of a subsidiary. Dividend per share of HKD 1.19 represented a payout ratio of 40%.

China Resources Power, or CR Power, is one of China's leading independent power producers, with high efficiency power generation assets and an established operation track record. As of end-2024, the firm had a total attributable operational generation capacity of about 72.4 gigawatts, or GW. Thermal power plants accounted for 52.8% of its total capacity, with the remainder from wind, photovoltaic and hydro power. Given the significant proportion of thermal power plants, CR Power's profitability is subject to underlying coal price swings, thus increasing earnings volatility.

After a short rally following China's stimulus announcement on Sept. 24, share prices of our China power utilities coverage retreated by about 20% on average since early October, as the market is likely disappointed with the lack of further government supportive measures.

China Resources Power, or CR Power, is one of China's leading independent power producers, with high efficiency power generation assets and an established operation track record. As of end-2023, the firm had a total attributable operational generation capacity of about 59.8 gigawatts, or GW. Thermal power plants accounted for 62.2% of its total capacity, with the remainder from wind, photovoltaic and hydro power. Given the significant proportion of thermal power plants, CR Power's profitability is subject to underlying coal price swings, thus increasing earnings volatility.

China Resources Power’s, or CR Power’s 39% year-on-year growth in first-half net profit to HKD 9.36 billion beat our forecast largely due to an acquisition gain of HKD 876 million and improved performance from the thermal power segment, which posted core earnings of HKD 2.71 billion, up from HKD 726 million a year ago. We raise our 2024-28 earnings estimates by an average of 7% to account for lower coal prices and our latest foreign exchange assumptions. Consequently, our fair value estimate is increased to HKD 26.50 from HKD 23.00. We think CR Power is attractive, underpinned by a 2024 dividend yield of more than 5%. We believe the pending listing of its renewable energy segment could be a positive, but we don’t expect it to happen in the near term as management is still waiting for more conducive equity market conditions.

China Resources Power, or CR Power, is one of China's leading independent power producers, with high efficiency power generation assets and an established operation track record. As of end-2023, the firm had a total attributable operational generation capacity of about 59.8 gigawatts, or GW. Thermal power plants accounted for 62.2% of its total capacity, with the remainder from wind, photovoltaic and hydro power. Given the significant proportion of thermal power plants, CR Power's profitability is subject to underlying coal price swings, thus increasing earnings volatility.

The year-to-date share price performance of China utilities under our coverage have generally staged a strong recovery since May, given improving sentiment in the Hong Kong equity market and their cheap valuations. In addition, the market is expecting more positive policy measures from the upcoming third plenary session in July. We have seen the National Energy Administration calling for increased investment in the national grid recently to avoid curtailment risk on the back of the significant rise in renewable energy capacity. While we are positive about this in the longer term, we caution that the concerns about slow subsidy settlements and falling tariffs will remain in the near term.

China Resources Power, or CR Power, is one of China's leading independent power producers, with high efficiency power generation assets and an established operation track record. As of end-2023, the firm had a total attributable operational generation capacity of about 59.8 gigawatts, or GW. Thermal power plants accounted for 62.2% of its total capacity, with the remainder from wind, photovoltaic and hydro power. Given the significant proportion of thermal power plants, CR Power's profitability is subject to underlying coal price swings, thus increasing earnings volatility.

China Resources Power’s, or CR Power’s, 2023 net profit of HKD 11.0 billion trails our estimate, mainly due to asset impairment losses of HKD 2.7 billion, but key generation numbers were in line with our expectations. We cut our fair value estimate to HKD 23 per share from HKD 25 to factor in lower renewable tariffs and higher near-term capital expenditure, or capex. Nonetheless, we think CR Power is undervalued, with continued improvement in the thermal power segment’s profitability and an estimated 2024 yield of more than 5%.