CGN Power Co Ltd Shs -H- Unitary 144A/Reg S

01816: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$7.92	Tglq	Dsyjpcq

CGN Power Earnings: Slight Miss in Otherwise Solid Power Generation Growth; Shares Undervalued

Chokwai Lee

Oct 26, 2023

We maintain our fair value estimate of HKD 2.24 for CGN Power, despite a slight miss in its third-quarter 2023 results. Our earnings forecasts are largely unchanged, and we think the shares are attractive currently, trading at around 0.7 times price/book with about 6% dividend yield for 2024. We estimate CGN’s net profit to grow at a five-year CAGR of 7.2% over our explicit forecast period, underpinned by its stable nuclear power operations.

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