Huaneng Lancang River Hydropower Inc. Financial Update

Huaneng Lancang River Hydropower Inc., a utility company based in Kunming, China, specializes in hydropower generation services. The company is listed on the Shanghai Stock Exchange and operates within the Independent Power and Renewable Electricity Producers sector. As of May 25, 2025, the company’s close price was 10.03 CNH, with a market capitalization of 181,980,000,000 CNH. The 52-week high was recorded at 12.5 on October 7, 2024, and the 52-week low was 8.46 on March 4, 2025. The price-to-earnings ratio stands at 21.51.

Recent Developments

On May 27, 2025, two significant announcements were made by Huaneng Lancang River Hydropower Inc. regarding their 2024 annual shareholder meeting. The first announcement was the legal opinion document, and the second was the resolution announcement. These documents are available on the Shanghai Stock Exchange’s official website.

Market Insights

The clean energy generation market is experiencing substantial growth, with green power ETFs (159625) seeing significant increases in scale over the past three months. As of May 26, 2025, the National Green Power Index rose by 0.40%, with key component stocks such as Xiaocheng Technology and Electric Power Investment seeing increases of 3.59% and 3.29%, respectively. The green power ETF itself rose by 0.53%.

In terms of liquidity, the green power ETF had an intraday turnover of 2.21% and a transaction volume of 7,578,300 CNH. Over the past month, the average daily transaction volume was 2,119,200 CNH. The ETF’s scale increased by 7,650,560 CNH over the past three months, marking a significant growth and leading in new scale among comparable funds. Shareholder growth was also notable, with an increase of 5,800,000 shares, again leading among comparable funds.

From a valuation perspective, the green power ETF’s tracked National Green Power Index has a trailing twelve-month price-to-earnings ratio of 18.88, placing it in the lower 17.58% of the past three years, indicating a historically low valuation.

As of April 30, 2025, the top ten weighted stocks in the National Green Power Index included Longyang Power, China National Nuclear Corporation, Three Gorges Energy, State Power Investment, Sichuan Provincial Investment, China Guangdong Nuclear Power, Huaneng International, Huaneng Lancang River Hydropower, State Power Investment, and Shenergy Group, collectively accounting for 58.04% of the index.

Industry Outlook

The National Development and Reform Commission recently approved five nuclear power projects, totaling 10 new units, with eight utilizing China’s domestically developed third-generation nuclear technology, “Hualong One.” This decision exceeds expectations in both the number of units and timing, suggesting that nuclear power could become a new infrastructure pillar, driven by autonomous control logic and AI demand.

Industry experts believe that the clean energy generation market has vast potential, especially under the carbon neutrality backdrop. With the overall expansion of national electricity consumption and the increasing share of wind and solar power, green power is poised for significant growth. As the business model shifts towards new energy generation and domestic electricity market reforms deepen, power plants are experiencing important changes in both cost and revenue structures. The long-term investment and configuration value of the green power sector warrants attention.

Investors can engage with the green power market through the corresponding green power ETF-linked fund (017057) to capitalize on these opportunities. (Source: Jiemian News)