Huadian Energy Company (600726) Fair Value & Analysis
Utilities · CN · Market cap 50.0B CNY
Fair value as of: Aug 9, 2026
From 25 valuation models · updated yesterday
Fair value updated Aug 9, 2026, revised from ¥0.4800 to ¥3.23 (+572.9%) since Jul 11, 2026. Share price +7.1% over the past month.
Below-average quality, and screening another 49% overvalued on our models.
What matters now
- The price sits above even our optimistic bull case (¥4.04). The favourable scenario is already priced in.
- Weak quality (41/100) and above fair value at the same time, the margin of safety is missing on both counts.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 9, 2026.
How to read this chart
60‑month range ¥1.83 – ¥10.39 · fair‑value band ¥2.43 – ¥4.04 · the ¥6.32 price screens above the ¥3.23 fair value. Dashed = 300-day average. As of Aug 9, 2026.
Analysis
Huadian Energy Company (600726) currently trades at ¥6.32, while our model-based Fair Value estimate is ¥3.23, implying the stock looks roughly 48.9% overvalued today. The Quality Score stands at 41/100 (below-average 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: medium).
Over the trailing twelve months, Huadian Energy Company generated revenue of 16.5B CNY at a net margin of 2.0%. Revenue declined 2.9% year over year. It earns a return on equity of 14.1%. Net debt stands at 8.8B CNY. Fundamentals as of Aug 9, 2026
Our scenario range runs from ¥2.43 (bear case) to ¥4.04 (bull case); at ¥6.32, 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 42% below its 52-week high and 178% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -59% fair-value upside, at -49%, 600726 screens cheaper 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.
All 25 models by family
Widest divergence: DCF Models (¥2.73) versus Earnings-Based (¥0.2600). Highest evidence: Growth DCF (80).
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 9, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 39 · Market factors (momentum, volatility) 67
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
Huadian Energy Company Limited engages in the generation and sale of electric power in China. The company generates electric power through thermal sources, as well as provides heat services. It also involved in coal production and sales business. It has an installed capacity of 25.7693 million kilowatts of thermal power.
Full company description
Huadian Energy Company Limited engages in the generation and sale of electric power in China. The company generates electric power through thermal sources, as well as provides heat services. It also involved in coal production and sales business. It has an installed capacity of 25.7693 million kilowatts of thermal power. The company was formerly known as Heilongjiang Electric Power Co. Ltd. and changed its name to Huadian Energy Company Limited in July 2004. Huadian Energy Company Limited was founded in 1993 and is based in Harbin, China.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Huadian Energy Company reported revenue of ¥16.7B in FY2025 versus ¥18.9B in FY2021, a compound −3.1%/yr. Reported net income was ¥200M in FY2025.
600726 screens 49% overvalued. Compare with Constellation Energy Corporation →
Peer Group
Utilities - Independent Power Producers · 78 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.
Valuation Multiples vs Utilities - Independent Power Producers median · lower = cheaper
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: 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.
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 - Independent Power Producers stocks, each showing price versus our Fair Value estimate (as of Aug 9, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Constellation Energy Corporation CEG | $257.57 | $89.08 | -65% |
| Vistra Corp VST | $158.86 | $47.59 | -70% |
| Adani Power Limited ADANIPOWER | ₹218.45 | ₹75.57 | -65% |
| CGN Power Co 003816 | ¥3.88 | ¥3.13 | -19% |
| NRG Energy, Inc NRG | $137.90 | $56.02 | -59% |
| Gulf Development Public Company GULF | 67.50 THB | 40.44 THB | -40% |
| Adani Energy Solutions Limited ADANIENSOL | ₹1,730 | ₹342.02 | -80% |
| Talen Energy Corporation TLN | $372.37 | $44.67 | -88% |
| Datang International Power Generation Co 601991 | ¥5.80 | ¥4.95 | -15% |
| Power Assets Holdings 0006 | HK$58.45 | HK$31.90 | -45% |
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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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