China A-share · SSE · 600900
China Yangtze Power (600900) stock analysis: valuation and financials
电力、热力生产和供应业
¥29.45 +1.0% Price as of Oct 14, 2026
Wide-moat Yangtze hydro at 61.7% gross margin and 1.96x cash conversion, but 4.40x net debt/EBITDA, stalled 2.1% growth and a demanding price; base case implies 26.8% downside.
- Market cap
- ¥720.6B
- P/E
- 19.9x
- EV/Sales
- 11.4x
- FCF yield
- 6.1%
- 52-week range
- ¥24.73 – ¥29.49
Research as of Oct 14, 2026
Business quality scorecard
- Growth31
- Profitability67
- Cash flow100
- Balance sheet9
- Capital allocation54
- Innovation54
- Valuation75
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
China Yangtze Power sells regulated and market-traded hydroelectricity from the Yangtze cascade to grid and industrial buyers, and the domestic hydro segment is the profit engine at 87.7% of FY2025 revenue (CNY75.7B) with a 61.7% gross margin and 49.4% operating margin集团-wide.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | ¥55.6B | ¥68.9B | ¥78.1B | ¥84.5B | ¥86.2B |
| Revenue growth | -3.7% | +23.8% | +13.5% | +8.1% | +2.1% |
| Gross margin | 62.1% | 57.1% | 57.8% | 59.1% | 61.7% |
| Operating margin | 59.1% | 44.1% | 42.5% | 46.9% | 49.4% |
| Net income | ¥26.3B | ¥23.7B | ¥27.2B | ¥32.5B | ¥34.5B |
| Free cash flow | ¥32.3B | ¥31.0B | ¥52.3B | ¥45.0B | ¥42.1B |
| FCF margin | 58.0% | 45.0% | 67.0% | 53.3% | 48.8% |
Amounts in CNY · What is free cash flow?
Margins FY2025 gross margin 61.7% (+2.5pp yoy) and operating margin 49.4% (+2.5pp); TTM gross 62.4%, operating 51.4%, net 41.4%. Latest quarter Q2 FY2026 gross margin 59.9% vs 58.8% a year earlier. Main reason: cost of revenue fell 4.3% to 33.06B while revenue rose 2.1%.
- Cash flow HealthyOperating cash flow exceeds net income every year: FY2025 60.56B vs 34.50B, TTM 60.70B vs 36.20B; cash conversion 1.96x. Core hydropower earnings are almost fully cash-backed.
- Debt ElevatedNet debt 273.5B against EBITDA 62.13B gives 4.40x net debt/EBITDA, flagged high leverage; total debt 282.9B TTM versus cash of only 9.37B.
Balance sheet Leverage · High
- Cash & short-term investments
- ¥9.4B
- Total debt
- ¥282.9B
- Net debt
- ¥273.5B
- Net debt / EBITDA
- 4.4x
- Interest coverage
- 5.1x
- Current ratio
- 0.2x
As of Jun 30, 2026 · Amounts in CNY · How to read a balance sheet
Management and track record
- Management AdequateNet income rose from 26.3B CNY FY2020 to 34.5B FY2025 and revenue CAGR 5y is 8.3%; ROIC recovered to 7.07% from 5.14% in FY2022 but stays below FY2020's 10.2%.
Valuation range
Implied value per share · Price when researched: ¥29.45
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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