| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 21.89 | 218 |
| Intrinsic value (DCF) | 22.25 | 223 |
| Graham-Dodd Method | 3.24 | -53 |
| Graham Formula | 16.88 | 145 |
GEPIC Energy Development Co., Ltd. (000791.SZ) is a prominent renewable energy utility company based in Lanzhou, China, operating as a subsidiary of Gansu Province Electric Power Investment Group Co., Ltd. Founded in 1997 and publicly traded on the Shenzhen Stock Exchange, GEPIC specializes in the development, investment, and operation of clean energy assets across China. The company maintains a diversified renewable portfolio comprising 21 hydropower plants (1,698,900 kW), 4 wind power facilities (818,100 kW), and 3 photovoltaic plants (136,000 kW), positioning it as a significant contributor to China's energy transition. Operating in the utilities sector with a focus on renewable generation, GEPIC leverages its provincial government backing to secure strategic projects and navigate China's evolving energy policy landscape. The company's integrated approach to renewable energy development, combined with its consulting services for production and operation, creates a comprehensive business model aligned with national carbon neutrality goals. As China accelerates its shift toward clean energy, GEPIC stands to benefit from its established infrastructure and strategic positioning within Gansu province's energy ecosystem.
GEPIC Energy Development presents a compelling investment case within China's renewable utilities sector, characterized by stable cash flows from diversified hydro, wind, and solar assets. The company demonstrates solid profitability with net income of CNY 1.64 billion on revenue of CNY 8.70 billion, translating to a healthy diluted EPS of CNY 0.53. Strong operating cash flow of CNY 3.91 billion supports dividend payments (CNY 0.18 per share) and ongoing capital expenditures. However, investors should note the substantial total debt of CNY 15.15 billion against cash reserves of CNY 2.40 billion, indicating significant leverage. The low beta of 0.426 suggests defensive characteristics relative to the broader market, potentially appealing to risk-averse investors seeking exposure to China's renewable energy transition. Key risks include regulatory changes in China's power sector, exposure to weather-dependent generation patterns, and the capital-intensive nature of renewable energy expansion.
GEPIC Energy Development competes in China's rapidly evolving renewable utilities market with several distinct advantages. Its primary competitive strength lies in its diversified generation portfolio across hydro, wind, and solar technologies, which mitigates technology-specific risks and provides stable revenue streams. As a subsidiary of Gansu Province Electric Power Investment Group, GEPIC benefits from provincial government support, facilitating project approvals and access to favorable financing. The company's substantial installed capacity of approximately 2.65 GW provides economies of scale in operations and maintenance. However, GEPIC faces intense competition from larger national players like China Three Gorges Renewables and China Longyuan Power, which possess greater financial resources and nationwide project portfolios. The company's regional concentration in Gansu province represents both a strength (deep local knowledge) and a limitation (geographic diversification constraints). GEPIC's competitive positioning is further enhanced by its operational expertise across multiple renewable technologies, though it must continuously invest in grid integration capabilities and energy storage solutions to maintain relevance as China's power market liberalizes. The company's ability to leverage its provincial relationships while expanding technologically will be critical for long-term competitiveness against both state-owned enterprises and emerging private renewable developers.