| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 23.23 | 178 |
| Intrinsic value (DCF) | 3.64 | -57 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 7.26 | -13 |
Guangxi Guiguan Electric Power Co., Ltd. is a prominent Chinese electric utility company specializing in power generation with a diverse energy portfolio. Founded in 1992 and headquartered in Nanning, China, the company operates as a subsidiary of state-owned China Datang Group Co., Ltd. With an impressive installed capacity of 11.839 million kilowatts, Guiguan Electric Power demonstrates a strategic focus on renewable energy, with hydropower constituting 10.227 million kilowatts (86.4% of total capacity), complemented by 1.33 million kilowatts of thermal power and 281,500 kilowatts of wind power generation. As a key player in China's regulated electric utility sector, the company contributes significantly to regional energy security and China's transition toward cleaner energy sources. Operating in the essential utilities sector, Guiguan Electric Power serves the growing energy demands of the Guangxi region while aligning with national carbon neutrality goals through its substantial renewable energy investments.
Guangxi Guiguan Electric Power presents a mixed investment profile with several notable strengths and risks. The company's strong renewable energy focus (86% hydropower) positions it well for China's energy transition and provides cost advantages against pure thermal power producers. With solid profitability (CNY 2.28 billion net income) and robust operating cash flow (CNY 5.61 billion), the company demonstrates operational efficiency. However, investors should note the significant debt burden (CNY 20.73 billion total debt) and the regulated nature of China's electricity market, which may limit pricing flexibility. The negative beta (-0.044) suggests defensive characteristics, potentially providing portfolio diversification benefits during market downturns. The attractive dividend yield (approximately 3.3% based on current data) adds income appeal, but regulatory changes and hydrological risks affecting hydropower generation remain key considerations for potential investors.
Guangxi Guiguan Electric Power occupies a strategic position within China's utility sector, leveraging its predominantly hydropower portfolio for competitive advantage. The company's 86% renewable energy mix provides significant operational cost advantages over thermal-heavy competitors, particularly as carbon pricing mechanisms evolve in China. As a subsidiary of China Datang Group, one of China's Big Five power generators, Guiguan benefits from parental support in financing, technology transfer, and regulatory relationships. Its geographical concentration in Guangxi province offers regional dominance but also creates concentration risk. The company's competitive positioning is strengthened by its scale (11.84 GW capacity) and the relatively stable nature of hydropower generation compared to intermittent renewables. However, it faces competition from other state-owned utilities expanding their renewable portfolios and increasingly from independent power producers. The regulated pricing environment in China's electricity market limits differentiation opportunities, making operational efficiency and cost management critical competitive factors. Guiguan's debt levels, while manageable, are higher than some peers, potentially limiting financial flexibility for future expansion compared to better-capitalized competitors.