| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 19.19 | 367 |
| Intrinsic value (DCF) | 1.97 | -52 |
| Graham-Dodd Method | 0.60 | -86 |
| Graham Formula | 4.23 | 3 |
China Three Gorges Renewables (Group) Co., Ltd. is a leading renewable energy power generation company based in Beijing, China, operating under the massive China Three Gorges Corporation umbrella. Founded in 1985 and formerly known as China Three Gorges New Energy, the company specializes in generating electricity through wind, solar, and hydropower assets across China. As one of the country's largest renewable energy developers, CTGR plays a critical role in China's ambitious energy transition goals and carbon neutrality commitments. The company engages in comprehensive renewable energy operations including project investment, development, construction, and technical consulting services. With a diversified portfolio across multiple renewable technologies, CTGR leverages its parent company's extensive experience in large-scale hydropower to expand into wind and solar projects. The company's strategic positioning within China's state-owned energy sector provides unique advantages in securing projects, financing, and grid connections, making it a key player in the nation's clean energy infrastructure development and a bellwether for China's renewable utilities sector.
China Three Gorges Renewables presents a compelling investment case as a pure-play renewable energy operator benefiting from China's massive clean energy transition. The company demonstrates strong operational performance with CNY 29.7 billion in revenue and CNY 6.1 billion net income, though investors should note the significant debt load of CNY 157.6 billion funding its aggressive expansion. The low beta of 0.197 suggests defensive characteristics relative to broader markets, while the dividend yield provides income support. Key investment attractions include the company's strategic position within China's state-owned energy complex, diversified renewable portfolio across hydro, wind and solar, and alignment with national policy priorities. However, risks include exposure to regulatory changes in feed-in tariffs, grid connection challenges, and the capital-intensive nature of renewable development requiring continued debt financing. The company's negative free cash flow due to substantial capital expenditures highlights its growth-focused strategy rather than near-term cash generation.
China Three Gorges Renewables enjoys several competitive advantages stemming from its position within the China Three Gorges Corporation ecosystem. The company benefits from unparalleled scale and resources, with access to low-cost capital through its state-owned enterprise status and established relationships with Chinese policy banks. This financial advantage allows CTGR to undertake massive projects that smaller competitors cannot finance. The company's diversified renewable portfolio across hydro, wind and solar provides operational stability and reduces technology-specific risks. Its deep expertise in hydropower, inherited from its parent company's experience with the Three Gorges Dam, provides a foundation for complex project management that transfers well to other renewable technologies. However, CTGR faces intensifying competition from other state-owned power giants and increasingly capable private renewable developers. The company's competitive positioning is strengthened by its grid connections and power dispatch priorities, often receiving favorable treatment due to its state ownership. While CTGR dominates in certain regional markets, it must compete nationally with other power giants who are similarly scaling their renewable portfolios. The company's technical consulting services and project development capabilities provide additional revenue streams that pure power generators lack, creating a more integrated business model. Its main challenges include improving efficiency metrics to compete with more agile private operators and managing the integration of intermittent renewable sources into its primarily hydro-based system.