| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 13.07 | 246 |
| Intrinsic value (DCF) | 2.53 | -33 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 2.17 | -43 |
Datang International Power Generation Co., Ltd. stands as a pivotal force in China's energy landscape, operating as a comprehensive power generation enterprise with diversified energy assets. As a subsidiary of state-owned China Datang Corporation, the company manages an impressive installed capacity of 68,770.03 MW across multiple energy sources including coal-fired, thermal, hydro, wind, nuclear, and solar power generation. Headquartered in Beijing, Datang International plays a critical role in China's utilities sector, serving the massive energy demands of the world's second-largest economy. Beyond core power generation, the company maintains an integrated business model encompassing heat supply, coal mining and trading, aluminum smelting, and power-related technical services. This vertically integrated approach positions Datang International as a key infrastructure provider supporting China's industrial and residential energy needs. The company's strategic diversification into renewable energy sources aligns with China's ambitious carbon neutrality goals while maintaining reliable baseload power through conventional sources. As China continues its economic development and urbanization, Datang International's scale and government backing provide significant advantages in the competitive independent power producer market.
Datang International Power Generation presents a mixed investment case characterized by stable utility operations but significant financial challenges. The company's 2024 financials reveal substantial leverage with total debt of CNY 159.5 billion against cash reserves of only CNY 7.7 billion, creating interest coverage concerns. While revenue of CNY 123.5 billion demonstrates scale, net income of CNY 4.5 billion translates to thin margins of approximately 3.6%, reflecting the capital-intensive nature of power generation. The positive operating cash flow of CNY 26.1 billion is overshadowed by heavy capital expenditures of CNY 30.5 billion, indicating ongoing investment requirements. The modest dividend yield and low beta of 0.548 suggest defensive characteristics, but investors must weigh the company's strategic importance in China's energy security against its leveraged balance sheet and exposure to regulatory changes in electricity pricing and environmental compliance.
Datang International Power Generation operates in a highly competitive Chinese power market dominated by state-owned enterprises with similar scale and resource advantages. The company's competitive positioning is defined by its diversified generation portfolio spanning conventional and renewable sources, providing operational flexibility amid China's energy transition. However, its competitive advantage is tempered by significant financial constraints compared to better-capitalized peers. The company's leverage ratio and thin profit margins suggest operational efficiency challenges relative to industry leaders. Datang's affiliation with China Datang Corporation provides access to government contracts and policy support, but this state-backing comes with obligations to prioritize national energy security over pure profitability. The competitive landscape is characterized by intense price competition in power generation, regulatory control over electricity tariffs, and mounting pressure to transition toward cleaner energy sources. Datang's extensive coal-fired capacity represents both a competitive advantage in providing reliable baseload power and a strategic vulnerability as China accelerates its decarbonization agenda. The company's ongoing investments in renewable energy indicate recognition of this transition, but the pace and capital efficiency of this shift will be critical determinants of long-term competitiveness against nimbler renewable-focused competitors and better-financed state-owned rivals.