Debt LevelsHuaneng Power had net debt-equity ratio (after adjusting for perpetual bonds) of >330% in FY23, and it is expected to go up further as it expands its renewable power capacity.
Earnings RiskThere are downside risks on earnings, coming from declining electricity tariff of renewable power operation, higher cost of carbon emission from tightened quota distribution and tightened supply of coal.
Financial Performance9MFY24 attributable profit dropped 17% with Q3 profit declining >50%, below expectation.