DebtHuaneng Power had a net debt-equity ratio of over 330% in FY23, which, although reduced from over 470% in FY22, is still very high and expected to increase further in the coming years.
EarningsThere 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.
Operating MarginVolatility of coal fuel supply and prices could continue impacting HPI’s operating margin.