Zacks Investment Research upgraded
Huaneng Power International, Inc.
) to a Zacks Rank #1 (Strong Buy) on Mar 22, 2013. The company
with a market capitalization of roughly $14.7 billion is a
well-known power producer in the People's Republic of China.
Why the Upgrade?
Huaneng Power reported its financial results for the fourth
quarter and year 2012 on Mar 19, 2013. In local currency, the
company's net income in 2012 grew 366.95% year over year while
revenue increased marginally by 0.41%. Huaneng Power's earnings
per ADS in 2012 were US$2.48.
Operating income in the year grew 93.8% year over year as
revenue growth was complimented by a year-over-year decline of
6.3% in operating expenses. Fuel costs accounted for roughly
70.8% of the total operating expenses.
Year 2012 has been very beneficial for Huaneng Power on this
front as a huge amount of coal was purchased at an affordable
price. Fuel cost per unit of electricity sold represented a 7.6%
Huaneng Power has been very active in rewarding its
shareholders and it does so mainly by paying dividends. The
company's board has proposed to declare a quarterly dividend
payment of RMB0.21 per share to its shareholders.
Impressive financial results and anticipation of a better
outlook have resulted in an increase in earnings estimate for
Huaneng Power. For 2013, the Zacks Consensus Estimate has moved
up 8.9% to $4.63 in the last 7 days while for 2014 the estimate
has increased by 1.0% to $4.94. Also, we have an Earnings ESP
Zacks Earnings ESP: A Better Method
) of +6.9% for 2013 and +6.7% for 2014.
Other Stocks to Consider
Other stocks to watch out for in the industry are
Brookfield Infrastructure Partners L.P.
Otter Tail Corporation
Pike Electric Corporation
), each with a Zacks Rank #1 (Strong Buy).
BROOKFIELD INFR (BIP): Free Stock Analysis
HUANENG POWER (HNP): Free Stock Analysis
OTTER TAIL CORP (OTTR): Free Stock Analysis
PIKE ELECTRIC (PIKE): Free Stock Analysis
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