A Piece Of The Puzzle Missing From Huaneng Power International, Inc.’s (HKG:902) Share Price
With a median price-to-earnings (or “P/E”) ratio of close to 11x in Hong Kong, you could be forgiven for feeling indifferent about Huaneng Power International, Inc.’s (HKG:902) P/E ratio of 9.8x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
With earnings growth that’s superior to most other companies of late, Huaneng Power International has been doing relatively well. One possibility is that the P/E is moderate because investors think this strong earnings performance might be about to tail off. If you like the company, you’d be hoping…
