Huaneng Power International, Inc.’s (HKG:902) Share Price Is Matching Sentiment Around Its Earnings
Huaneng Power International, Inc.’s (HKG:902) price-to-earnings (or “P/E”) ratio of 9.3x might make it look like a buy right now compared to the market in Hong Kong, where around half of the companies have P/E ratios above 12x and even P/E’s above 24x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
With earnings growth that’s superior to most other companies of late, Huaneng Power International has been doing relatively well. It might be that many expect the strong earnings performance to degrade substantially, which has repressed…
