Guodian Power (600795) Valuation Framework Reshaping and Investment Attractiveness Analysis

As a leader in the power industry, Guodian Power (600795) currently has a market capitalization of approximately $10.577 billion [0], with a stock price increase of 33.86% since 2025 [0]. Its price-to-earnings ratio (P/E) is 14.26x and price-to-book ratio (P/B) is 1.73x, placing its valuation at a reasonable range within the industry.

Regarding the company’s management changes and asset injection plans, no direct verification information has been retrieved from current English news channels [0]. However, from an industry background perspective, if market capitalization management improves after the major shareholder’s leadership change, combined with the cost advantage of 100% coverage of long-term coal contracts, it may drive the company’s transformation from a traditional cyclical stock to a value stock. Full coverage of long-term coal contracts can stabilize the cost of thermal power business and reduce the impact of coal price fluctuations on profits [0].

In terms of dividends, the company commits that the interim report dividend rate will not be less than 60% and the per-share dividend will be 0.22 yuan. This high dividend strategy helps enhance attractiveness to long-term investors [0]. In addition, the expected commissioning of the Dadu River Hydropower Station and the injection of high-quality thermal power and hydropower assets from the group, if realized, will significantly improve the company’s profitability, with net profit expected to rise from 2 billion yuan to 3 billion yuan [0].

1. Valuation Framework Reshaping Potential
   : Management changes and improved market capitalization management, combined with the cost advantage of long-term coal contracts, may reduce the company’s profit volatility and promote valuation transfer from cyclical stocks to the PE/PB range of stable value stocks.
2. Dividend Strategy Attractiveness
   : The commitment of an interim dividend rate not less than 60% provides stable cash flow for long-term investors and enhances the company’s attribute as a value investment target.
3. Asset Injection Growth Momentum
   : The injection of high-quality thermal power and hydropower assets from the group and the commissioning of the Dadu River Hydropower Station will bring a new round of profit growth to the company and increase long-term valuation space.

• Management changes and asset injection plans have not been publicly verified [0], so there are uncertainties.
• Changes in power demand growth and electricity price policies may affect the company’s profits.

• Under the 100% coverage of long-term coal contracts, the de-cyclicalization characteristics of the thermal power business are emerging.
• High dividend commitments and profit growth expectations attract long-term value investors.

Guodian Power (600795) has the potential to transform from a cyclical stock to a value stock by virtue of the cost advantage of long-term coal contracts, high dividend commitments, and potential asset injection plans. The company’s current valuation is reasonable; if management changes and asset injection plans are implemented, it will further enhance investment attractiveness. Long-term investors can pay attention to the company’s profit stability, the implementation of dividend policies, and the progress of asset integration.