August Fundamental Stock Pick: China Resources Power Holdings Company Limited (HKG:836)

Attractive stocks have exceptional fundamentals. In the case of China Resources Power Holdings Company Limited (HKG:836), there’s is a highly-regarded dividend payer that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on China Resources Power Holdings here.

Undervalued established dividend payer

836’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Compared to the rest of the renewable energy industry, 836 is also trading below its peers, relative to earnings generated. This further reaffirms that 836 is potentially undervalued.

SEHK:836 Intrinsic Value Export August 23rd 18

Income investors would also be happy to know that 836 is one of the highest dividend payers in the market, with current dividend yield standing at 6.08%. 836 has also been regularly increasing its dividend payments to shareholders over the past decade.

SEHK:836 Historical Dividend Yield August 23rd 18

Next Steps:

For China Resources Power Holdings, I’ve compiled three fundamental factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for 836’s future growth? Take a look at our free research report of analyst consensus for 836’s outlook.

2. Historical Performance: What has 836’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of 836? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.