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CGN Power CoHKSE:01816 -2.04%72 ROE % is 3.88% as of Dec. 2025, which is 63% below its 10-year median of 10.38. GuruFocus rates HKSE:01816 with a GF Score™ of 72/100 and a GF Value™ of HK$2.71 (Fairly Valued). The stock has 7 warning signs investors should review. Among 436 Utilities - Independent Power Producers companies, CGN Power Co ranks better than 65.83% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. CGN Power Co's annualized net income for the quarter that ended in Dec. 2025 was HK$5,256 Mil. CGN Power Co's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was HK$135,445 Mil. Therefore, CGN Power Co's annualized ROE % for the quarter that ended in Dec. 2025 was 3.88%.
The historical rank and industry rank for CGN Power Co's ROE % or its related term are showing as below:
HKSE:01816'
s ROE % Range Over the Past 10 Years
Min: 7.89 Med: 10.38 Max: 16.16
Current: 7.91
During the past 13 years, CGN Power Co's highest ROE % was 16.16%. The lowest was 7.89%. And the median was 10.38%.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
CGN Power Co ROE % Related Terms
CGN Power Co ROE % Historical Data
* Premium members only.
The historical data trend for CGN Power Co's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Independent Power Producers subindustry, CGN Power Co's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CGN Power Co ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, CGN Power Co's ROE % distribution charts can be found below:
* The bar in red indicates where CGN Power Co's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
CGN Power Co (HKSE:01816) has a ROE % of 3.88% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on CGN Power Co and its competitors. This is 63% below median its historical median of 10.38. Over the past decade, CGN Power Co's ROE % has ranged from 7.89 to 16.16. According to the industry distribution chart, CGN Power Co ranks #149 out of 436 companies in the Utilities - Independent Power Producers industry, placing it in the top 34.2%.
Is CGN Power Co's ROE % too high?
CGN Power Co's current ROE % of 3.88% is 63% below median its 10-year median of 10.38. Over the past 10 years, this metric has ranged from a low of 7.89 to a high of 16.16. The Utilities - Independent Power Producers industry median ROE % is 3.82. CGN Power Co's value of 3.88% is 1.6% above this industry median. Based on the distribution chart, CGN Power Co ranks #149 out of 436 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, CGN Power Co has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CGN Power Co's ROE % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, CGN Power Co ranks #149 out of 436 companies for ROE %. This puts CGN Power Co in the upper half of its industry. The industry median ROE % is 3.82. CGN Power Co's value of 3.88% is 1.6% above this benchmark. Historically, CGN Power Co's own ROE % has ranged from 7.89 to 16.16 over the past decade. While the company's 10-year median is 10.38 vs. the industry median of 3.82, CGN Power Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.82, based on 436 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CGN Power Co's current ROE % of 3.88% is 1.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on CGN Power Co and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CGN Power Co's current ROE % is 3.88%, which is 63% below median its own 10-year median of 10.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CGN Power Co stock overvalued right now?
Based on GuruFocus' analysis, CGN Power Co (HKSE:01816) is currently considered Fairly Valued. The stock's GF Value™ is HK$2.71, compared to a current price of HK$2.88 — trading 6.3% above its estimated fair value. The current ROE % is 3.88%, which is 63% below median its 10-year median of 10.38 and 1.6% above the Utilities - Independent Power Producers industry median of 3.82. CGN Power Co's overall GF Score™ is 72/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For CGN Power Co (HKSE:01816), the current ROE % is 3.88% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is CGN Power Co (HKSE:01816) Overvalued in 2026?
Based on GuruFocus' analysis, CGN Power Co stock appears to be overvalued.
The current stock price of HK$2.88 is trading 6.3% above its estimated GF Value™ of HK$2.71.
GuruFocus considers CGN Power Co to be Fairly Valued.
Key valuation signals for HKSE:01816:
ROE %: 3.88% (63% below median its 10-year median of 10.38)
GF Value™: HK$2.71 vs. price of HK$2.88 (6.3% above fair value)
Industry Position: 1.6% above the Utilities - Independent Power Producers median (#149 of 436)
No single metric tells the full story. See the HKSE:01816 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CGN Power is a nuclear power producer in China. It operates 28 nuclear power generating units (total installed capacity of 31.8 gigawatts), with 14 units in Guangdong and the rest in Guangxi, Fujian, and Liaoning provinces as of end-2025. State-owned China General Nuclear Power, controls about 58.9% of CGN Power.
72GF Score
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