Investing in CGN Power (HKG:1816) five years ago would have delivered you a 99% gain

Simply Wall St.10-13

When we invest, we're generally looking for stocks that outperform the market average. Buying under-rated businesses is one path to excess returns. For example, the CGN Power Co., Ltd. (HKG:1816) ...

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(HKG:1816) ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/utilities/hkg-1816/cgn-power-shares/news/investing-in-cgn-power-hkg1816-five-years-ago-would-have-del\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Investing in CGN Power (HKG:1816) five years ago would have delivered you a 99% gain</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInvesting in CGN Power (HKG:1816) five years ago would have delivered you a 99% gain\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-13 09:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/utilities/hkg-1816/cgn-power-shares/news/investing-in-cgn-power-hkg1816-five-years-ago-would-have-del><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When we invest, we're generally looking for stocks that outperform the market average.  Buying under-rated businesses is one path to excess returns.  For example, the CGN Power Co., Ltd. (HKG:1816) ...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/utilities/hkg-1816/cgn-power-shares/news/investing-in-cgn-power-hkg1816-five-years-ago-would-have-del\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4234","symbol_name":"特殊用途房地产信托","start_time":0,"source_url":"https://simplywall.st/stocks/hk/utilities/hkg-1816/cgn-power-shares/news/investing-in-cgn-power-hkg1816-five-years-ago-would-have-del","article_id":"2475955738","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551703-choice2-main-header/1585186877637"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2475955738","pubTimestamp":1728783309,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When we invest, we're generally looking for stocks that outperform the market average. Buying under-rated businesses is...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4234":"特殊用途房地产信托","BK4084":"特种房地产投资信托","BK1505":"一带一路","BK1594":"碳中和概念股","PW":"Power REIT","BK1524":"核电","01816":"中广核电力","BK1125":"独立电力生产商与能源贸易商"},"translate_title":"五年前投资中广核电力(HKG：1816)将为您带来99%的收益","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"01816":1,"PW":1},"content_text":"When we invest, we're generally looking for stocks that outperform the market average.  Buying under-rated businesses is one path to excess returns.  For example, the CGN Power Co., Ltd. (HKG:1816) share price is up 57% in the last 5 years, clearly besting the market return of around 1.2% (ignoring dividends).      So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.   Check out our latest analysis for CGN Power   While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational.  One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.   Over half a decade, CGN Power managed to grow its earnings per share at 1.3% a year.   This EPS growth is lower than the 9% average annual increase in the share price.  So it's fair to assume the market has a higher opinion of the business than it did five years ago.  And that's hardly shocking given the track record of growth.   The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). SEHK:1816 Earnings Per Share Growth October 13th 2024 We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies.  But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward.  Dive deeper into the earnings by checking this interactive graph of CGN Power's earnings, revenue and cash flow.  What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested.  So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return.  We note that for CGN Power the TSR over the last 5 years was 99%, which is better than the share price return mentioned above.  The dividends paid by the company have thusly boosted the total shareholder return.  A Different Perspective It's good to see that CGN Power has rewarded shareholders with a total shareholder return of 62% in the last twelve months.   That's including the dividend.     Since the one-year TSR is better than the five-year TSR (the latter coming in at 15% per year), it would seem that the stock's performance has improved in recent times.  Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time.        While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important.   Case in point: We've spotted   1 warning sign for CGN Power  you should be aware of.     Of course CGN Power may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2475955738"}