CGN New Energy Holdings (SEHK:1811) After Mixed Output Data Is The Stock A Bargain

Mixed June Output Highlights Shifts Within CGN New Energy Holdings Portfolio

CGN New Energy Holdings (SEHK:1811) has released preliminary operating data for June and the first half of 2026, showing overall power generation declines but contrasting trends across wind, solar, gas, hydro and Korea projects.

For June 2026, group power generation was 1,331.5 GWh, down 5.1% year on year. Within this total, PRC wind output fell 17.1%, PRC solar rose 33.5%, PRC gas-fired increased 6.3%, PRC hydro declined 10.5% and Korea projects fell 6.5%.

Over the six months to 30 June 2026, total generation reached 9,307.3 GWh, a 2.2% decline versus the same period in 2025. During this period, PRC wind fell 17.9%, PRC solar rose 35.3%, PRC gas-fired increased 3.7%, PRC hydro increased 12.3% and Korea projects increased 12.8%.

See our latest analysis for CGN New Energy Holdings.

CGN New Energy Holdings’ latest operating update lands after a weak run in the stock, with a 30 day share price return down 16.1% and a 90 day share price return down 19.2%. The 3 year total shareholder return of 12.5% remains ahead of its 1 year total shareholder return decline of 8.7%, suggesting recent momentum has faded compared with longer term performance.

If shifting power mix trends have your attention, it can be useful to scan beyond one utility stock and see which other companies are positioned for the energy transition through the 34 power grid technology and infrastructure stocks

After a double digit share price slide and an estimated intrinsic value gap of about 80%, the tension for CGN New Energy Holdings is clear: is the market wisely cautious about its power mix, or overly harsh on the stock’s risks?

Price to earnings signal for CGN New Energy Holdings: is the discount justified?

On a simple comparison, CGN New Energy Holdings screens as cheap, with a P/E of 4.3x against a peer average of 7x and a wider Asian renewable energy industry average of 15.1x, even after the recent share price fall to HK$2.19.

The P/E ratio compares the current share price to earnings per share, so a lower P/E can indicate that the market is placing a lower value on each unit of current earnings. For CGN New Energy Holdings, a 4.3x P/E alongside 11.2% earnings growth over the past year and 4.2% per year over five years suggests the stock is not being priced in line with its recent profit track record.

Against the Asian Renewable Energy industry average P/E of 15.1x, the gap is wide, and even versus a narrower peer group average of 7x, the discount is clear. That relative gap implies investors are assigning a lower valuation multiple to the company than to comparable renewable energy stocks, despite earnings growth that exceeded an industry earnings decline of 13.5%. See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-earnings of 4.3x (UNDERVALUED)

However, CGN New Energy Holdings still faces risks, including weaker recent share price momentum and portfolio exposure to multiple generation technologies and regions that could pressure sentiment.

Find out about the key risks to this CGN New Energy Holdings narrative.

Another view on CGN New Energy Holdings: cash flows paint an even starker picture

The P/E comparison suggests CGN New Energy Holdings is on a low multiple, but the SWS DCF model goes further, with an estimated fair value of HK$11.22 per share versus the current HK$2.19. That gap points to very different opinions on what the company’s future cash flows are worth. Which signal do you treat as more credible?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CGN New Energy Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 212 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of low multiples, recent share price weakness and shifting generation data for CGN New Energy Holdings leaves you undecided, consider it a prompt to review the numbers, risk factors and upside signals for yourself through the 2 key rewards and 2 important warning signs

Looking for more investment ideas beyond CGN New Energy Holdings?

If CGN New Energy Holdings has sharpened your focus on valuations and risks, do not stop here. Broaden your watchlist now and let quality ideas compete for your attention.

• Spot potential bargains early by scanning the market for companies that combine quality fundamentals with room for a re rating through the 212 high quality undervalued stocks.
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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.

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