1H26 Post-Results HK NDR – Key Takeaways

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M

Update

August 20, 2026 01:51 PM GMT

Chuangxin Industries Holdings Ltd. | Asia Pacific

Morgan Stanley Asia Limited+

Hannah Yang, CFA

Equity Analyst

1H26 Post-Results HK NDR –

Key Takeaways

Rachel L Zhang

Equity Analyst

Chris Jiang

Equity Analyst

Key Takeaways

Average power tariff in 1H26 was Rmb0.33/kWh with VAT. Power tariffs for

Cynthia Tang

Research Associate

captive thermal and wind power were Rmb0.32/kWh and <Rmb0.1/kWh,

respectively

Captive thermal power, green energy, and purchased grid power contributed

56%, 21%, and 23% of power usage in 1H26, respectively.

Along with the increasing consumption of cheaper wind power, total power tariff

Chuangxin Industries Holdings Ltd. (2788.HK, 2788 HK)

in 2026 could be ~Rmb0.31-0.32/kWh and could drop Rmb0.28-0.29/kWh in

Greater China Materials | China

2027.

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 20, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

The coal mine acquisition was completed in 1H26. Once production starts, it

could bring another Rmb0.04-0.05.kWh decline in Chuangxin's electricity cost.

Management noted that dividend payout is expected to stay at the level of the

most recent two years. It aims for gradual increase in the long-term.

Overweight

Attractive

HK$22.00

39

HK$15.78

HK$33.96-13.46

2,075

Rmb28,080.5

Rmb32,908.5

HK$192

Deleveraging remains a focus for the company: Net gearing rose materially in 1H26

Fiscal Year Ending

reflecting the Rmb1.9bn in debt associated with the newly acquired coal mine and

EPS (Rmb)**

1.8

2.3

2.2

2.6

EPS (Rmb)§

1.6

2.3

2.6

3.0

Revenue, net (Rmb mn) 18,680.6 21,076.5 23,244.2 26,869.9

EBITDA (Rmb mn)

5,155.2 8,472.6 8,730.9 10,210.8

ModelWare net inc

2,730.0 4,733.5 4,562.1 5,439.9

(Rmb mn)

P/E

10.6

5.9

6.2

5.2

P/BV

3.0

2.4

2.0

1.7

RNOA (%)

30.3

43.0

37.9

41.6

ROE (%)

217.6

49.2

38.2

38.4

EV/EBITDA

6.6

3.9

3.6

3.0

Div yld (%)

2.4

8.6

8.3

9.9

FCF yld ratio (%)**

7.5

11.2

13.6

17.4

Leverage (EOP) (%)

58.8

43.5

25.4

7.5

Rmb600mn in borrowing related to the two acquisitions in 1H26. Excluding these,

…