Stock

HCIG Energy Investment Co.

000600.SZ
52
Regulated Electric · Utilities
Price
¥7.20
-0.07 (-0.96%)
Market Cap
¥12.90B
Exchange
Shenzhen Stock Exchange
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Oct 12, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Mixed
9/30
Growth
Good
12/20
Cash Flow
Good
6/10
Stability
Good
5/10
Valuation
Good
6/10
Ownership
Good
10/15
Dividends
Strong
4/5

52 of 100 counted points = Winston Score 52.

Share count rising — dilution

+1.0% over 3y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.79B (2022) → 1.81B (2025)

§Winston Score History

The full picture

HCIG Energy Investment Co., Ltd. is a Chinese utility company that generates and distributes electricity. It operates power plants — primarily coal-fired and increasingly renewable sources like wind and solar — and sells electricity to the grid and industrial customers across China. The company is part of China's regulated electric utility sector, where large state-linked firms dominate energy infrastructure.

HCIG makes most of its money by selling electricity at government-regulated prices, which provides steady but controlled revenue. It operates mainly in China, and with a market cap of around $14.2 billion, it is a mid-to-large player in the domestic power sector. Its competitive position benefits from long-term grid supply agreements and the difficulty of building competing power infrastructure, though regulated pricing limits how much profit it can earn. The key growth driver is China's push to expand clean energy capacity, but rising fuel costs and tight government price controls remain ongoing risks to profitability.

Score breakdown

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Quality

Profit per sale
Gross Margin
23.6%
Thin — 23.6% gross margin
Profit after running costs
Operating Margin
7.6%
Modest — 7.6% operating margin
Return on the money invested
ROCE
8.3%
Below par — 8.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth
Sales YoY
-10.6%
Shrinking sales (-10.6% YoY)
Profit growth
EPS YoY
+54.2%
Earnings growing fast (+54.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
275%
Turns 275% of profit into real cash
Spare cash per sale
FCF Margin
-0.4%
Burning cash (-0.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
1.89
Elevated debt (1.89)
Covers its interest
Interest Cover
6.00x
Adequate interest coverage (6.0x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
7.5x
Attractive valuation — P/E 7.5

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-1.5
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
3.00%
Moderate income — 3.00% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+26.2%
Dividend growing fast (26.2% YoY)
Payout Ratio
58%
no trend
Pays out a modest share of profit and keeps the rest to reinvest. Room to keep paying through a weak year.

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