Back to top

Analyst Blog

Zacks Investment Research downgraded Datang International Power Generation to a Zacks Rank #5 (Strong Sell) on Apr 4, 2013.

Why the Downgrade?

Datang International reported its year 2012 financial results on Mar 26, 2013. In local currency, the company’s net income more than doubled with earnings per share showing a hike of 106.7% year over year. Operating revenue grew 7.2% year over year.

Of the total expense, a decline in costs related to fuel used for power and heat generation, roughly 50% of total revenue, was a sign of relief. On the other hand, expenses related to fuel for coal sales, repairs, salaries and other expenses all increased in the year, resulting in an overall increase of 2% in total operating costs.

Increase of 21% in finance costs in the year also impacted results badly. Also, income tax expenses grew a whopping 104% year over year. For the year 2013, management anticipates that slowdown in domestic economic growth will impact its performance during the year.     

A combination of all these factors has brought down earnings estimates for Datang International in the last 30 days. The Zacks Consensus Estimate for 2013 has gone down by 9.2% to $1.090 while for 2014, the estimate plummeted 12.0% to $1.32.

Other Stocks to Consider

Datang International is a China-based $5.9 billion electric utility. Other stocks to watch out for in the industry are Brookfield Infrastructure Partners L.P. (BIP - Snapshot Report), Pike Electric Corp (PIKE - Snapshot Report) and Empresa Nacional de Electricidad S.A. (EOC - Snapshot Report), each holding a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%