Financial Analysis Of Huaneng Power International Based On The Harvard Analysis Framework

The operation situation of power industry depends on the business performance of listed electrical power companies,so they receive widespread attention of the market.Huaneng Power International co.LTD.(hereinafter referred to as Huaneng Power International) is one of China’s largest listed power companies. By the end of 2014,the company with more than 67000 mw controllable power capacity and annual capacity of 317.5 billion KWH,has become the first in the domestic industry comparable company. The company’s operating status and future development ability plays an important influence on our country’s energy supply.Therefore,based on a comprehensive financial analysis and evaluation of the huaneng power international,this article will help managers to improve decision-making,by the same time it will provide reference information for the general investors.This study uses the famous Harvard analysis framework as the analysis tool,and chooses the nearly five years of Huaneng Power International’s financial statements as the research object.First of all,the content and the basic logic of the analysis of the Harvard analysis framework will be presentated in detail.Secondly, the paper will make systematic analysis of Huaneng Power International based on the Harvard Analysis Framework.There are four analytical dimensions of the Harvard Analysis Framework:strategic analysis acknowledging the the status of huaneng power international industry and strategic direction;accounting analysis confirmed the major projects and key accounting policies of the Huaneng Power International, to ensure the authenticity and effectiveness of financial analysis conclusion;in view of the evaluation of strategic analysis and accounting analysis,financial analysis focuse on the quality of the company’s assets and profits,company’s debt paying ability,operation conditions, etc.,at the same time using the Du Pont analysis to make comprehensive analysis to find the factors which affect the financial indicators.At last,based on the results of the analysis,this paper to table a reasonable proposal to develop the company.Based on these analysis,came out the following conclusions. Refer to the layout of national electric power company,Huaneng Power International as thermal power,is better at the aspects of thermal power operation and management level, profitability and the pace of future scale expansion such as merger or new constructionand than other thermal power enterprises.It’s development ability is relatively good. But at the same time,we must pay attention to the influence of national related environmental protection policy and technical innovation to the thermal power enterprises.The long term investment for the enterprises should be cautious.This article using the Harvard Analytical Framework to make financial analysis of the electric power listed company,and make objective evaluation and reasonable suggestionit,to make reference significance for the same companies.