Equity valuation and capital allocation at GD Power Development

This study evaluates GD Power Development through common shareholders' ownership claims, earnings quality, capital allocation, and market-implied expectations. A high dividend yield alone does not establish undervaluation. At the reference price of CNY 5.32, the shares require persistently strong returns on common equity. The reported bear, base, and bull valuations are CNY 2.65, 4.32, and 6.99 per share, respectively. A steady-state residual income inversion implies a long-run return on equity of approximately 12.4%, assuming a 9% cost of equity and 3% perpetual growth. The resulting research stance is valuation-cautious, with a neutral watch status. Electricity tariffs, coal costs, hydropower utilization, returns on common equity, acquisition pricing, and returns on capital expenditure matter more to the investment case than installed capacity growth alone. Scenario values remain conditional research estimates; independent model validation and portfolio-level capital authorization are outstanding.