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Northeast Electric Development Co., Ltd. Class H
(0042)
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Rating:41Neutral
Price Target:
HK$0.24
▼(-12.86% Downside)
Action:Reiterated
Date:06/18/26
The score is primarily driven down by weak financial performance (persistent losses, negative equity, and recent cash burn). Technicals add further pressure with a clear downtrend and negative momentum. Valuation does not provide support because the negative P/E reflects ongoing losses and no dividend yield is available.
Positive Factors
Gross margin resilience
Stable gross margins near 29–31% suggest the company retains control over core unit economics (pricing or cost of goods). This durability means recovering top-line demand or modest operating cost cuts could more directly flow to operating profit, supporting a credible path to sustainable profitability.
Negative Factors
Negative shareholders' equity
Persistent negative shareholders' equity is a structural solvency concern: it signals cumulative losses, limits borrowing capacity, and increases risk of covenant breaches or dilution. This undermines long-term financial flexibility and raises the likelihood of recapitalization or creditor-driven restructuring.
Read all positive and negative factors
Positive Factors
Negative Factors
Gross margin resilience
Stable gross margins near 29–31% suggest the company retains control over core unit economics (pricing or cost of goods). This durability means recovering top-line demand or modest operating cost cuts could more directly flow to operating profit, supporting a credible path to sustainable profitability.
Read all positive factors
Northeast Electric Development Co., Ltd. Class H (0042) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$222.71M
Dividend YieldN/A
Average Volume (3M)657.87K
Price to Earnings (P/E)―
Beta (1Y)0.95
Revenue Growth4.85%
EPS Growth-721.43%
CountryHK
Employees286
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)-0.09
Shares Outstanding257,950,000
10 Day Avg. Volume255,800
30 Day Avg. Volume657,866
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.76
Price to Sales (P/S)1.29
P/FCF Ratio-12.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Northeast Electric Development Co., Ltd. Class H Business Overview & Revenue Model
Company Description
Northeast Electric Development Company Limited functions as an investment holding firm, primarily concentrating on the research, design, development, manufacturing, and distribution of power transmission and transformation equipment throughout the...
How the Company Makes Money
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Northeast Electric Development Co., Ltd. Class H Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
14
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 164.17M | 156.44M | 110.43M | 161.00M | 119.48M |
| Gross Profit | 50.24M | 46.08M | 51.23M | 92.22M | 68.82M |
| EBITDA | -6.81M | -7.34M | 4.97M | -26.11M | 35.98M |
| Net Income | -82.70M | -10.11M | -5.96M | -25.14M | 17.63M |
Balance Sheet | |||||
| Total Assets | 196.63M | 182.46M | 181.53M | 181.48M | 194.43M |
| Cash, Cash Equivalents and Short-Term Investments | 10.57M | 15.21M | 6.44M | 9.95M | 36.55M |
| Total Debt | 6.98M | 6.99M | 7.91M | 6.91M | 40.38M |
| Total Liabilities | 473.01M | 391.88M | 380.76M | 374.51M | 361.96M |
| Stockholders Equity | -278.36M | -211.46M | -201.22M | -195.06M | -169.70M |
Cash Flow | |||||
| Free Cash Flow | -16.92M | -5.79M | -3.78M | 6.98M | 5.35M |
| Operating Cash Flow | -16.43M | -5.60M | -3.77M | 7.14M | 5.43M |
| Investing Cash Flow | -121.76K | 11.12M | -474.00K | 89.00K | 5.41M |
| Financing Cash Flow | 8.40M | 3.38M | 927.00K | -12.96M | -3.74M |
Northeast Electric Development Co., Ltd. Class H Technical Analysis
Negative
0.28
Price Trends
0.37
Negative
0.38
Negative
0.33
Negative
Market Momentum
-0.03
Positive
26.20
Positive
10.06
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0042, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.32, below the 50-day MA of 0.37, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 26.20 is Positive, neither overbought nor oversold. The STOCH value of 10.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0042.
Northeast Electric Development Co., Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (61)
HK:0042
Northeast Electric Development Co., Ltd. Class H
0.28
0.04
15.70%
HK:0559
DeTai New Energy Group
0.13
-0.02
-14.86%
Northeast Electric Development Co., Ltd. Class H Corporate Events
Northeast Electric Shareholders Approve All AGM Resolutions and Reappoint Auditors for 2026
Jun 2, 2026
Northeast Electric Development Co., Ltd. held its 2025 annual general meeting in Haikou, Hainan, where shareholders representing 9.3314% of the company’s issued share capital attended in person or by proxy. The meeting was chaired by board c...
Northeast Electric Calls 2025 AGM, Confirms Loss and Halts Dividend Payout
Apr 29, 2026
Northeast Electric Development Co., Ltd. has convened its 2025 annual general meeting for June 2, 2026 in Haikou, Hainan, where shareholders will vote on a series of ordinary resolutions covering audit appointments, annual reporting and governance...
Northeast Electric Development Swings to Deep 2025 Loss Despite Revenue Growth
Apr 1, 2026
Northeast Electric Development Co., Ltd. reported consolidated revenue of about RMB164.17 million for 2025, an increase of roughly RMB7.73 million from 2024, reflecting modest top-line growth in its electrical equipment and services business. Desp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.