China Everbright (0165) AI Stock Analysis

• Market Cap: HK$13.60B
• Dividend Yield: 1.07%
• Average Volume (3M): 24.94M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.65
• Revenue Growth: -23.19%
• EPS Growth: 93.53%
• Country: HK
• Employees: 242
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 0.24
• Shares Outstanding: 1,685,253,700
• 10 Day Avg. Volume: 13,937,282
• 30 Day Avg. Volume: 24,943,092
• PEG Ratio: 5.56
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 25.08
• P/FCF Ratio: 5.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): HK$5.92B

• Rating: 47 Neutral
• Price Target: HK$10.00 ▲(7.64% Upside)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

The score is held down primarily by deteriorated financial performance—multi-year net losses and a sharp 2024 revenue contraction—despite manageable leverage and currently positive but weakening/volatile cash flow. Technicals are neutral-to-weak (below key short/medium-term averages, slightly negative MACD), while valuation support is limited due to loss-making earnings and only a modest dividend yield.

Positive Factors

Manageable leverage

Manageable leverage and an improvement in debt metrics in 2024 provide durable financial flexibility. Lower relative indebtedness reduces refinancing pressure, supports funding for restructuring or selective investment, and gives management room to navigate multi-year earnings recovery without excessive interest burden.

Positive cash generation

Sustained positive operating and free cash flow across 2023–2024 is a constructive structural signal amid accounting losses. Reliable cash generation limits reliance on external financing, supports ongoing operations and selective reinvestment, and creates a liquidity buffer that aids a multi-quarter recovery plan.

Group affiliation and platform

As an investment holding within China Everbright Group with asset management and financial-services platforms, the company benefits from distribution, client relationships and potential group support. These structural advantages help preserve deal flow, client access, and strategic optionality over time.

Negative Factors

Multi-year net losses

Sizable net losses over multiple years represent structural earnings deterioration that erodes capital and restricts reinvestment. Persistent losses impair competitiveness, limit strategic choices, and increase the likelihood that recovery will require asset disposals, restructuring, or fresh capital injections.

Severe revenue contraction

A roughly 83% revenue collapse in 2024 indicates a meaningful loss of fee-generating scale or business lines. Structural revenue shrinkage undermines economies of scale, weakens pricing and distribution leverage, and makes sustainable margin restoration and ROE recovery materially more challenging.

Negative returns on equity

Three consecutive years of negative ROE signal that the company is not earning a basic return on invested capital, a durable indicator of value destruction. This impairs investor confidence, limits access to external equity funding, and constrains the firm's ability to rebuild reserves or fund growth organically.

China Everbright Business Overview & Revenue Model

Company Description

China Everbright Limited, through its subsidiaries, engages in the investment activities and provision of financial services in Hong Kong and Mainland China. The company invests in unlisted equity securities or equity derivatives, as well as in the areas of new economy, artificial intelligence and advanced manufacturing, new energy, medical care and senior healthcare, overseas acquisition and infrastructure, real estate, aircraft industry chain, mezzanine fund, and others. It also focuses on investing in aircraft leasing, artificial intelligence of things, and elderly care industry platforms; and investing in equity, debts, structured products, and other products. In addition, the company provides a range of financial services, including asset management, investment management, and investment advisory services related to absolute return funds, bond funds, and equity funds, as well as offers management, treasury management, money lending, fund management, property and project investment, venture capital, leasing, and consultancy services. The company was founded in 1997 and is headquartered in Hong Kong, Hong Kong. China Everbright Limited is a subsidiary of Honorich Holdings Limited.

How the Company Makes Money

China Everbright makes money through a variety of revenue streams centered around its core financial services. The company's asset management division generates income through management fees and performance fees from a diverse portfolio of funds, including private equity and venture capital investments. Additionally, Everbright earns interest and financial service fees through its structured financing and investment activities. Significant partnerships with institutional investors and strategic investments in various industries also contribute to its revenue, enabling the company to leverage synergies and expand its financial product offerings.

China Everbright Financial Statement Overview

Summary

Income statement weakness dominates: sizable net losses across 2022–2024 alongside a severe ~83% revenue decline in 2024 and worsening operating profitability. The balance sheet is not excessively levered and debt improved in 2024, but negative ROE for three years signals value erosion. Cash flow is positive in 2023–2024, yet weakened in 2024 and has been historically volatile.

Income Statement

Profitability has deteriorated sharply: the company posted sizable net losses in 2022–2024, with 2024 showing deeply negative gross and operating profitability (gross profit turned negative and operating losses widened). Revenue also fell steeply in 2024 (down ~83% YoY), indicating a major contraction or reset in the revenue base. While the business was solidly profitable in 2019–2021 with strong margins, the multi-year swing to heavy losses and the 2024 revenue collapse weigh heavily on the earnings quality and outlook.

Balance Sheet

Leverage appears manageable but not low for the profile: debt-to-equity has generally hovered around ~0.75–1.12, improving in 2024 versus 2023 as debt declined, and equity remains sizable relative to debt. However, returns on equity have been negative for three consecutive years (2022–2024), which weakens the balance sheet story because capital is not currently generating profits. Total assets have also trended down from 2021–2024, suggesting some balance sheet shrinkage alongside weaker operating performance.

Cash Flow

Cash generation is mixed. Operating and free cash flow were positive in 2023 and 2024, which is a constructive sign amid accounting losses, but operating cash flow fell meaningfully in 2024 versus 2023. Cash flow has also been volatile over time (notably negative operating/free cash flow in 2019 and 2022). Free cash flow closely tracked net income in magnitude in recent years (despite net losses), but the sharp drop in free cash flow growth in 2024 and the history of swings reduce confidence in consistency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.41B	356.15M	306.65M	3.42B	2.38B	4.09B
Gross Profit	1.48B	-615.69M	2.59B	2.55B	2.28B	3.91B
EBITDA	1.33B	-763.23M	0.00	-6.82B	4.03B	3.66B
Net Income	-149.27M	-1.83B	-1.82B	-7.35B	2.66B	2.28B
Balance Sheet
Total Assets	76.88B	74.69B	79.59B	84.48B	101.79B	96.97B
Cash, Cash Equivalents and Short-Term Investments	8.09B	18.20B	18.43B	7.95B	16.21B	17.59B
Total Debt	30.59B	30.16B	34.63B	32.98B	35.02B	34.05B
Total Liabilities	43.14B	42.04B	45.48B	48.94B	53.10B	49.88B
Stockholders Equity	30.58B	31.94B	30.99B	34.49B	46.94B	45.44B
Cash Flow
Free Cash Flow	1.24B	1.68B	3.17B	-7.68B	2.05B	6.25B
Operating Cash Flow	1.26B	1.69B	3.18B	-7.68B	2.05B	6.26B
Investing Cash Flow	332.65M	1.11B	1.70B	329.52M	482.41M	1.83B
Financing Cash Flow	-2.71B	-3.61B	-3.11B	-2.78B	924.19M	77.91M

China Everbright Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0165, the sentiment is Negative. The current price of 9.29 is above the 20-day moving average (MA) of 9.13, below the 50-day MA of 9.59, and above the 200-day MA of 8.78, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 23.05 is Positive, neither overbought nor oversold. The STOCH value of 6.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0165.

China Everbright Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
0806	58 Neutral	HK$4.11B	3.54	6.68%	0.44%	28.57%	342.11%
0245	56 Neutral	HK$1.93B	0.70	22.46%	―	56.35%	―
1697	55 Neutral	HK$1.63B	2.48	1.22%	―	-31.46%	-10.06%
1359	52 Neutral	HK$43.89B	6.62	1.61%	1.92%	-15.83%	-32.08%
2799	48 Neutral	HK$64.20B	4.42	17.48%	―	-16.24%	-14.24%
0165	47 Neutral	HK$13.60B	7.68	-0.76%	1.07%	-23.19%	93.53%

China Everbright Corporate Events

China Everbright Sets March 2026 Board Meeting to Approve 2025 Results and Consider Final Dividend

China Everbright Limited has scheduled a board meeting for 26 March 2026 to approve the annual results of the company and its subsidiaries for the financial year ended 31 December 2025. At the same meeting, the board will also consider whether to recommend a final dividend, a decision that will be closely watched by shareholders for indications of the group’s profitability, capital position and overall confidence in its future performance.

The most recent analyst rating on (HK:0165) stock is a Hold with a HK$10.00 price target. To see the full list of analyst forecasts on China Everbright stock, see the HK:0165 Stock Forecast page.

China Everbright Reshapes Top Management With Board Resignation and New Executive Appointment

China Everbright Limited announced that Executive Director and Vice President Yin Yanwu has resigned from the board, his management role and the Executive Board Committee with effect from 18 December 2025, citing work arrangements, with the board noting there is no disagreement and expressing appreciation for his service. The company simultaneously appointed Su Yang as an Executive Director, Vice President and member of the Executive Board Committee, placing him in charge of the Real Estate Fund Investment and Management Centre and the Medical and Related Business Fund Department, a move that underscores Everbright’s emphasis on real estate and healthcare investment platforms and refreshes its senior leadership bench with an experienced executive drawn from within the broader Everbright financial group.

China Everbright Limited Updates Board and Committee Structure

China Everbright Limited has announced an updated list of its directors and clarified the roles and functions of its various board committees as of 18 December 2025. The disclosure details the composition of the board, including non-executive and independent non-executive directors, and outlines the leadership and membership of key committees such as the Executive Board Committee, Audit and Risk Management Committee, Nomination Committee, Remuneration Committee, Strategy Committee and Environmental, Social and Governance Committee, signalling continued attention to corporate governance, oversight and strategic planning.

China Everbright Updates Board Governance Terms of Reference

China Everbright Limited has issued an updated version, dated 18 December 2025, of the Terms of Reference for its Board of Directors, formally defining key governance roles, board composition and classifications of directors, and the internal management structure. The document clarifies the functions and relationships among the Board, its Chairman, executive and non-executive directors, the Management Decision Committee and senior management positions, underscoring the company’s efforts to strengthen corporate governance transparency and align its board operations with Hong Kong’s Companies Ordinance and listing requirements, which is relevant for shareholders and other stakeholders monitoring oversight and decision-making processes within the Group.

China Everbright Updates Board Governance Framework and Management Roles

China Everbright Limited has updated the terms of reference for its Board of Directors as of 18 December 2025, formally defining the roles and relationships among directors, senior management and key governance bodies. The document clarifies the composition and responsibilities of the Board, distinguishes executive, non-executive and independent non-executive directors, and sets out the mandate of the Management Decision Committee and senior management positions, reflecting an effort to standardize corporate governance practices in line with Hong Kong’s Companies Ordinance and stock exchange requirements and to enhance oversight of the group’s operations for stakeholders.

China Everbright Updates Board Governance Framework and Definitions

China Everbright Limited has updated and formalised the terms of reference for its board of directors as of 18 December 2025, setting out clear definitions for the roles and responsibilities of directors, senior management, the chairman, and key governance bodies such as the Management Decision Committee. The document also standardises governance terminology in line with Hong Kong’s Companies Ordinance and the Stock Exchange’s Listing Rules, signalling an effort to enhance internal oversight, decision-making clarity and regulatory compliance across the group, which may strengthen corporate governance and transparency for shareholders and other stakeholders.

China Everbright Sets 2026 Deadline for Unclaimed 2018–2019 Dividends

China Everbright Limited has announced that, in line with its Articles of Association, any dividends remaining unclaimed for six years will be forfeited and revert to the company. The board has specified that the 2018 final dividend and the 2019 interim dividend, if still unclaimed by 4:30 p.m. on 19 January 2026, will be forfeited, and has urged eligible shareholders to contact the company’s share registrar in Hong Kong before that deadline to secure payment, underscoring the importance of timely action for investors who have not yet cashed their dividend warrants.