China Everbright (0165) AI Stock Analysis

• Market Cap: HK$17.66B
• Dividend Yield: 1.07%
• Average Volume (3M): 24.94M
• Price to Earnings (P/E): ―
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$10.50 ▲(13.02% Upside)

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

Affiliation with China Everbright Group and diversified platforms

As an investment holding within the China Everbright Group, the company benefits from franchise, distribution and group relationships across asset management and financial services. That structural ecosystem supports deal flow, product distribution and strategic partnerships over the medium term.

Positive operating and free cash flow in 2023–2024

Consistent positive operating and free cash flow across 2023–2024, despite accounting losses, shows core cash generation. This durable cash buffer supports working capital, debt service and selective reinvestment, providing runway for restructuring or rebuilding profitability.

Manageable leverage with 2024 debt reduction

Sustained, moderate leverage and a reduction in debt in 2024 strengthen financial flexibility over the medium term. This lowers refinancing and interest burdens, preserves capacity to support operations or pursue strategic moves during a multi-year restructuring or recovery phase.

Negative Factors

Volatile cash flows and meaningful 2024 decline

Historic cash-flow volatility and a notable drop in operating cash flow in 2024 reduce predictability for funding operations and investments. Persistent variability raises working-capital and refinancing risk, complicates multi-year planning, and undermines confidence in durable cash generation.

Negative ROE for three consecutive years

Three straight years of negative return on equity indicate the company is not generating returns on invested capital. This persistent loss of shareholder value constrains reinvestment, weakens capital allocation options, and raises the risk of longer-term strategic dilution or restructuring.

Multi-year net losses and severe 2024 revenue collapse

A pronounced, multi-year swing to net losses and an ~83% revenue collapse in 2024 represent a structural impairment of the revenue base and earnings quality. Such deep contraction erodes scale economics, reduces pricing power and makes margin recovery and client retention more difficult.

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

China Everbright is facing significant financial challenges, characterized by declining revenues, persistent losses, and high leverage. The company is struggling with operational inefficiencies and inconsistent cash flow generation, which undermine its financial stability. While there is some liquidity strength, the high debt levels and continuous negative income point to a need for strategic restructuring to improve financial health.

Income Statement

The income statement shows a significant deterioration in financial performance. The decline in Total Revenue and persistent negative Net Income over the past few years highlight financial stress. The Gross Profit Margin and Net Profit Margin have been consistently negative, indicating operational inefficiencies and a lack of profitability. The revenue growth has been inconsistent, with a notable decline in recent periods.

Balance Sheet

The balance sheet indicates a moderately stable financial position with high leverage. The Debt-to-Equity Ratio has remained relatively high, suggesting potential financial risk. Stockholders' Equity has declined over the years, and the Equity Ratio reflects a moderate level of equity financing. However, the company maintains a substantial level of cash and short-term investments, which provides some liquidity buffer.

Cash Flow

Cash flow analysis highlights inconsistent cash flow generation. The company has faced challenges in maintaining positive Operating Cash Flow, and Free Cash Flow has shown volatility. The Free Cash Flow to Net Income Ratio has been poor due to persistent negative net income, further compounded by significant variations in capital expenditures and financing activities.

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: Positive
• Last Price: 9.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0165, the sentiment is Positive. The current price of 9.29 is below the 20-day moving average (MA) of 9.81, below the 50-day MA of 9.44, and above the 200-day MA of 7.98, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 60.59 is Neutral, neither overbought nor oversold. The STOCH value of 61.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$4.69B	19.12	6.68%	0.44%	28.57%	342.11%
0245	56 Neutral	HK$1.99B	1.94	22.46%	―	56.35%	―
1697	55 Neutral	HK$1.68B	11.34	1.22%	―	-31.46%	-10.06%
1359	50 Neutral	HK$48.09B	27.81	1.61%	1.92%	-15.83%	-32.08%
2799	48 Neutral	HK$69.01B	6.52	17.48%	―	-16.24%	-14.24%
0165	47 Neutral	HK$17.66B	-76.02	-0.76%	1.07%	-23.19%	93.53%

China Everbright Corporate Events

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.