China Energy Development Holdings Limited (0228) AI Stock Analysis

• Market Cap: HK$707.11M
• Dividend Yield: N/A
• Average Volume (3M): 124.66K
• Price to Earnings (P/E): 104.7
• Beta (1Y): 0.47
• Revenue Growth: -23.19%
• EPS Growth: -94.80%
• Country: HK
• Employees: 54
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.04
• Shares Outstanding: 456,200,400
• 10 Day Avg. Volume: 160,390
• 30 Day Avg. Volume: 124,655
• PEG Ratio: -0.36
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 2.15
• P/FCF Ratio: 6.50
• 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: 59 Neutral
• Price Target: HK$1.50 ▼(-3.23% Downside)

The overall stock score of 59 reflects a combination of mixed financial performance and technical analysis. The stock's strong operational efficiency and positive technical indicators are offset by valuation concerns due to a high P/E ratio and lack of dividend yield.

Positive Factors

Operational Efficiency

Strong EBIT and EBITDA margins indicate effective cost control and operational efficiency, which can sustain profitability even with revenue fluctuations.

Stable Balance Sheet

A stable balance sheet with a high equity ratio suggests a solid financial foundation, reducing risk and enhancing the company's ability to invest in growth opportunities.

Gross Profit Margin Improvement

Improved gross profit margins reflect better cost management, which can enhance profitability and provide a buffer against revenue volatility.

Negative Factors

Declining Revenue

A declining revenue trend can indicate challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Net Profit Margin Decline

A declining net profit margin suggests difficulties in maintaining profitability, which could affect the company's ability to reinvest in its operations and growth.

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to fund operations and investments, posing risks to financial stability and growth initiatives.

China Energy Development Holdings Limited Business Overview & Revenue Model

Company Description

China Energy Development Holdings Limited, an investment holding company, engages in the exploration, development, production, and sale of natural gas. It operates through three segments: Exploration, Production, and Distribution of Natural Gas; Sales of Food and Beverages Business; and Money Lending Business. The company drills, explores for, develops, exploits, and produces oil and/or natural gas from site located in Xinjiang; and distributes natural gas through pipelines in the People's Republic of China. It is also involved in the sale of food and beverages; and provision of loans to third parties. The company was incorporated in 2001 and is headquartered in Central, Hong Kong.

How the Company Makes Money

The company generates revenue primarily through the sale of electricity produced from its renewable energy projects, including wind and solar farms. Key revenue streams include power generation contracts with local grid companies, which provide a stable income through long-term power purchase agreements. Additionally, China Energy Development Holdings Limited may earn income from consultancy services related to energy project management and development, as well as potential government subsidies and incentives aimed at promoting renewable energy initiatives. Strategic partnerships with local governments and other energy firms can also enhance its operational capacity and market reach, further contributing to its financial performance.

China Energy Development Holdings Limited Financial Statement Overview

Summary

China Energy Development Holdings Limited shows strong operational efficiency and a stable balance sheet. However, challenges include declining revenue, decreased net profit margins, and cash flow volatility, which impact overall financial health.

Income Statement

China Energy Development Holdings Limited demonstrates a fluctuating revenue trend with a decrease in total revenue from 2023 to 2024. However, gross profit margins improved considerably in 2024, reflecting better cost management. The net profit margin has declined, indicating challenges in converting revenue into profit. Despite these issues, EBIT and EBITDA margins remain strong, suggesting operational efficiency.

Balance Sheet

The company's balance sheet is stable with a high equity ratio, indicating a solid capital base. The debt-to-equity ratio is manageable, showing prudent leverage use. Return on Equity has decreased over the years, hinting at potential efficiency challenges in generating returns for shareholders.

Cash Flow

The cash flow statement shows significant volatility in free cash flow, with periods of negative free cash flow indicating investment and cash flow management challenges. Operating cash flow compared to net income shows a disconnect, which could signal issues with cash generation relative to reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	253.13M	300.10M	332.03M	323.03M	353.59M	173.48M
Gross Profit	205.76M	248.47M	187.47M	172.84M	188.99M	38.97M
EBITDA	157.16M	182.79M	211.15M	221.18M	335.34M	62.75M
Net Income	4.55M	27.34M	69.53M	83.27M	123.78M	-14.17M
Balance Sheet
Total Assets	2.35B	2.27B	2.37B	2.56B	2.85B	2.76B
Cash, Cash Equivalents and Short-Term Investments	70.89M	49.12M	72.45M	160.15M	204.93M	204.25M
Total Debt	300.56M	308.99M	475.69M	603.42M	569.80M	488.80M
Total Liabilities	493.87M	480.15M	634.56M	833.49M	1.07B	1.15B
Stockholders Equity	1.84B	1.78B	1.72B	1.72B	1.77B	1.60B
Cash Flow
Free Cash Flow	51.95M	99.32M	69.41M	-72.78M	-44.82M	-420.90M
Operating Cash Flow	70.88M	117.35M	155.30M	167.87M	213.02M	53.55M
Investing Cash Flow	-24.77M	-17.79M	-84.87M	-240.64M	-257.84M	-474.46M
Financing Cash Flow	-66.51M	-109.16M	-155.45M	52.60M	38.29M	345.44M

China Energy Development Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0228, the sentiment is Positive. The current price of 1.55 is above the 20-day moving average (MA) of 1.49, above the 50-day MA of 1.41, and below the 200-day MA of 1.66, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 66.53 is Neutral, neither overbought nor oversold. The STOCH value of 45.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0228.

China Energy Development Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0603	72 Outperform	HK$774.86M	5.58	4.05%	―	-12.48%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0228	59 Neutral	HK$707.11M	104.73	0.25%	―	-23.19%	-94.80%
2337	55 Neutral	HK$629.16M	17.25	7.01%	2.35%	-13.08%	-43.83%
0611	51 Neutral	HK$963.06M	―	―	―	―	―
0346	51 Neutral	HK$423.54M	8.05	4.17%	―	-32.19%	-70.01%
0451	48 Neutral	HK$2.14B	-3.10	-35.49%	―	39.42%	56.89%

China Energy Development Holdings Limited Corporate Events

China Energy Development Raises HK$236.7 Million in Oversubscribed Rights Issue, Triggers Mandatory Offer

China Energy Development Holdings Limited has completed a non-underwritten rights issue of one rights share for every two adjusted shares, offering 152,066,800 rights shares in total. The issue was slightly oversubscribed, with valid applications for 153,249,935 rights shares, including significant excess applications that were allocated on a fair, largely pro-rata basis to qualifying shareholders. As a result of the excess applications, Alpha Eagle Limited has triggered an obligation under Hong Kong’s Takeovers Code to make a mandatory unconditional offer for the company. The rights issue raised approximately HK$236.7 million in net proceeds, which the company plans to use as additional capital reserves to support its natural gas exploration, production and distribution business in the PRC, potentially strengthening its balance sheet and capacity to pursue new energy projects.

The most recent analyst rating on (HK:0228) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Energy Development Holdings Limited stock, see the HK:0228 Stock Forecast page.

China Energy Development Raises HK$236.7 Million in Oversubscribed Rights Issue, Triggering Mandatory Cash Offers

China Energy Development Holdings Limited has completed an over-subscribed rights issue, receiving valid applications for approximately 100.78% of the 152,066,800 rights shares on offer, generating gross proceeds of about HK$238.7 million and net proceeds of roughly HK$236.7 million. The strong subscription, including substantial take-up by Alpha Eagle Limited and its concert parties, has triggered mandatory unconditional cash offers for all issued shares and outstanding convertible bonds not already owned by the offeror group, potentially consolidating control and reshaping the company’s shareholder structure while providing fresh capital for its future operations.

The most recent analyst rating on (HK:0228) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Energy Development Holdings Limited stock, see the HK:0228 Stock Forecast page.

China Energy Development Announces Trading Halt Pending Inside Information Release

China Energy Development Holdings Limited has announced a trading halt on its shares effective from December 17, 2025. This decision is pending the release of an announcement related to inside information and in accordance with The Code on Takeovers and Mergers, which could have significant implications for the company’s operations and its stakeholders.

The most recent analyst rating on (HK:0228) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Energy Development Holdings Limited stock, see the HK:0228 Stock Forecast page.

China Energy Development Revises Rights Issue Timetable

China Energy Development Holdings Limited has announced a revised timetable for its proposed Rights Issue due to the need for additional time to prepare necessary documents. The updated schedule outlines key dates for trading arrangements and shareholder entitlements, impacting stakeholders by adjusting the timeline for participation and investment in the Rights Issue.

China Energy Development Holdings Limited Addresses Legal Dispute Impact

China Energy Development Holdings Limited has been involved in a legal dispute concerning convertible bonds, where an injunction order was issued by the High Court of Hong Kong against two defendants, prohibiting them from certain actions related to the bonds. The company has clarified that the injunction does not materially affect its operations or corporate actions, as it is not a party to the dispute and has taken steps to ensure compliance with the injunction order.

China Energy Development Holdings Delays Rights Issue Timetable

China Energy Development Holdings Limited has announced a delay in the timetable for its proposed rights issue due to the need for additional time to prepare and finalize necessary documents. This delay affects events subsequent to November 6, 2025, but does not impact the capital reorganization schedule. The company plans to issue a further announcement regarding the revised timetable for the rights issue as soon as possible.

China Energy Development Announces Capital Reorganisation and Bond Adjustments

China Energy Development Holdings Limited has announced the effective date for its Capital Reorganisation, which will be on November 3, 2025. This reorganisation includes adjustments to the conversion price and number of shares related to its Convertible Bonds, significantly altering the financial structure of these instruments. Shareholders are also offered a free exchange of share certificates for a limited period, which is expected to streamline the company’s shareholding structure and potentially impact its market positioning.

China Energy Development Holdings Limited Announces Auditor Change

China Energy Development Holdings Limited announced a change in its auditing firm, with ZHONGHUI ANDA CPA Limited resigning and Forvis Mazars CPA Limited being appointed as the new auditor. This strategic move is intended to enhance auditor independence and bring new perspectives, aligning with the company’s commitment to high standards of corporate governance and transparency. The change is not expected to significantly impact the company’s financial audits, and the appointment of Forvis Mazars is seen as beneficial for the company’s stakeholders.