China Energy Development Holdings Limited (0228) AI Stock Analysis

• Market Cap: HK$386.25M
• Dividend Yield: N/A
• Average Volume (3M): 147.43K
• Price to Earnings (P/E): 94.6
• Beta (1Y): 0.53
• 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: 304,133,600
• 10 Day Avg. Volume: 92,175
• 30 Day Avg. Volume: 147,431
• 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: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily impacted by financial performance challenges, including revenue decline and cash flow volatility. Technical indicators suggest a bearish trend, and the high P/E ratio indicates overvaluation. These factors collectively result in a lower stock score.

China Energy Development Holdings Limited Business Overview & Revenue Model

Company Description

China Energy Development Holdings Limited (0228) is a Hong Kong-based investment holding company primarily engaged in the exploration, development, and production of oil and natural gas. The company operates through its core sectors, which include oil and gas exploration and production, as well as the trading of natural resources. China Energy Development Holdings Limited focuses on leveraging its strategic assets and expertise to optimize its operations within the energy sector.

How the Company Makes Money

China Energy Development Holdings Limited generates revenue primarily through the exploration and production of oil and natural gas. The company extracts these resources from its owned or leased properties and sells them in the open market. Its revenue model is heavily reliant on the global demand and pricing of oil and gas, which are influenced by market conditions, geopolitical factors, and regulatory environments. Additionally, the company may engage in trading activities involving natural resources, which also contribute to its income. Significant partnerships with other energy companies or stakeholders in the industry can enhance its operational capabilities and market reach, thereby impacting its revenue streams.

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: 0.03
• 50DMA: Positive
• 100DMA: Negative
• 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 0.03 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.35, and below the 200-day MA of 1.77, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 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	70 Outperform	HK$911.87M	6.56	4.05%	―	-12.48%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0611	60 Neutral	HK$1.15B	9.73	―	―	―	―
2337	55 Neutral	HK$647.89M	17.76	7.01%	2.30%	-13.08%	-43.83%
0346	53 Neutral	HK$445.54M	8.16	4.17%	―	-32.19%	-70.01%
0228	49 Neutral	HK$386.25M	94.59	0.25%	―	-23.19%	-94.80%
0451	40 Underperform	$1.18B	-1.71	-35.49%	―	39.42%	56.89%

China Energy Development Holdings Limited Corporate Events

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.

China Energy Development Holdings EGM Resolutions Passed, Capital Reorganisation and Rights Issue Announced

China Energy Development Holdings Limited announced that all resolutions at their Extraordinary General Meeting (EGM) were passed, including the Capital Reorganisation and amendments to the company’s memorandum and articles of association. The Capital Reorganisation, which includes share consolidation, capital reduction, and share subdivision, is subject to court confirmation. The company plans a Rights Issue, offering one Rights Share for every two Adjusted Shares at HK$1.57 per share, with shares trading on an ex-right basis starting 10 November 2025.

China Energy Development Announces Capital Reorganization Plan

China Energy Development Holdings Limited has announced an extraordinary general meeting to discuss and potentially approve a capital reorganization plan. This plan involves consolidating shares, reducing the par value of shares, and increasing the authorized share capital, which could impact the company’s financial structure and shareholder value.

China Energy Development Holdings Reports Decline in Interim Results

China Energy Development Holdings Limited reported a significant decline in its financial performance for the first half of 2025. The company’s revenue decreased by 28.3% to HK$118,833,000, while its profit attributable to owners dropped by 67.8% to HK$10,823,000. This downturn reflects challenges in the energy sector, impacting the company’s profitability and market positioning.

China Energy Development Announces Capital Reorganisation and Rights Issue

China Energy Development Holdings Limited announced a proposed capital reorganisation involving share consolidation, capital reduction, and share subdivision, aimed at restructuring its share capital. Additionally, the company plans a rights issue to raise approximately HK$238.7 million, which will be used to bolster its capital reserves and support business opportunities in the natural gas sector in China.

China Energy Development Holdings to Review Interim Results and Dividend

China Energy Development Holdings Limited has announced a board meeting scheduled for August 28, 2025, to discuss and approve the interim results for the first half of 2025 and consider the declaration of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.