China Everbright (0257) AI Stock Analysis

• Market Cap: HK$25.55B
• Dividend Yield: 5.5%
• Average Volume (3M): 19.23M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.49
• Revenue Growth: -5.71%
• EPS Growth: -23.74%
• Country: HK
• Employees: 15,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Waste Management
• EPS (TTM): 0.15
• Shares Outstanding: 6,142,975,000
• 10 Day Avg. Volume: 23,409,824
• 30 Day Avg. Volume: 19,225,221
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$4.54
• Price Target Upside: 9.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: HK$4.50 ▲(8.17% Upside)

The overall stock score reflects strong valuation and positive technical indicators, countered by weak financial performance. The low P/E ratio and strong dividend yield enhance appeal, while the financial challenges and potential technical pullback pose risks.

China Everbright Business Overview & Revenue Model

Company Description

China Everbright Limited (0257) is a prominent financial services conglomerate headquartered in Hong Kong. The company operates across various sectors, including asset management, investment banking, private equity, and principal investments. It is renowned for providing a diverse range of financial products and services, leveraging its extensive expertise to serve a wide array of clients including institutional investors, enterprises, and individual clients. China Everbright Limited is part of the larger China Everbright Group, which has significant influence and presence in the financial and investment sector in China and beyond.

How the Company Makes Money

China Everbright Limited primarily generates revenue through its comprehensive asset management services, where it earns management fees from a variety of funds and investment products it manages on behalf of clients. The company's investment banking division contributes to its earnings through fees from advisory services, underwriting, and financing deals. Additionally, its private equity and principal investments generate returns through strategic investments in various sectors, including technology, environmental protection, and consumer goods. China Everbright Limited also benefits from significant partnerships and collaborations with other financial institutions, enhancing its market reach and investment capabilities.

China Everbright Financial Statement Overview

Summary

China Everbright's financial performance shows declining revenues and margins, high leverage, and liquidity challenges. Despite stable equity growth, the company needs to address these issues to improve its financial health.

Income Statement

The income statement reveals a decline in revenue over recent years, with total revenue decreasing from HK$37.32B in 2022 to HK$30.26B in 2024. This downward trend is a concern. Gross profit margin has been relatively stable, but net profit margin has decreased due to declining net income. The EBIT and EBITDA margins have also seen a decline, indicating pressure on operational efficiency. Overall, the income statement reflects moderate financial health with significant room for improvement.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which can pose risks in volatile markets. Total debt has remained high, although stockholders' equity has seen growth. The equity ratio has improved slightly, suggesting some stability. While the company's assets are substantial, the high level of debt remains a concern. Overall, the balance sheet reveals a mixed picture with both strengths in asset base and weaknesses in leverage.

Cash Flow

Cash flow analysis indicates challenges, with negative free cash flow in most years and operating cash flow inconsistencies. The company has struggled to generate positive cash flow from operations consistently, and capital expenditures have further strained free cash flow. The cash flow statement suggests liquidity issues and the need for improved cash management strategies. Overall, cash flow performance is weak, highlighting potential liquidity risks.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.26B	32.09B	37.32B	49.90B	42.93B
Gross Profit	11.54B	13.81B	14.36B	16.46B	14.10B
EBITDA	10.09B	12.80B	12.69B	14.85B	12.63B
Net Income	3.38B	4.43B	4.60B	6.80B	6.02B
Balance Sheet
Total Assets	186.03B	189.18B	190.60B	200.24B	158.19B
Cash, Cash Equivalents and Short-Term Investments	7.97B	8.58B	10.84B	15.27B	10.87B
Total Debt	91.67B	94.62B	94.72B	99.13B	74.98B
Total Liabilities	119.61B	123.66B	128.00B	135.89B	102.64B
Stockholders Equity	55.01B	53.85B	50.83B	51.78B	45.06B
Cash Flow
Free Cash Flow	4.42B	-1.26B	-1.46B	-10.21B	-15.54B
Operating Cash Flow	6.78B	2.50B	4.01B	-1.56B	-8.19B
Investing Cash Flow	-2.16B	-3.84B	-6.14B	-10.42B	-8.25B
Financing Cash Flow	-5.03B	-549.38M	-1.15B	15.85B	14.97B

China Everbright Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.16
• 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:0257, the sentiment is Positive. The current price of 4.16 is below the 20-day moving average (MA) of 4.24, above the 50-day MA of 4.07, and above the 200-day MA of 3.62, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 78.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0257.

China Everbright Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1065	74 Outperform	$9.35B	7.25	8.42%	4.59%	0.22%	-11.86%
1330	74 Outperform	€9.75B	10.72	7.85%	6.28%	-9.43%	4.26%
1272	70 Neutral	HK$3.86B	6.48	7.24%	7.01%	-0.78%	3.03%
0257	68 Neutral	HK$25.55B	7.57	6.99%	5.50%	-5.71%	-23.74%
Sector *	58 Neutral	HK$13.63B	5.51	-2.78%	5.72%	2.29%	-57.50%
0895	47 Neutral	HK$4.88B	―	-20.47%	―	-16.08%	-0.19%

China Everbright Corporate Events

China Everbright Schedules Board Meeting for Interim Results

China Everbright Environment Group Limited has announced a board meeting scheduled for August 22, 2025, to approve the interim results for the first half of the year and consider an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market positioning and stakeholder interests.

China Everbright Completes RMB1 Billion Bond Issuance

China Everbright Environment Group Limited has successfully completed the issuance of its EEP China 2025 Bonds (Series 1), raising RMB1 billion. The bonds, which carry an interest rate of 1.85% per annum and mature in three years, are intended to repay interest-bearing loans and replenish working capital, potentially strengthening the company’s financial position and operational capabilities.

China Everbright Announces Successful AGM Resolutions

China Everbright Environment Group Limited announced the successful passing of all resolutions at its Annual General Meeting held on May 29, 2025. Key resolutions included the approval of the audited financial statements for 2024, the declaration of a final dividend, the re-election of several directors, and the reappointment of KPMG as the company’s auditor. These decisions reflect the company’s strong governance and commitment to shareholder value, potentially enhancing its market position and stakeholder confidence.

China Everbright Establishes Sustainability Committee

China Everbright Environment Group Limited has announced the establishment of a new Sustainability Committee, effective from 23 May 2025. This committee, chaired by Mr. Luan Zusheng, aims to enhance the company’s focus on sustainability practices. The appointment of independent non-executive directors to the committee highlights the company’s commitment to integrating sustainability into its operations, potentially strengthening its market position and stakeholder relationships.

China Everbright Environment Group Announces Board Composition and Governance Structure

China Everbright Environment Group Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of executive, non-executive, and independent non-executive directors, with established committees focusing on audit, risk management, nomination, remuneration, and sustainability. This announcement reflects the company’s commitment to structured governance and strategic oversight, potentially enhancing its operational efficiency and stakeholder confidence.

China Everbright Updates Nomination Committee Terms

China Everbright Environment Group Limited has updated the terms of reference for its Nomination Committee to improve corporate governance and ensure transparent and fair director nominations. The committee, formed in 2012, will continue to consist of at least three members, primarily independent non-executive directors, and will meet at least once a year to make recommendations on director appointments.