China Everbright (0257) AI Stock Analysis

• Market Cap: HK$30.04B
• Dividend Yield: 4.91%
• Average Volume (3M): 16.12M
• Price to Earnings (P/E): 9.6
• Beta (1Y): 0.40
• Revenue Growth: -7.82%
• EPS Growth: -23.62%
• Country: HK
• Employees: 15,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Waste Management
• EPS (TTM): 0.36
• Shares Outstanding: 6,142,975,000
• 10 Day Avg. Volume: 10,739,244
• 30 Day Avg. Volume: 16,121,288
• PEG Ratio: -0.30
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.79
• P/FCF Ratio: 5.38
• 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$5.68
• Price Target Upside: 16.16% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$5.50 ▲(12.47% Upside)

The overall stock score of 66 reflects a balance between mixed financial performance and favorable technical and valuation indicators. The company's financials show challenges with declining revenues and high leverage, but the technical analysis indicates strong market momentum. The valuation suggests potential undervaluation with an attractive dividend yield, making it appealing for value investors.

Positive Factors

Stable Equity Growth

Despite high leverage, the growth in stockholders' equity indicates some stability and potential for future financial resilience.

Diverse Revenue Streams

Diverse revenue streams across financial services provide a robust business model, reducing dependency on any single income source.

Strong Market Presence

Being part of a larger influential group enhances market presence and access to resources, supporting long-term growth and competitiveness.

Negative Factors

Declining Revenue

The declining revenue trend poses a risk to long-term growth, indicating challenges in maintaining market share or pricing power.

High Leverage

High leverage increases financial risk, especially in volatile markets, potentially limiting strategic flexibility and increasing interest costs.

Weak Cash Flow

Consistent negative free cash flow highlights liquidity challenges, which can hinder the company's ability to invest in growth opportunities.

China Everbright Business Overview & Revenue Model

Company Description

China Everbright Environment Group Limited, provides environmental solutions worldwide. The company's Environmental Energy Project Construction and Operation segment constructs and operates food waste and leachate treatment, sludge treatment and disposal, methane-to-energy, fecal treatment, fly ash landfill, medical waste treatment, and solid waste treatment projects, as well as waste-to-energy plants. Its Greentech Project Construction and Operation segment constructs and operates integrated biomass utilization, hazardous and solid waste treatment, and solar energy and wind power projects, as well as offers environmental remediation services. The company's Environmental Water Project Construction and Operation segment constructs, upgrades, and operates waste water treatment, water supply, reusable water and sludge harmless treatment, sponge city construction, river-basin ecological restoration, waste water source heat pump, and leachate treatment projects. This segment also researches and develops water environment technologies and engineering projects. Its Others segment conducts environmental protection technology research and development projects; provides environmental related technological, and protection project equipment construction and installation services; designs environmental protection projects; and sells related equipment. This segment also offers waste sorting, renewable resources utilization, and sanitation operation services; sells energy-saving street lamps; and provides energy management contract projects. It also operates biomass electricity and heat cogeneration projects; and collects and treats municipal wastes. The company was formerly known as China Everbright International Limited and changed its name to China Everbright Environment Group Limited in September 2020. The company was incorporated in 1961 and is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

China Everbright generates revenue through multiple channels, primarily from its investment activities. Key revenue streams include management fees from its private equity and public market funds, performance fees based on the success of its investments, and returns from its direct investments in projects related to environmental protection and infrastructure. The company also earns income from advisory services provided to clients in sectors aligned with its investment strategy. Significant partnerships with government entities and private sector firms enhance its project portfolio and revenue potential, while its focus on sustainable investments positions it favorably in the growing green finance market.

China Everbright Financial Statement Overview

Summary

China Everbright shows a mixed financial performance. The income statement reflects declining revenues and margins, the balance sheet indicates high leverage but stable equity growth, and the cash flow statement highlights liquidity challenges. The company needs to address revenue decline and improve cash flow management to strengthen its financial position and reduce financial risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.95B	30.26B	32.09B	37.32B	49.90B	42.93B
Gross Profit	11.82B	11.54B	13.81B	14.36B	16.46B	14.10B
EBITDA	10.82B	10.09B	12.80B	12.69B	14.85B	12.63B
Net Income	3.13B	3.38B	4.43B	4.60B	6.80B	6.02B
Balance Sheet
Total Assets	192.23B	186.03B	189.18B	190.60B	200.24B	158.19B
Cash, Cash Equivalents and Short-Term Investments	8.76B	7.97B	8.58B	10.84B	15.27B	10.87B
Total Debt	93.49B	91.67B	94.62B	94.72B	99.13B	74.98B
Total Liabilities	121.69B	119.61B	123.66B	128.00B	135.89B	102.64B
Stockholders Equity	58.47B	55.01B	53.85B	50.83B	51.78B	45.06B
Cash Flow
Free Cash Flow	5.32B	4.42B	-1.26B	-1.46B	-10.21B	-15.54B
Operating Cash Flow	6.06B	6.78B	2.50B	4.01B	-1.56B	-8.19B
Investing Cash Flow	-1.88B	-2.16B	-3.84B	-6.14B	-10.42B	-8.25B
Financing Cash Flow	-2.08B	-5.03B	-549.38M	-1.15B	15.85B	14.97B

China Everbright Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.89
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 4.89 is below the 20-day moving average (MA) of 4.95, below the 50-day MA of 4.92, and above the 200-day MA of 4.08, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.76 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0257.

China Everbright Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1065	78 Outperform	HK$9.73B	7.52	8.29%	4.31%	1.66%	-6.08%
1272	72 Outperform	HK$3.35B	7.19	5.55%	7.88%	-4.41%	-34.31%
0257	66 Neutral	HK$30.04B	9.60	6.19%	4.91%	-7.82%	-23.62%
1381	66 Neutral	―	―	―	―	-15.70%	-13.49%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1330	62 Neutral	HK$9.63B	9.59	8.62%	6.23%	-0.91%	18.25%
0895	38 Underperform	HK$5.15B	-2.30	-27.89%	―	-3.21%	-34.90%

China Everbright Corporate Events

China Everbright’s Asset-Backed Notes Gain Approval

China Everbright Environment Group Limited announced that its subsidiary, Everbright Environmental Protection (China) Limited, has received approval from the National Association of Financial Market Institutional Investors for the registration of asset-backed notes worth up to RMB4 billion. This approval marks a significant step in the company’s financial strategy, although the issuance of these notes is not guaranteed, and stakeholders are advised to exercise caution.

China Everbright Seeks RMB15 Billion Debt Financing Approval

China Everbright Environment Group Limited has applied to the National Association of Financial Market Institutional Investors for the registration of debt financing instruments worth up to RMB15 billion. The issuance will depend on market conditions and will be traded in the China Interbank Bond Market. The company has received an ‘AAA’ credit rating, indicating strong financial health, but the issuance is subject to approval and market conditions.

China Everbright Proposes RMB Share Listing on SZSE

China Everbright Environment Group Limited has announced a proposal to issue and list RMB shares on the Shenzhen Stock Exchange. This move is contingent on market conditions, shareholder approval, and regulatory permissions, and aims to issue up to 800 million shares, representing 11.52% of the company’s enlarged share capital, potentially impacting its market presence and shareholder value.

China Everbright Forms Joint Ventures for Uzbekistan Waste-to-Energy Projects

China Everbright Environment Group Limited has announced the formation of joint ventures with Maxsus and CR No.17 Second Engineering to establish two project companies in Uzbekistan. These companies will focus on the investment, design, construction, operation, and maintenance of a waste-to-energy project, with China Everbright International holding an 88% stake in each. The financial results of these joint ventures will be consolidated into China Everbright’s financial statements, enhancing its presence in the sustainable energy sector.

China Everbright Seeks Approval for RMB4 Billion Asset-Backed Notes Issuance

China Everbright Environment Group Limited has announced its application to the National Association of Financial Market Institutional Investors for the registration and proposed issuance of asset-backed notes worth up to RMB4 billion. The issuance, aimed at institutional investors in the national inter-bank bond market, will be conducted by its subsidiary, Everbright Environmental Protection (China) Limited, and is subject to market conditions and approval by the NAFMII. An underwriting agreement has been signed with Everbright Securities to facilitate this process, with the terms deemed fair and beneficial for the company and its shareholders.

China Everbright Announces Changes in Risk Management Committee

China Everbright Environment Group Limited has announced a change in its Risk Management Committee, with Ms. Li Shuk Yin, Edwina stepping down and Mr. Kang Guoming being appointed as a new member, effective from October 10, 2025. This change reflects the company’s ongoing efforts to strengthen its governance and risk management practices, potentially impacting its strategic direction and stakeholder confidence.

China Everbright Announces Board Composition and Roles

China Everbright Environment Group Limited announced the composition of its board of directors and the roles within its five established board committees. This update reflects the company’s commitment to structured governance and may influence its strategic direction and stakeholder engagement, particularly in areas like sustainability and risk management.