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China Everbright (HK:0257)
:0257

China Everbright (0257) AI Stock Analysis

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HK

China Everbright

(OTC:0257)

Rating:68Neutral
Price Target:
HK$4.50
▲(16.88%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 (0257) vs. iShares MSCI Hong Kong ETF (EWH)

China Everbright Business Overview & Revenue Model

Company DescriptionChina Everbright Limited (0257), a subsidiary of China Everbright Group, is a diversified financial services company based in Hong Kong. The company operates across multiple sectors including asset management, investment banking, and wealth management. It provides a wide array of financial products and services such as private equity, asset management, and investment advisory, catering to both institutional and individual clients.
How the Company Makes MoneyChina Everbright Limited generates revenue through its diversified financial services operations. The company earns income through asset management fees, investment returns, and advisory fees by managing various funds and investment portfolios. It also generates revenue from its investment banking activities, which include underwriting, mergers and acquisitions advisory, and other financial advisory services. Additionally, the company engages in proprietary trading and direct investments, further contributing to its earnings. Strategic partnerships and collaborations with other financial institutions enhance its service offerings and expand its client base, thereby boosting its revenue potential.

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
56
Neutral
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
62
Positive
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
48
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue30.26B32.09B37.32B49.90B42.93B
Gross Profit11.54B13.81B14.36B16.46B14.10B
EBITDA10.09B12.80B12.69B14.85B12.63B
Net Income3.38B4.43B4.60B6.80B6.02B
Balance Sheet
Total Assets186.03B189.18B190.60B200.24B158.19B
Cash, Cash Equivalents and Short-Term Investments7.97B8.58B10.84B15.27B10.87B
Total Debt91.67B94.62B94.72B99.13B74.98B
Total Liabilities119.61B123.66B128.00B135.89B102.64B
Stockholders Equity55.01B53.85B50.83B51.78B45.06B
Cash Flow
Free Cash Flow4.42B-1.26B-1.46B-10.21B-15.54B
Operating Cash Flow6.78B2.50B4.01B-1.56B-8.19B
Investing Cash Flow-2.16B-3.84B-6.14B-10.42B-8.25B
Financing Cash Flow-5.03B-549.38M-1.15B15.85B14.97B

China Everbright Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.85
Price Trends
50DMA
3.68
Positive
100DMA
3.49
Positive
200DMA
3.52
Positive
Market Momentum
MACD
0.08
Positive
RSI
51.24
Neutral
STOCH
46.71
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 3.85 is below the 20-day moving average (MA) of 3.87, above the 50-day MA of 3.68, and above the 200-day MA of 3.52, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 51.24 is Neutral, neither overbought nor oversold. The STOCH value of 46.71 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$9.45B7.208.42%36.29%0.22%-11.86%
74
Outperform
HK$10.30B10.377.85%4.33%-9.43%4.26%
69
Neutral
HK$3.50B5.887.24%11.24%-0.78%3.03%
68
Neutral
HK$23.65B7.006.99%4.67%-5.71%-23.74%
58
Neutral
$1.33B4.19-2.93%7.46%3.67%-51.13%
47
Neutral
$4.78B-20.47%-16.08%-0.19%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0257
China Everbright
3.82
0.06
1.51%
HK:1272
Datang Environment Industry Group Co., Ltd. Class H
1.18
0.49
71.01%
HK:1065
Tianjin Capital Environmental Protection Group Co
4.00
0.98
32.67%
HK:0895
Dongjiang Environmental Company
2.57
0.99
62.66%
HK:1330
Dynagreen Environmental Protection Group Co., Ltd. Class H
5.18
2.35
83.36%

China Everbright Corporate Events

China Everbright Completes RMB1 Billion Bond Issuance
Jun 13, 2025

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
May 29, 2025

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
May 23, 2025

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
May 23, 2025

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
May 23, 2025

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.

China Everbright Secures Approval for RMB5 Billion Medium-Term Notes
May 12, 2025

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 medium-term notes amounting to up to RMB5 billion. This approval allows the company to issue these notes in tranches over the next two years, subject to market conditions, which could impact its financial strategy and market positioning by providing additional capital for its operations.

China Everbright Announces 2025 AGM and Key Resolutions
Apr 25, 2025

China Everbright Environment Group Limited has announced its Annual General Meeting scheduled for May 29, 2025, where key resolutions will be discussed, including the approval of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of KPMG as auditor. This meeting is significant for stakeholders as it will address leadership continuity and financial strategies, potentially impacting the company’s operational focus and market positioning.

China Everbright Announces Board Change with New Non-Executive Director
Apr 17, 2025

China Everbright Environment Group Limited announced a change in its board of directors, with Mr. Pan Jianyun resigning as a non-executive director due to work arrangements, effective April 17, 2025. Ms. Qu Li has been appointed as the new non-executive director, bringing her experience as the deputy general manager of the Overseas Business Management Department of China Everbright Group. This change is expected to align with the company’s strategic goals and enhance its governance structure.

China Everbright Environment Group Reveals Board Composition
Apr 17, 2025

China Everbright Environment Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, which may impact the company’s strategic direction and governance, potentially influencing stakeholder confidence.

China Everbright Completes Issuance of 2025 Perpetual Medium-term Notes
Apr 9, 2025

China Everbright Environment Group Limited has successfully completed the issuance of its 2025 Perpetual Medium-term Notes (Series 1) in the PRC, amounting to RMB1.5 billion with an interest rate of 2.22% per annum. The proceeds from this issuance will be used to redeem the 2022 Perpetual Medium-term Notes (Series 1), indicating a strategic financial maneuver to manage its debt obligations and potentially strengthen its financial position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025