Yanchang Petroleum International Limited (0346) AI Stock Analysis

• Market Cap: HK$484.05M
• Dividend Yield: N/A
• Average Volume (3M): 468.07K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.93
• Revenue Growth: -32.19%
• EPS Growth: -70.01%
• Country: HK
• Employees: 204
• Sector: Energy
• Sector Strength: 67
• Industry: Oil & Gas Integrated
• EPS (TTM): -0.03
• Shares Outstanding: 1,100,102,800
• 10 Day Avg. Volume: 700,400
• 30 Day Avg. Volume: 468,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.50
• Price Target Upside: 13.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: HK$0.50 ▲(13.64% Upside)

The stock's strong technical indicators support a bullish outlook, despite financial performance challenges. Its moderate valuation offers some appeal, but inconsistent cash flow and profitability are concerns.

Yanchang Petroleum International Limited Business Overview & Revenue Model

Company Description

Yanchang Petroleum International Limited, an investment holding company, engages in the supply and procurement operation of oil related products in the People's Republic of China. The company operates through Exploration, Exploitation and Operation Business; and Supply and Procurement Business segments. It engages in the wholesale, retail, storage, and transportation of refined oil. The company also acquires, explores for, exploits, develops, and produces crude oil and natural gas; and provides oil related services. It owns interests in oilfield blocks located in Saskatchewan and Alberta, Canada. The company was formerly known as Sino Union Energy Investment Group Limited and changed its name to Yanchang Petroleum International Limited in May 2012. The company was incorporated in 2001 and is headquartered in Causeway Bay, Hong Kong. Yanchang Petroleum International Limited operates as a subsidiary of Yanchang Petroleum Group (Hong Kong) Co., Limited.

How the Company Makes Money

Yanchang Petroleum International Limited generates revenue through several key streams. Primarily, the company earns money from the sale of crude oil and natural gas that it explores, develops, and produces. This involves extracting these resources from its licensed fields and selling them to refineries and other buyers in the energy market. Additionally, the company engages in trading petroleum-related products, where it buys refined oil, natural gas, and petrochemical products to sell them at a profit. The company may also have partnerships and supply agreements with other energy companies, which can contribute to its earnings by ensuring consistent demand and supply of its products. Furthermore, Yanchang Petroleum International Limited offers oilfield and logistics services, providing additional revenue streams from servicing other companies in the oil and gas sector.

Yanchang Petroleum International Limited Financial Statement Overview

Summary

The company shows inconsistent revenue growth and thin profit margins. Although the balance sheet indicates some financial stability, low returns on equity and negative free cash flows highlight significant financial challenges.

Income Statement

The company has shown inconsistent revenue growth with a recent decline from 2022 to 2023 and then an increase in 2024. Gross profit margins are thin, and net profit margins have been volatile, with a significant drop in net income in 2024. EBIT and EBITDA margins reflect challenges in operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced capital structure. However, the return on equity is low, reflecting challenges in generating returns for shareholders. The equity ratio has improved over the years, indicating increased financial stability.

Cash Flow

Cash flow performance has been inconsistent, with negative free cash flow in multiple years. The operating cash flow to net income ratio is not favorable, showing that earnings are not well supported by cash operations. The free cash flow to net income ratio further highlights cash flow challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.18B	27.74B	29.94B	19.78B	27.26B
Gross Profit	254.97M	154.70M	155.59M	292.68M	87.13M
EBITDA	250.90M	888.04M	-388.06M	513.31M	-630.30M
Net Income	54.13M	217.59M	-619.10M	353.60M	-792.67M
Balance Sheet
Total Assets	2.80B	3.68B	4.52B	4.51B	2.64B
Cash, Cash Equivalents and Short-Term Investments	278.68M	226.19M	133.21M	394.13M	436.08M
Total Debt	670.76M	945.60M	1.25B	955.26M	932.16M
Total Liabilities	1.50B	2.34B	4.05B	3.34B	1.83B
Stockholders Equity	1.25B	1.29B	772.96M	1.04B	671.13M
Cash Flow
Free Cash Flow	310.81M	49.34M	-377.34M	-9.49M	-117.59M
Operating Cash Flow	375.64M	406.82M	89.14M	223.93M	-67.38M
Investing Cash Flow	-65.22M	-357.48M	-466.49M	-233.42M	-49.33M
Financing Cash Flow	-248.76M	55.38M	141.32M	-45.55M	238.28M

Yanchang Petroleum International Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 50DMA: Positive
• 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:0346, the sentiment is Positive. The current price of 0.44 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.42, and above the 200-day MA of 0.32, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0346.

Yanchang Petroleum International Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2337	70 Outperform	HK$617.93M	8.51	13.86%	2.38%	3.42%	70.99%
0353	68 Neutral	HK$318.77M	1.24	22.57%	―	-37.38%	337.64%
Sector *	65 Neutral	$15.28B	7.48	3.22%	5.33%	4.10%	-60.58%
0346	63 Neutral	HK$484.05M	9.21	4.17%	―	-32.19%	-70.01%
0228	49 Neutral	HK$413.62M	85.00	0.25%	―	-23.19%	-94.37%
3395	44 Neutral	HK$213.68M	―		―	-41.07%	22.63%
0166	41 Neutral	HK$375.90M	―	-11.40%	―	-4.27%	47.58%

Yanchang Petroleum International Limited Corporate Events

Yanchang Petroleum Issues Profit Warning Amid Canadian Losses

Yanchang Petroleum International Limited has issued a profit warning, indicating an expected loss of approximately HK$27.9 million for the first half of 2025, slightly higher than the HK$27.3 million loss recorded in the same period of 2024. This interim loss is primarily due to a significant loss from its Canadian oil and gas production business, highlighting ongoing challenges in that segment. The company is still finalizing its interim results, which are subject to adjustments, and advises shareholders and potential investors to exercise caution.

Yanchang Petroleum’s Subsidiary Declared Bankrupt, No Significant Impact on Group

Yanchang Petroleum International Limited announced the bankruptcy of its 51% indirectly owned PRC subsidiary, Yanchang Petroleum (Zhejiang FTZ) Limited, following the termination of its reorganization proceedings. The bankruptcy, however, is not expected to significantly impact the company’s current operations, performance, or financial position, as the subsidiary had already been deconsolidated from the group’s financial statements.

Yanchang Petroleum Announces Changes to Nomination Committee

Yanchang Petroleum International Limited has announced a change in the composition of its Nomination Committee, effective from July 1, 2025. Mr. Feng Yinguo will step down, and Ms. Wang Haining will join the committee. This change aligns with the amendments to the Listing Rules and the Corporate Governance Code, aiming to enhance the effectiveness and diversity of the committee and improve the company’s corporate governance practices.

Yanchang Petroleum Forms Nomination Committee to Enhance Governance

Yanchang Petroleum International Limited has established a Nomination Committee as part of its board of directors. The committee is responsible for overseeing the nomination process for board members, ensuring a diverse and independent composition. This move is aimed at strengthening corporate governance and ensuring effective leadership within the company.

Yanchang Petroleum’s AGM Resolutions Unanimously Approved

Yanchang Petroleum International Limited held its Annual General Meeting on May 30, 2025, where all proposed resolutions were unanimously approved. This includes the re-election of directors and the appointment of BDO Limited as auditors, reflecting strong shareholder support and continuity in the company’s governance structure.