Yanchang Petroleum International Limited (0346) AI Stock Analysis

• Market Cap: HK$440.04M
• Dividend Yield: N/A
• Average Volume (3M): 4.04M
• Price to Earnings (P/E): 8.1
• Beta (1Y): 0.86
• Revenue Growth: 5.20%
• EPS Growth: -75.14%
• Country: HK
• Employees: 204
• Sector: Energy
• Sector Strength: 44
• Industry: Oil & Gas Integrated
• EPS (TTM): 0.05
• Shares Outstanding: 1,100,102,800
• 10 Day Avg. Volume: 678,950
• 30 Day Avg. Volume: 4,038,550
• PEG Ratio: <0.01
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.72
• 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: 25.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$0.50 ▲(25.00%Upside)

The overall score of 55 reflects mixed financial performance with notable challenges in cash flow sustainability. Technical analysis indicates positive momentum, providing some support to the stock. Valuation is relatively fair, but the lack of dividend yield may limit appeal to certain investors.

Yanchang Petroleum International Limited Business Overview & Revenue Model

Company Description

Yanchang Petroleum International Limited (0346), a subsidiary of Shaanxi Yanchang Petroleum Group Co., Ltd., operates in the energy sector, primarily focusing on the exploration, development, and production of crude oil and natural gas. The company is engaged in the trading of oil-related products and investment in oil refineries and other energy-related projects. Yanchang Petroleum International is committed to expanding its footprint in the global energy market, leveraging its parent company's extensive resources and expertise.

How the Company Makes Money

Yanchang Petroleum International Limited generates revenue primarily through the exploration and production of crude oil and natural gas. The company sells these commodities in the global market, capitalizing on fluctuations in oil and gas prices. Additionally, the company engages in the trading of oil-related products, which includes buying and selling refined petroleum products. Key revenue streams include sales from its oil and gas production operations and income from trading activities. Yanchang Petroleum International may also enter into strategic partnerships and joint ventures to enhance its operational capabilities and market reach, contributing to its overall earnings.

Yanchang Petroleum International Limited Financial Statement Overview

Summary

Yanchang Petroleum International Limited shows mixed financial performance. The income statement reflects volatility in revenue and profitability, while the balance sheet indicates some financial stability but with limited returns on equity. Cash flow analysis reveals significant challenges, particularly in sustaining positive cash flow, which could impact future operations and growth potential.

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: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 0.4 is above the 20-day moving average (MA) of 0.40, above the 50-day MA of 0.36, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.13 is Neutral, neither overbought nor oversold. The STOCH value of 92.59 is Negative, 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
0353	68 Neutral	HK$399.81M	1.56	22.57%	―	-63.59%	22.85%
2337	68 Neutral	HK$685.34M	9.32	13.86%	2.19%	3.42%	70.99%
0228	59 Neutral	HK$620.43M	17.00	1.56%	―	-9.62%	-58.90%
Sector *	58 Neutral	HK$85.24B	3.77	-2.37%	7.52%	-4.67%	-40.97%
0346	55 Neutral	HK$440.04M	8.13	4.26%	―	5.20%	-75.14%
3395	49 Neutral	HK$243.14M	―		―	-61.42%	22.39%
0166	41 Neutral	HK$402.12M	―	-7.75%	―	-58.33%	42.53%

Yanchang Petroleum International Limited Corporate Events

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.

Yanchang Petroleum International Schedules AGM for May 2025

Yanchang Petroleum International Limited has announced its upcoming Annual General Meeting (AGM) to be held on May 30, 2025, in Hong Kong. The meeting will address several key resolutions, including the review of the company’s audited financial statements for the year ending December 31, 2024, the re-election of several directors, and the appointment of BDO Limited as the company’s auditors. This AGM is significant as it involves the re-election of multiple directors, which could impact the company’s governance and strategic direction.