Yanchang Petroleum International Limited (0346) AI Stock Analysis

• Market Cap: HK$407.04M
• Dividend Yield: N/A
• Average Volume (3M): 220.05K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.98
• Revenue Growth: -32.19%
• EPS Growth: -70.01%
• Country: HK
• Employees: 204
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Integrated
• EPS (TTM): -0.03
• Shares Outstanding: 1,100,102,800
• 10 Day Avg. Volume: 136,450
• 30 Day Avg. Volume: 220,050
• PEG Ratio: -0.07
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00980
• P/FCF Ratio: 0.92
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.37 ▼(-3.42% Downside)

The overall stock score of 51 reflects significant challenges in financial performance, particularly in cash flow sustainability, and bearish technical indicators. The stock's valuation is a relative strength, suggesting potential undervaluation, but the lack of a dividend yield and absence of earnings call data limit the overall appeal.

Positive Factors

Balanced Capital Structure

A moderate debt-to-equity ratio indicates a balanced capital structure, which can provide financial stability and flexibility for future investments.

Improved Equity Ratio

An improving equity ratio suggests enhanced financial stability, which can support long-term growth and resilience against market fluctuations.

Diverse Revenue Streams

Diverse revenue streams from exploration, trading, and services reduce dependency on a single market segment, enhancing resilience and growth potential.

Negative Factors

Volatile Revenue Growth

Volatile revenue growth can hinder long-term planning and investment, making it challenging to sustain operations and achieve consistent profitability.

Cash Flow Challenges

Inconsistent cash flow performance, particularly negative free cash flow, can limit the company's ability to invest in growth opportunities and meet financial obligations.

Thin Profit Margins

Thin and volatile profit margins indicate challenges in operational efficiency and pricing power, potentially impacting long-term profitability and competitiveness.

Yanchang Petroleum International Limited Business Overview & Revenue Model

Company Description

Yanchang Petroleum International Limited (0346) is a Hong Kong-based company primarily engaged in the oil and gas sector. It focuses on upstream activities, including exploration, development, and production of oil and gas resources, mainly in China. The company also involves itself in various oil-related services and products, contributing to its diversified portfolio in the energy market.

How the Company Makes Money

Yanchang Petroleum International Limited generates revenue primarily through the exploration and production of oil and gas resources. The company's key revenue streams include the sale of crude oil and natural gas, as well as income derived from joint ventures and partnerships in oil fields. Significant contracts for oil extraction and production services, along with strategic alliances with other energy companies, also contribute to its earnings. Additionally, fluctuations in global oil prices can significantly impact the company's revenue, making its financial performance closely tied to market conditions.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.41B	29.18B	27.74B	29.94B	19.78B	27.26B
Gross Profit	105.38M	254.97M	154.70M	155.59M	292.68M	87.13M
EBITDA	431.42M	250.90M	888.04M	-388.06M	513.31M	-630.30M
Net Income	52.61M	54.13M	217.59M	-199.51M	353.60M	-792.67M
Balance Sheet
Total Assets	2.91B	2.80B	3.68B	4.52B	4.51B	2.64B
Cash, Cash Equivalents and Short-Term Investments	240.01M	278.68M	226.19M	436.62M	394.13M	436.08M
Total Debt	810.71M	670.76M	945.60M	1.25B	955.26M	932.16M
Total Liabilities	1.57B	1.50B	2.34B	4.05B	3.34B	1.83B
Stockholders Equity	1.29B	1.25B	1.29B	772.96M	1.04B	671.13M
Cash Flow
Free Cash Flow	-356.85M	310.81M	49.34M	-377.34M	-9.49M	-117.59M
Operating Cash Flow	-12.32M	375.64M	406.82M	89.14M	223.93M	-67.38M
Investing Cash Flow	-44.33M	-65.22M	-357.48M	-466.49M	-233.42M	-49.33M
Financing Cash Flow	-2.21M	-248.76M	55.38M	141.32M	-45.55M	238.28M

Yanchang Petroleum International Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Negative
• 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:0346, the sentiment is Positive. The current price of 0.38 is above the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.40, and above the 200-day MA of 0.37, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 72.62 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
0353	68 Neutral	HK$345.78M	1.35	22.21%	―	-5.34%	400.80%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0228	59 Neutral	HK$401.46M	89.19	0.25%	―	-23.19%	-94.80%
2337	55 Neutral	HK$651.63M	17.86	7.01%	2.37%	-13.08%	-43.83%
0346	51 Neutral	HK$407.04M	7.74	4.17%	―	-32.19%	-70.01%
0166	47 Neutral	HK$410.86M	-3.33	-11.40%	―	-4.27%	47.58%
3395	37 Underperform	HK$187.89M	-1.33	―	―	-9.85%	20.71%

Yanchang Petroleum International Limited Corporate Events

Yanchang Petroleum Delays Circular Dispatch for Connected Transactions

Yanchang Petroleum International Limited has announced a delay in the dispatch of a circular related to its continuing connected transactions, including the Supply and Sales Agreements. The circular, initially scheduled for release by December 4, 2025, will now be dispatched by December 8, 2025, due to additional time required for finalizing certain information. This delay may impact stakeholders awaiting details on the proposed annual caps and recommendations from the Independent Board Committee.

Yanchang Petroleum International Secures New Supply and Sales Agreements

Yanchang Petroleum International Limited has entered into new supply and sales agreements with Henan Yanchang and Yanchang Petroleum Group to continue the supply of refined oil and by-products until 2028. These agreements are considered continuing connected transactions under the Hong Kong Listing Rules, requiring independent shareholder approval due to the significant shareholding of Yanchang Petroleum Group, which will abstain from voting.