IRICO Group New Energy Co. Ltd. Class H (0438) AI Stock Analysis

• Market Cap: HK$423.17M
• Dividend Yield: N/A
• Average Volume (3M): 31.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -29.43%
• EPS Growth: -752.95%
• Country: HK
• Employees: 2,548
• Sector: Technology
• Sector Strength: 88
• Industry: Solar
• EPS (TTM): -1.80
• Shares Outstanding: 96,248,670
• 10 Day Avg. Volume: 29,170
• 30 Day Avg. Volume: 31,527
• PEG Ratio: -0.02
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.16
• P/FCF Ratio: -0.51
• 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: 43 Neutral
• Price Target: HK$2.00 ▲(0.50% Upside)

The score is held down primarily by weak financial performance (recent losses, negative cash flow, and high leverage). Technical indicators also point to soft momentum, while valuation is hard to assess favorably given negative earnings and no dividend yield data.

Positive Factors

Governance Enhancement

The establishment of a Remuneration and Appraisal Committee enhances governance by aligning compensation with performance, promoting transparency, and ensuring fair practices, which can lead to improved management quality and long-term strategic alignment.

Strategic Oversight

By enhancing strategic oversight through a dedicated committee, the company aims to improve investment planning and decision-making, aligning with long-term goals and potentially increasing operational efficiency and market competitiveness.

Board and Governance Structure

The strategic shift in governance structure, including board composition changes, can lead to improved decision-making processes, better alignment with corporate strategy, and enhanced stakeholder confidence, supporting long-term business sustainability.

Negative Factors

Financial Performance

The company's recent financial performance, marked by significant losses and negative cash flow, indicates challenges in maintaining profitability and financial stability, which may hinder long-term growth and operational resilience.

High Leverage

Elevated leverage levels reduce financial flexibility and increase funding risks, potentially limiting the company's ability to invest in growth opportunities and manage economic downturns effectively.

Cash Flow Challenges

Negative operating cash flow suggests that the company is struggling to generate sufficient cash internally, which may lead to increased reliance on external financing and impact its ability to sustain operations and invest in future growth.

IRICO Group New Energy Co. Ltd. Class H Business Overview & Revenue Model

Company Description

IRICO Group New Energy Company Limited, together with its subsidiaries, engages in the research and development, production, and sale of new energy photovoltaic glass in the People's Republic of China and internationally. The company also offers solar cells and components. In addition, it is involved in photovoltaic power generation. The company was formerly known as IRICO Group Electronics Company Limited and changed its name to IRICO Group New Energy Company Limited in January 2016. The company was founded in 2004 and is headquartered in Xianyang, the People's Republic of China.

How the Company Makes Money

IRICO Group New Energy Co. Ltd. generates revenue primarily through the production and sale of solar photovoltaic products, including solar modules and cells. The company capitalizes on the growing demand for renewable energy by supplying solar products to a diverse range of clients, including utility companies, commercial enterprises, and residential customers. Additionally, IRICO Group is involved in the LCD segment, manufacturing display products that contribute to its overall revenue. The company's financial performance is also influenced by strategic partnerships and investments in research and development to enhance product efficiency and expand its market presence.

IRICO Group New Energy Co. Ltd. Class H Financial Statement Overview

Summary

The company's financial performance is weak, with negative net income and gross profit, high leverage, and critical cash flow issues. These factors indicate poor financial health and stability.

Income Statement

The income statement reveals a concerning trend with negative net income and gross profit in the latest year. The company experienced declining gross and EBIT margins, indicating deteriorating profitability. Revenue growth was present over the years but was insufficient to offset increasing costs, resulting in negative net profit margins.

Balance Sheet

The balance sheet shows high leverage with a significant debt-to-equity ratio, indicating financial risk. However, the company maintains a solid equity ratio, suggesting some stability in asset financing. Despite the high debt levels, the stockholders' equity remains positive, yet declining over the years.

Cash Flow

The cash flow analysis highlights a critical issue with zero operating, investing, and free cash flows in the latest year, pointing to liquidity challenges. The absence of free cash flow growth and a lack of operating cash flow to net income ratio showcases weak cash management and potential sustainability concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.76B	3.28B	3.15B	2.47B	2.07B	2.52B
Gross Profit	-393.75M	-95.22M	217.70M	362.85M	448.32M	577.30M
EBITDA	-280.79M	-7.65M	85.47M	289.17M	288.13M	325.83M
Net Income	-675.85M	-375.95M	―	89.23M	164.43M	219.66M
Balance Sheet
Total Assets	8.89B	8.78B	8.84B	6.38B	5.13B	4.98B
Cash, Cash Equivalents and Short-Term Investments	880.78M	399.54M	950.93M	409.09M	737.99M	718.24M
Total Debt	6.37B	5.36B	5.32B	2.53B	1.66B	1.91B
Total Liabilities	7.77B	7.30B	7.04B	4.46B	3.21B	3.24B
Stockholders Equity	1.12B	1.48B	1.80B	1.92B	1.92B	1.75B
Cash Flow
Free Cash Flow	-1.31B	-1.00B	-664.34M	-456.07M	-635.80M	138.49M
Operating Cash Flow	-979.34M	-513.25M	276.96M	89.23M	-537.90M	185.60M
Investing Cash Flow	-315.95M	-474.69M	-925.71M	-508.40M	197.94M	229.13M
Financing Cash Flow	1.10B	409.67M	1.19B	594.99M	358.25M	-166.03M

IRICO Group New Energy Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0438, the sentiment is Positive. The current price of 1.99 is below the 20-day moving average (MA) of 2.04, below the 50-day MA of 2.14, and below the 200-day MA of 2.26, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.97 is Neutral, neither overbought nor oversold. The STOCH value of 89.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0438.

IRICO Group New Energy Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
1421	53 Neutral	HK$78.41M	-2.92	-19.05%	―	-11.09%	69.57%
0475	46 Neutral	HK$189.56M	-10.04	―	―	13.38%	33.42%
0438	43 Neutral	HK$423.17M	-0.57	-46.12%	―	-29.43%	-752.95%
0750	42 Neutral	HK$617.67M	-9.92	-1.39%	―	36.71%	8.15%
0712	40 Underperform	HK$118.71M	-2.39	―	―	3.70%	-42.25%
0757	39 Underperform	HK$265.90M	-1.05	-24.72%	―	-43.94%	-162.54%

IRICO Group New Energy Co. Ltd. Class H Corporate Events

IRICO Group New Energy Co. Ltd. Establishes Remuneration and Appraisal Committee

IRICO Group New Energy Co. Ltd. has established a Remuneration and Appraisal Committee to enhance transparency and formalize procedures for determining the remuneration of directors and senior management. This move is aimed at aligning with corporate governance standards and ensuring fair compensation practices. The committee, led by an independent non-executive director, will propose remuneration policies, review compensation packages, and ensure that all compensation arrangements are fair and reasonable, considering industry standards and company performance.

IRICO Group New Energy Enhances Strategic Oversight with New Committee Rules

IRICO Group New Energy Co. Ltd. has established Terms of Reference and Organizational Rules for its Strategy Committee to improve strategic development, investment planning, and decision-making processes. The Committee will review and assess major investments and development plans, ensuring alignment with the company’s long-term goals and enhancing operational efficiency.

IRICO Group New Energy Co. Ltd. Announces Governance Changes Post-EGM

IRICO Group New Energy Co. Ltd. held an Extraordinary General Meeting (EGM) on October 15, 2025, where shareholders approved a special resolution to amend the Articles of Association and Relevant Rules of Procedure. The meeting also resulted in the abolishment of the supervisory committee, the resignation of a non-executive director, and the election of an employee director, indicating a strategic shift in the company’s governance structure.

IRICO Group New Energy Announces Board Composition and Roles

IRICO Group New Energy Co. Ltd. has announced the composition of its board of directors, detailing the roles and committee memberships of each director. This announcement provides clarity on the governance structure of the company, which may influence its strategic direction and operational decisions, impacting stakeholders and potentially affecting its market positioning.

IRICO Group New Energy Co. Ltd. Forms Nomination Committee to Enhance Governance

IRICO Group New Energy Co. Ltd. has established a Nomination Committee to enhance the director appointment process and ensure an orderly succession plan. The Committee, primarily composed of independent non-executive directors, is tasked with reviewing the board’s structure, identifying qualified individuals for board membership, and promoting diversity. This initiative aims to align the board’s composition with the company’s corporate strategy and improve governance.

IRICO Group New Energy Enhances Audit Committee Governance

IRICO Group New Energy Co. Ltd. has established new terms of reference and organizational rules for its Audit Committee to enhance financial oversight and risk management. The committee, composed of non-executive and independent directors, is tasked with supervising financial disclosures, auditing processes, and maintaining the independence and quality of external audits, thereby strengthening the company’s governance and transparency.