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

• Market Cap: HK$320.91M
• Dividend Yield: N/A
• Average Volume (3M): 31.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• 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)
• Action: Upgraded Date: 12/30/25
• Date: Action: Upgraded 12/30/25

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

PV glass supply-chain focus

A clear focus on PV glass and downstream deep-processing positions the company within a structural growth market: solar module demand underpins long-term volume potential. Specialized manufacturing for modules creates sticky customer relationships and technical barriers to entry versus general glass producers.

Historical profitability track record

Prior multi-year profitability shows the business model can generate margins when demand/pricing are favorable. That operational track record implies fixed costs and processes can support returns, enabling recovery if market pricing or utilization improves over the medium term.

Stable asset base and manufacturing scale

Relatively stable asset levels and a workforce of over 2,500 imply existing capacity and sunk manufacturing capability, reducing the need for heavy incremental capex to scale up. This preserves recovery optionality if demand rebounds, supporting durable production capability.

Negative Factors

Recent sustained losses and margin collapse

A shift to negative gross profit signals structural margin pressure from pricing, cost inflation, or oversupply. Sustained losses erode reserves and operational flexibility, making consistent profitability recovery dependent on durable demand improvement or meaningful cost/price recovery.

Weak and inconsistent cash generation

Negative operating and free cash flows reduce internal funding for working capital and capex, increasing reliance on external financing. Over months this raises refinancing risk and could constrain investment in efficiency or capacity needed to restore margins, pressuring medium-term operations.

Elevated leverage and shrinking equity

High debt relative to equity limits financial flexibility and raises solvency risk if earnings remain weak. Elevated leverage increases interest burden and narrows ability to absorb cyclical shocks, making sustained recovery dependent on improved margins or external capital support.

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

Financial performance is strained: profitability deteriorated into sizable losses in 2023–2024 (including negative gross profit in 2024), revenue declined in 2024, operating cash flow turned negative, and leverage is high (debt multiple times equity) with shrinking equity—raising execution and funding risk until margins and cash generation stabilize.

Income Statement

Profitability has deteriorated meaningfully: the company moved from positive earnings in 2020–2022 to sizable losses in 2023–2024, with 2024 showing negative gross profit and deeper operating losses. Revenue also declined in 2024 after modest growth in 2022–2023, pointing to a weaker demand/pricing environment. The main positive is that the business has demonstrated the ability to be profitable in prior years, but the current margin profile is pressured and volatile.

Balance Sheet

Leverage has increased sharply versus earlier years, with debt now multiple times equity (about 3.6x in 2024), which reduces financial flexibility. Equity has also trended down from 2022 to 2024 alongside losses, and returns on equity turned solidly negative in 2023–2024. A partial offset is that assets remain relatively stable year-to-year, but the balance sheet is currently riskier due to elevated leverage and weak earnings power.

Cash Flow

Cash generation is weak and inconsistent: operating cash flow swung from positive in 2022–2023 to negative in 2024, and free cash flow has been negative in most years (including a larger outflow in 2024). While 2024 free cash flow looks better relative to net loss (losses exceeded cash burn), the business is still consuming cash, which can increase reliance on external funding given the already-high leverage.

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0438, the sentiment is Negative. The current price of 1.99 is above the 20-day moving average (MA) of 1.97, below the 50-day MA of 2.06, and below the 200-day MA of 2.24, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 34.98 is Neutral, neither overbought nor oversold. The STOCH value of 15.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
0712	45 Neutral	HK$108.11M	-0.80	―	―	3.70%	-42.25%
1421	45 Neutral	HK$69.07M	-1.44	-19.05%	―	-11.09%	69.57%
0475	45 Neutral	HK$197.33M	-5.85	122.88%	―	13.38%	33.42%
0438	43 Neutral	HK$320.91M	-0.31	-52.09%	―	-29.43%	-752.95%
0757	43 Neutral	HK$289.17M	-0.49	-24.72%	―	-43.94%	-162.54%
0750	42 Neutral	HK$600.02M	-7.28	-1.39%	―	36.71%	8.15%

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

IRICO Group New Energy Warns of Wider 2025 Loss on PV Glass Price Slump

IRICO Group New Energy Company Limited has issued a profit warning, flagging that its operating revenue for 2025 is expected to fall about 11%–12% year-on-year to roughly RMB2.89–2.92 billion, while its net loss attributable to shareholders is projected to widen by about 44%–57% to RMB542–592 million. The deterioration is mainly attributed to a sharp decline in photovoltaic glass prices driven by oversupply, which offset higher sales volumes, compressed gross margins and forced the company to book inventory impairment provisions, underscoring the severe pricing pressure and competitive intensity currently weighing on China’s photovoltaic glass industry and investor sentiment toward the group.

The most recent analyst rating on (HK:0438) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on IRICO Group New Energy Co. Ltd. Class H stock, see the HK:0438 Stock Forecast page.

IRICO Group New Energy Appoints Veteran Executive as Deputy General Manager

IRICO Group New Energy Company Limited has appointed Mr. Zhang Jikui as deputy general manager of the company, effective 28 January 2026, strengthening its senior management team. Mr. Zhang, 53, has been with the group since 1990 and brings extensive experience across key subsidiaries and functions, including equipment management, intelligent manufacturing, big data applications, industrial intelligent technology, and photovoltaic operations, reflecting a promotion of long-serving, technically focused leadership that may support the group’s ongoing operational and technological development.

The most recent analyst rating on (HK:0438) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on IRICO Group New Energy Co. Ltd. Class H stock, see the HK:0438 Stock Forecast page.