GCL New Energy Holdings (0451) AI Stock Analysis

• Market Cap: HK$1.13B
• Dividend Yield: N/A
• Average Volume (3M): 21.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 39.42%
• EPS Growth: 56.89%
• Country: HK
• Employees: 1,075
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): -0.25
• Shares Outstanding: 1,554,322,900
• 10 Day Avg. Volume: 9,905,700
• 30 Day Avg. Volume: 21,469,259
• PEG Ratio: 0.02
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -1.41
• 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: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: HK$0.50 ▼(-31.51% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues, profitability, and high leverage. Technical indicators also suggest bearish momentum, and valuation metrics are weak due to negative earnings. These factors collectively contribute to a low stock score.

Positive Factors

Renewable Energy Focus

The company's focus on renewable energy aligns with global trends towards sustainable energy solutions, positioning it well for long-term growth as demand for clean energy continues to rise.

Stable Revenue Stream

Long-term PPAs provide a stable and predictable revenue stream, reducing volatility and enhancing financial stability, which is crucial for long-term planning and investment.

Government Incentives

Government incentives and subsidies support the company's financial performance by reducing costs and encouraging investment in renewable projects, aiding long-term growth and competitiveness.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and making it vulnerable to interest rate increases or economic downturns.

Declining Profitability

Consistent losses and declining profitability suggest operational inefficiencies and challenges in maintaining a sustainable business model, impacting long-term viability.

Poor Cash Flow Performance

Negative cash flow indicates difficulties in covering capital expenditures and financial commitments, limiting the company's ability to invest in growth and potentially leading to liquidity issues.

GCL New Energy Holdings Business Overview & Revenue Model

Company Description

GCL New Energy Holdings Limited, an investment holding company, develops, constructs, operates, and manages solar power plants in the People's Republic of China, the United States, and internationally. The company is also involved in the research and development of hydrogen and related businesses. As of December 31, 2021, it owned 47 solar power plants with an aggregate installed capacity of 1,051 megawatts. The company was formerly known as Same Time Holdings Limited and changed its name to GCL New Energy Holdings Limited in May 2014. GCL New Energy Holdings Limited was founded in 1982 and is based in Kowloon, Hong Kong.

How the Company Makes Money

GCL New Energy generates revenue primarily through the sale of electricity produced from its solar power plants. The company enters into power purchase agreements (PPAs) with utilities and other energy consumers, ensuring a steady income stream from the generated energy. Additionally, GCL New Energy may earn revenue from the sale of Renewable Energy Certificates (RECs) and by providing energy management services. Significant partnerships with local governments and energy companies also contribute to its earnings, enhancing its project financing and expanding its operational capabilities in various markets.

GCL New Energy Holdings Financial Statement Overview

Summary

The company is facing significant financial challenges, with declining revenues, profitability, and deteriorating margins. High leverage and inconsistent cash flow generation are major concerns, indicating a need for strategic improvements.

Income Statement

The company has experienced a significant decline in both revenue and profitability. The gross profit margin has reduced over the years, and the net profit margin remains negative, indicating ongoing losses. Revenue has fluctuated with a decreasing trend, particularly notable in the recent years. EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies and challenges in maintaining profitability.

Balance Sheet

The balance sheet shows a decrease in total assets and stockholders' equity over the years, with high levels of debt compared to equity, leading to a concerning debt-to-equity ratio. The equity ratio is relatively low, reflecting a heavy reliance on debt financing, which poses risks if the company cannot generate sufficient cash flow to meet its obligations. Return on equity is negative due to consistent net losses.

Cash Flow

Cash flow performance is poor, with negative free cash flow in recent periods highlighting operational challenges. The operating cash flow to net income ratio is unreliable due to negative net income, and free cash flow trends are inconsistent. This indicates difficulties in generating sufficient cash to cover capital expenditures and other financial commitments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.27B	1.11B	831.52M	929.06M	2.84B	5.02B
Gross Profit	132.46M	127.44M	380.79M	451.07M	1.78B	3.22B
EBITDA	156.00M	58.65M	195.45M	164.47M	1.99B	4.05B
Net Income	-597.98M	-424.04M	-1.17B	-1.49B	-790.27M	-1.37B
Balance Sheet
Total Assets	6.89B	6.09B	6.51B	12.16B	15.92B	45.04B
Cash, Cash Equivalents and Short-Term Investments	317.31M	284.87M	555.39M	797.13M	586.05M	1.14B
Total Debt	1.04B	451.64M	551.80M	4.52B	6.61B	29.16B
Total Liabilities	1.85B	1.26B	1.51B	6.19B	8.96B	36.50B
Stockholders Equity	1.43B	1.69B	2.06B	3.20B	4.37B	5.04B
Cash Flow
Free Cash Flow	-17.17M	-425.43M	-122.76M	533.45M	-2.37B	2.87B
Operating Cash Flow	-11.88M	-400.12M	393.28M	1.26B	602.58M	4.24B
Investing Cash Flow	1.19M	257.00M	1.57B	1.54B	381.63M	974.47M
Financing Cash Flow	-105.89M	-129.09M	-2.26B	-2.59B	-1.56B	-5.07B

GCL New Energy Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.73
• 50DMA: Negative
• 100DMA: Positive
• 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:0451, the sentiment is Positive. The current price of 0.73 is above the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.74, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.62 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:0451.

GCL New Energy Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8326	72 Outperform	HK$206.14M	5.37	9.36%	―	-40.01%	-63.23%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0987	62 Neutral	HK$323.29M	8.66	2.00%	3.88%	15.92%	―
0527	48 Neutral	HK$1.08B	-7.25	―	―	5.48%	-11.10%
1165	42 Neutral	HK$121.98M	-0.26	―	―	-21.67%	-18.64%
0295	40 Underperform	HK$239.43M	-0.45	―	―	―	―
0451	40 Underperform	HK$1.13B	-1.64	-35.49%	―	39.42%	56.89%

GCL New Energy Holdings Corporate Events

GCL New Energy Secures Photovoltaic Projects in Jiangsu

GCL New Energy Holdings Limited has announced that its subsidiary, Wuhan Xiexin, has entered into two PC Agreements with Zhejiang Xinhong for photovoltaic projects in Jiangsu Province, China. These agreements involve the construction of a 7.137 MW distributed photovoltaic project in Yangzhou and a 17.97 MW rooftop photovoltaic project in Suzhou, with total contract prices of approximately RMB16.42 million and RMB7.12 million, respectively. These transactions, classified as connected transactions under the Listing Rules, highlight the company’s ongoing efforts to strengthen its position in the renewable energy market and its strategic collaboration with related entities.

GCL New Energy Extends Service Agreements with Subsidiaries for 2025

GCL New Energy Holdings Limited has announced the continuation of its service agreements with Suzhou GCL Technology and GCL Solar Energy for 2025. These agreements, which involve operation, management, and asset management services, highlight the company’s ongoing commitment to its subsidiaries and its strategic positioning within the renewable energy sector. The transactions are classified as connected transactions under the Listing Rules, requiring reporting and annual review but exempt from independent shareholder approval.

GCL New Energy Announces Board Committee Composition

GCL New Energy Holdings Limited has announced the composition of its board committees, detailing the roles and functions of its directors. This organizational update is crucial for stakeholders as it outlines the leadership structure and governance, potentially impacting the company’s strategic direction and operational efficiency.

GCL New Energy Holdings Enhances Risk Management with New Committee

GCL New Energy Holdings Limited has established a Risk Assessment Committee to enhance its risk management framework. This committee is tasked with identifying, avoiding, and controlling risks related to significant investments, project developments, and operational and financial matters. The committee will report to the board and is supported by an office that handles daily operations and assessments, ensuring thorough preparation and implementation of internal controls.

GCL New Energy Announces Major Leadership Restructuring

GCL New Energy Holdings Limited has announced significant changes in its leadership structure, effective from November 2, 2025. These changes include the appointment of new executive directors, independent non-executive directors, and a new president, alongside various committee reassignments. The restructuring aims to enhance the company’s governance and strategic direction, potentially impacting its operational efficiency and market competitiveness.

GCL New Energy Clarifies Shareholding Interests

GCL New Energy Holdings Limited has issued a clarification announcement concerning the shareholding interests of its executive directors, Mr. Zhu Gongshan and Mr. Zhu Yufeng, and their family trust, the Asia Pacific Energy Fund Limited. This announcement addresses previous disclosures in the company’s interim and annual reports, as well as various announcements and circulars related to major transactions and share issues. The clarifications aim to ensure accurate representation of the shareholding interests of the relevant parties, which include associates, joint ventures, and other related entities controlled by the Zhu family.

GCL New Energy Clarifies Shareholding Interest Changes

GCL New Energy Holdings Limited has issued a clarification announcement regarding changes in shareholding interests related to its executive directors and associated parties. The announcement highlights that these changes, which were not previously disclosed, have triggered a disclosure obligation under Hong Kong’s Securities and Futures Ordinance. However, these changes do not impact the company’s previous shareholding disclosures, and no updates are required for past reports.