GCL New Energy Holdings (0451) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: N/A
• Average Volume (3M): 21.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.65
• 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: 4.57
• Enterprise Value/Revenue: 4.15
• Enterprise Value/Gross Profit: 39.65
• Enterprise Value/Ebitda: 33.67
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 40 Underperform
• Price Target: HK$0.50 ▼(-30.56% 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.

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 Holdings generates revenue primarily through the sale of electricity produced by its solar power plants. The company enters into long-term power purchase agreements (PPAs) with utility companies and other large-scale energy consumers, ensuring a stable revenue stream. Additionally, GCL New Energy benefits from government incentives and subsidies aimed at promoting renewable energy adoption. The company may also engage in the sale of carbon credits, further contributing to its income. Strategic partnerships and joint ventures with other energy firms and financial institutions facilitate the expansion and optimization of its solar projects, enhancing overall profitability.

GCL New Energy Holdings Financial Statement Overview

Summary

GCL New Energy Holdings is facing significant financial challenges, with declining revenues, profitability, and deteriorating margins. The company has a high debt-to-equity ratio and negative cash flow, indicating operational inefficiencies and financial instability.

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: Neutral
• Last Price: 0.72
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0451, the sentiment is Neutral. The current price of 0.72 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.77, and above the 200-day MA of 0.51, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 10.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	74 Outperform	HK$206.14M	2.47	23.45%	―	34.44%	83.60%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0987	60 Neutral	HK$330.81M	8.86	2.00%	3.79%	15.92%	―
0527	48 Neutral	HK$1.30B	―	―	―	5.48%	-11.10%
0295	42 Neutral	HK$269.36M	―	―	―	―	―
0451	40 Underperform	$1.15B	―	-35.49%	―	39.42%	56.89%
1165	39 Underperform	$116.89M	―	―	―	-21.67%	-18.64%

GCL New Energy Holdings Corporate Events

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.

The most recent analyst rating on (HK:0451) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on GCL New Energy Holdings stock, see the HK:0451 Stock Forecast page.

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.

The most recent analyst rating on (HK:0451) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on GCL New Energy Holdings stock, see the HK:0451 Stock Forecast page.

GCL New Energy Reports Increased Revenue but Faces Growing Losses in H1 2025

GCL New Energy Holdings Limited reported its interim financial results for the six months ended June 30, 2025, showing a significant increase in revenue to RMB 654 million from RMB 496 million in the previous year. However, the company also reported a substantial loss attributable to owners of RMB 348 million, which has doubled compared to the previous period, indicating financial challenges despite revenue growth.

The most recent analyst rating on (HK:0451) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on GCL New Energy Holdings stock, see the HK:0451 Stock Forecast page.

GCL New Energy Issues Profit Warning Amidst Increased Indemnification Costs

GCL New Energy Holdings Limited has issued a profit warning, indicating an expected net loss of approximately RMB250 million for the first half of 2025, compared to a net loss of RMB74 million in the same period of 2024. This significant increase in net loss is attributed to a one-off provision of indemnification related to previously disposed solar power plant projects, which includes rectification costs and tax indemnities. The announcement highlights the financial challenges faced by the company due to these provisions, impacting its operational results and potentially affecting stakeholder confidence.

GCL New Energy Holdings to Announce Interim Results and Dividend Consideration

GCL New Energy Holdings Limited has announced a board meeting scheduled for August 27, 2025, to discuss and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the declaration or payment of an interim dividend, reflecting the company’s ongoing financial strategies and potential shareholder returns.

GCL New Energy Holdings Updates on 2022 Placing and 2024 Share Option Scheme

GCL New Energy Holdings Limited announced additional details regarding the use of proceeds from its 2022 Placing, which raised approximately HK$310 million. The funds were fully utilized by the end of 2024, primarily for investment and development in natural gas, LNG, and integrated energy projects, as well as for general working capital. Additionally, the company provided further information on its 2024 Share Option Scheme, specifying the eligibility of participants, which includes employees and certain service providers, while excluding financial advisers and professional service providers.

GCL New Energy Updates Shareholding Structure and Future Investment Plans

GCL New Energy Holdings Limited announced an update on its shareholding interest, revealing that Mr. Zhu Gongshan holds a significant portion of the company’s voting shares through Asia Pacific Energy Fund Limited. Mr. Zhu has expressed confidence in the company’s future prospects and may consider further investment in its shares, contingent on regulatory compliance and market conditions. The company plans to update the market following necessary filings to ensure transparency in its disclosures.