GCL New Energy Holdings (0451) AI Stock Analysis

• Market Cap: HK$2.14B
• Dividend Yield: N/A
• Average Volume (3M): 21.47M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 39.42%
• EPS Growth: 56.89%
• Country: HK
• Employees: 1,075
• Sector: Utilities
• Sector Strength: 65
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$1.50 ▲(53.06% Upside)

The score is weighed down primarily by weak financial performance (declining profitability, high leverage, and negative free cash flow). Technicals are supportive in the near term (price above key averages, positive MACD) but are tempered by overbought readings (RSI/Stoch). Valuation is constrained by losses (negative P/E) and the absence of a dividend yield.

Positive Factors

Stable revenue underpinned by PPAs

Long-term PPAs provide predictable, contract-backed cash flows that support project financing and operational continuity. This reduces revenue volatility from spot markets, enabling multi-year planning, debt servicing and the ability to fund new project construction over a 2–6 month horizon and beyond.

Integrated renewable energy value chain

Participation across generation, storage and services creates vertical integration advantages: capture more margin, optimize asset dispatch, and offer bundled solutions. This structural positioning supports resilience to market shifts and strengthens competitive differentiation over the medium term.

Recent reported revenue growth metric

A large reported revenue growth rate indicates ramping asset capacity or stronger contract wins, reflecting demand for renewable capacity. If driven by new commissioned projects and contracted sales, this trend supports scale economies and long-term revenue base expansion across upcoming reporting periods.

Negative Factors

Negative free cash flow and weak cash generation

Persistent negative free cash flow undermines the firm's ability to fund capital expenditures, maintain projects, or service debt without external financing. Over months this limits reinvestment, increases reliance on raises or refinancing, and elevates execution risk on new project development.

High leverage and low equity ratio

Heavy debt reliance reduces financial flexibility and raises refinancing and interest burden risks. In a capital-intensive renewables business, a weak equity base constrains growth options, heightens vulnerability to rate or cash-flow shocks, and can force dilutive or costly capital raises.

Ongoing losses and deteriorating margins

Sustained negative margins indicate structural profitability issues—either pricing, cost or operational inefficiencies. Continued losses erode equity, hinder access to lower-cost capital, and make it harder to fund maintenance or expansion, posing long-term viability concerns absent margin recovery.

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: 0.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.98 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.79, and above the 200-day MA of 0.59, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 83.53 is Negative, neither overbought nor oversold. The STOCH value of 87.34 is Negative, 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$196.32M	5.41	9.36%	―	-40.01%	-63.23%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0987	62 Neutral	HK$328.31M	8.79	2.00%	3.70%	15.92%	―
0451	48 Neutral	HK$2.14B	-3.10	-35.49%	―	39.42%	56.89%
0527	48 Neutral	HK$1.03B	-7.13	―	―	5.48%	-11.10%
1165	42 Neutral	HK$121.98M	-0.26	―	―	-21.67%	-18.64%
0295	40 Underperform	HK$224.47M	―	―	―	―	―

GCL New Energy Holdings Corporate Events

GCL New Energy to Issue 186.5 Million New Shares to Pharos Under Subscription Deal

GCL New Energy Holdings has entered into a Subscription and Investment Agreement with Pharos under which it will allot and issue 186.5 million new shares, representing about 12% of its existing share capital and 10.71% of its enlarged share capital, under its existing general mandate. The transaction, classified as a discloseable transaction under Hong Kong listing rules and therefore requiring announcement and reporting but not shareholder approval, is intended to bring in new capital and an investment arrangement with Pharos, although completion remains subject to specified conditions, and the company has applied to the Hong Kong Stock Exchange for listing approval of the new shares.

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 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.

The most recent analyst rating on (HK:0451) stock is a Sell 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 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.

The most recent analyst rating on (HK:0451) stock is a Sell 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 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.

The most recent analyst rating on (HK:0451) stock is a Sell 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 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.

The most recent analyst rating on (HK:0451) stock is a Sell 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 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.

The most recent analyst rating on (HK:0451) stock is a Sell 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.