GCL New Energy Holdings (0451) AI Stock Analysis

• Market Cap: $660.59M
• Dividend Yield: N/A
• Average Volume (3M): 4.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: 30.60%
• EPS Growth: 68.16%
• Country: HK
• Employees: 1,075
• Sector: Energy
• Sector Strength: 76
• Industry: Renewable Utilities
• EPS (TTM): -0.19
• Shares Outstanding: 1,554,322,900
• 10 Day Avg. Volume: 8,394,700
• 30 Day Avg. Volume: 4,094,415
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.23
• 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

• Rating: 35 Underperform
• Price Target: ―

The overall stock score is driven primarily by weak financial performance and bearish technical indicators. The company's high leverage and inconsistent cash flow generation are significant risks. The challenging valuation further impacts the score, with a negative P/E ratio and no dividend yield making it less attractive to investors.

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 through the sale of electricity generated from its solar power plants. The company enters into power purchase agreements (PPAs) with government entities, utilities, and corporate clients, ensuring a steady income stream. These agreements typically involve long-term contracts that guarantee a fixed price for the electricity produced, providing financial stability and predictability. Additionally, the company may benefit from government incentives and subsidies aimed at promoting renewable energy adoption. GCL New Energy also explores opportunities in the operation and maintenance of solar facilities, adding an additional revenue stream to its portfolio. Strategic partnerships and joint ventures with other energy companies may further enhance its market presence and revenue potential.

GCL New Energy Holdings Financial Statement Overview

Summary

Financial performance is weak due to deteriorating revenue and profitability, with negative net profit margins and high leverage posing substantial risks. The company's reliance on debt and inconsistent cash flow generation are significant concerns.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.11B	831.52M	929.06M	2.84B	4.94B
	Gross Profit
127.44M	380.79M	451.07M	1.78B	3.13B
	EBIT
-180.78M	-43.98M	70.76M	1.33B	3.03B
	EBITDA
58.65M	195.45M	391.44M	1.99B	4.49B
	Net Income Common Stockholders
-424.04M	-1.17B	-1.29B	-561.72M	-1.22B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
284.87M	555.39M	797.13M	586.05M	1.14B
	Total Assets
6.09B	6.51B	12.16B	15.92B	45.04B
	Total Debt
451.64M	551.80M	4.52B	6.61B	29.16B
	Net Debt
166.78M	-3.59M	3.72B	6.03B	28.02B
	Total Liabilities
1.26B	1.51B	6.19B	8.96B	36.50B
	Stockholders Equity
1.69B	2.06B	3.20B	4.37B	5.04B
Cash Flow		Free Cash Flow
0.00	-122.76M	533.45M	-2.37B	2.87B
	Operating Cash Flow
0.00	393.28M	1.26B	602.58M	4.24B
	Investing Cash Flow
0.00	1.57B	1.54B	381.63M	974.47M
	Financing Cash Flow
0.00	-2.26B	-2.59B	-1.56B	-5.07B

GCL New Energy Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 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 0.42 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.36, and above the 200-day MA of 0.41, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.00 is Neutral, neither overbought nor oversold. The STOCH value of 61.20 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	76 Outperform	HK$195.09M	1.98	26.61%	―	45.29%	175.68%
0987	69 Neutral	HK$340.84M	20.61	0.89%	3.68%	-10.08%	-29.03%
Sector *	68 Neutral	$15.28B	10.01	6.42%	5.16%	4.47%	-73.86%
0527	40 Underperform	HK$823.07M	―		―	-4.32%	14.13%
0451	35 Underperform	$660.59M	―	-22.62%	―	30.60%	68.16%
SHUNF		$11.01M	―		―	―	―
KOJ5			―	-14.51%	―	―	―

GCL New Energy Holdings Corporate Events

GCL New Energy Holdings Announces 2025 Annual General Meeting

GCL New Energy Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 22, 2025, in Hong Kong. The AGM will address several key agenda items including the adoption of the 2024 financial statements, re-election of directors, and re-appointment of the company’s auditor. Additionally, shareholders will consider resolutions related to the issuance of additional shares, which could impact the company’s capital structure and market positioning.

GCL New Energy Updates Hong Kong Share Registrar

GCL New Energy Holdings Limited announced a change in its Hong Kong branch share registrar and transfer office, effective from April 17, 2025. This change involves transferring responsibilities to Tricor Investor Services Limited, which will handle all future share registration and transfer processes, potentially streamlining operations and enhancing service efficiency for stakeholders.

GCL New Energy Reports Revenue Growth but Continues to Face Losses in 2024

GCL New Energy Holdings Limited announced its financial results for the year ending December 31, 2024, reporting a revenue increase to RMB 1,108 million from RMB 832 million in 2023. Despite the revenue growth, the company faced a loss attributable to owners of RMB 424 million, an improvement from the previous year’s loss of RMB 1,166 million, indicating ongoing challenges in cost management and profitability. The results reflect a significant reduction in losses, which may impact the company’s strategic positioning and stakeholder confidence in its financial recovery efforts.

GCL New Energy Proposes Share Capital Increase to Fuel Growth

GCL New Energy Holdings Limited has announced a proposal to increase its authorised share capital from HK$150 million to HK$250 million by creating an additional 1.2 billion shares. This move aims to support the company’s growth and provide flexibility for future fundraising, pending shareholder approval at the upcoming annual general meeting.

GCL New Energy Completes Strategic Acquisition to Enhance Market Position

GCL New Energy Holdings Limited has completed a major acquisition, resulting in the company owning the entire issued share capital of the target company. This strategic move involves the issuance of consideration shares and conversion shares, which will consolidate the financial results of the target group into GCL’s financial statements, potentially strengthening its position in the renewable energy market. The acquisition also impacts the company’s shareholding structure, increasing the stake of the Zhu Family Group and reducing the proportion of public shareholders.

GCL New Energy Holdings to Review Annual Results and Dividend

GCL New Energy Holdings Limited has announced an upcoming board meeting scheduled for March 26, 2025, to discuss and approve the annual results for the year ending December 31, 2024. The meeting will also consider the declaration or payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.

GCL New Energy Terminates EPC Agreement Without Financial Impact

GCL New Energy Holdings Limited announced the termination of its EPC Agreement related to a project in Ethiopia due to changes in the transaction plan and inability to meet local licensing and construction requirements. The company stated that this termination will not adversely affect its financial or operational position and is considered beneficial for the company and its shareholders.

GCL New Energy Advances Strategic Acquisition with Shareholder Approval

GCL New Energy Holdings Limited announced that its shareholders have approved an important resolution during a special general meeting held on 18 February 2025. The resolution involves the approval of a Sale and Purchase Agreement and related financial instruments, including the issuance of Consideration Shares and Convertible Bonds. This decision is expected to significantly impact the company’s operational capabilities and strategic positioning within the renewable energy market, facilitating further growth and investment opportunities.