GCL New Energy Holdings (0451) AI Stock Analysis

• Market Cap: $691.67M
• Dividend Yield: N/A
• Average Volume (3M): 4.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: 30.60%
• EPS Growth: 68.16%
• Country: HK
• Employees: 1,075
• Sector: Energy
• Sector Strength: 56
• Industry: Renewable Utilities
• EPS (TTM): -0.19
• Shares Outstanding: 1,554,322,900
• 10 Day Avg. Volume: 4,555,062
• 30 Day Avg. Volume: 4,857,960
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 6.03
• Enterprise Value/Revenue: 3.76
• Enterprise Value/Gross Profit: 32.72
• Enterprise Value/Ebitda: 71.09
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: HK$0.50 ▲(13.64%Upside)

The overall stock score is primarily influenced by significant financial challenges, including declining revenues, profitability, and high leverage. Technical indicators provide some positive signs with moderate bullish momentum, but valuation concerns persist due to ongoing losses.

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

The company is facing significant financial challenges, with declining revenues, profitability, and deteriorating margins. High leverage and negative free cash flow highlight financial instability and a critical 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	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
EBITDA	58.65M	195.45M	391.44M	1.99B	4.49B
Net Income	-424.04M	-1.17B	-1.29B	-561.72M	-1.22B
Balance Sheet
Total Assets	6.09B	6.51B	12.16B	15.92B	45.04B
Cash, Cash Equivalents and Short-Term Investments	284.87M	555.39M	797.13M	586.05M	1.14B
Total Debt	451.64M	551.80M	4.52B	6.61B	29.16B
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	-425.43M	-122.76M	533.45M	-2.37B	2.87B
Operating Cash Flow	-400.12M	393.28M	1.26B	602.58M	4.24B
Investing Cash Flow	257.00M	1.57B	1.54B	381.63M	974.47M
Financing Cash Flow	-129.09M	-2.26B	-2.59B	-1.56B	-5.07B

GCL New Energy Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 0.44 is below the 20-day moving average (MA) of 0.45, above the 50-day MA of 0.41, and above the 200-day MA of 0.42, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 is Neutral, 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
0987	67 Neutral	HK$360.89M	21.82	0.89%	3.47%	-10.08%	-29.03%
Sector *	67 Neutral	$15.01B	9.77	5.95%	5.64%	4.51%	-61.80%
0451	50 Neutral	$691.67M	―	-22.62%	―	30.60%	68.16%
SHUNF	―	$15.54M	―		―	―	―
KOJ5	―		―	-14.51%	―	―	―
8326	76 Outperform	HK$190.19M	2.27	23.45%	―	45.29%	175.68%
0527	40 Underperform	HK$703.03M	―		―	-4.32%	14.13%

GCL New Energy Holdings Corporate Events

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.

GCL New Energy Updates Nomination Committee Terms

GCL New Energy Holdings Limited has amended the terms of reference for its Nomination Committee to align with the Listing Rules and legal requirements. The committee, comprising a majority of independent non-executive directors, is tasked with reviewing the board’s structure and composition, developing criteria for board candidates, and ensuring board diversity and effective succession planning, which are crucial for maintaining robust corporate governance.

GCL New Energy Successfully Passes All AGM Resolutions

GCL New Energy Holdings Limited announced the successful passing of all resolutions during its Annual General Meeting held on May 22, 2025. The resolutions included the re-election of directors, the re-appointment of auditors, and the granting of mandates to directors for share allotment and repurchase, indicating strong shareholder support and strategic direction for the company’s future operations.