China High Speed Transmission Equipment Group Co (0658) AI Stock Analysis

• Market Cap: HK$2.76B
• Dividend Yield: N/A
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.72
• Revenue Growth: -4.88%
• EPS Growth: -860.80%
• Country: HK
• Employees: 8,039
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.09
• Shares Outstanding: 1,635,291,500
• 10 Day Avg. Volume: 810,700
• 30 Day Avg. Volume: 2,126,166
• PEG Ratio: <0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.57
• 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: 45 Neutral
• Price Target: HK$1.50 ▼(-4.46% Downside)

The overall stock score is primarily driven by significant financial challenges, including a reversal from profitability to loss and high financial leverage. Technical indicators suggest a bearish trend, with the stock trading below key moving averages and approaching oversold conditions. Valuation metrics are weak, with a negative P/E ratio and no dividend yield, further impacting the stock's attractiveness.

Positive Factors

Strategic Partnerships

These partnerships provide a reliable revenue stream and strengthen market position, enhancing long-term stability in the wind power sector.

Technological Innovation

Innovation drives product differentiation and cost efficiency, supporting competitive advantage and long-term profitability.

Market Position

A strong market position in a specialized industry provides a competitive edge and potential for sustainable growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial health and investment capacity.

Negative Free Cash Flow

Negative free cash flow indicates inefficiencies in cash generation, raising concerns about the company's ability to fund operations and growth without external financing.

Declining Revenue and Profitability

Declining profitability and revenue suggest operational challenges and market difficulties, potentially affecting long-term business sustainability.

China High Speed Transmission Equipment Group Co Business Overview & Revenue Model

Company Description

China High Speed Transmission Equipment Group Co., Ltd. engages in the manufacture of high-speed and heavy-duty gears for wind-turbine gearboxes and transmission systems in China and international. It focuses on wind energy gearboxes, rail vehicle gearboxes, industrial gearboxes, and robot reducers. The company was founded in 1969 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

The company generates revenue primarily through the sale of its high-speed transmission equipment and components. This includes custom gearboxes and transmission systems that cater to various industries like renewable energy, transportation, and manufacturing. Key revenue streams include product sales, maintenance services, and after-sales support. Additionally, the company benefits from strategic partnerships with major industrial players, which enhance its market reach and provide opportunities for large-scale contracts. Factors contributing to its earnings also include investments in research and development that lead to innovative product offerings, along with government initiatives that support infrastructure and renewable energy projects.

China High Speed Transmission Equipment Group Co Financial Statement Overview

Summary

China High Speed Transmission Equipment Group Co is facing significant financial challenges. The income statement shows a drastic reversal from profitability to loss, while the balance sheet indicates high leverage and decreasing equity. Cash flow issues, particularly negative free cash flow, suggest difficulties in sustaining operations without external financing.

Income Statement

The income statement shows a concerning trend with a significant decline in net income from a profit of 95.5 million in 2023 to a loss of 6.56 billion in 2024. The gross profit margin has decreased, and EBIT has turned negative, suggesting operational challenges. Revenue growth has been inconsistent, with a recent decline, indicating potential market or operational difficulties.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to increasing debt and decreasing equity, which could pose financial risks. The equity ratio has decreased, reflecting lower financial stability, but the company maintains substantial cash reserves, offering some liquidity buffer. Overall, financial leverage is a concern.

Cash Flow

Cash flow analysis indicates a lack of free cash flow growth, with operating cash flow turning negative in 2024. The free cash flow to net income ratio is poor, highlighting inefficiencies in converting earnings into cash. Persistent negative free cash flow raises sustainability concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.89B	22.08B	24.08B	21.08B	20.21B	15.37B
Gross Profit	3.79B	3.29B	3.39B	3.26B	3.19B	3.21B
EBITDA	-25.08M	-971.80M	2.04B	1.92B	2.17B	1.90B
Net Income	-6.16B	-6.56B	95.52M	101.60M	1.32B	840.91M
Balance Sheet
Total Assets	38.64B	37.71B	41.70B	41.63B	29.64B	25.85B
Cash, Cash Equivalents and Short-Term Investments	6.38B	7.23B	7.44B	8.62B	6.78B	5.94B
Total Debt	9.50B	9.17B	9.49B	7.84B	4.00B	2.38B
Total Liabilities	25.79B	25.15B	27.79B	28.04B	15.87B	13.23B
Stockholders Equity	8.31B	8.40B	10.27B	10.48B	13.40B	12.22B
Cash Flow
Free Cash Flow	556.63M	-2.26B	-2.14B	-1.70B	-2.62B	710.61M
Operating Cash Flow	1.91B	-143.38M	352.04M	906.61M	-1.48B	1.18B
Investing Cash Flow	-1.15B	-1.11B	-303.35M	-5.46B	-25.37M	1.86B
Financing Cash Flow	-1.98B	-516.83M	1.18B	5.57B	2.64B	-3.38B

China High Speed Transmission Equipment Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.57
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0658, the sentiment is Positive. The current price of 1.57 is below the 20-day moving average (MA) of 1.64, below the 50-day MA of 1.72, and above the 200-day MA of 1.25, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.86 is Neutral, neither overbought nor oversold. The STOCH value of 90.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0658.

China High Speed Transmission Equipment Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1133	77 Outperform	HK$30.59B	12.80	15.06%	1.79%	34.78%	98.79%
1072	75 Outperform	HK$85.15B	20.74	7.71%	2.05%	20.99%	-5.99%
1882	75 Outperform	HK$35.59B	10.08	15.98%	3.30%	16.15%	17.32%
2208	74 Outperform	$62.92B	24.21	6.78%	1.26%	25.84%	26.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2727	54 Neutral	$141.41B	61.85	1.93%	―	7.59%	376.62%
0658	45 Neutral	HK$2.76B	―	-69.18%	―	-4.88%	-860.80%

China High Speed Transmission Equipment Group Co Corporate Events

China High Speed Transmission Postpones EGM Amid Stakeholder Concerns

China High Speed Transmission Equipment Group Co. has announced the postponement of its Extraordinary General Meeting (EGM) initially scheduled for October 27, 2025, due to recent developments and stakeholder concerns. The decision to delay the EGM to June 30, 2028, was influenced by unfounded allegations from Fullshare, opposition from minority shareholders, and concerns from the company’s workforce and major suppliers. The postponement aims to ensure the stability of the company’s operations and maintain stakeholder confidence while ongoing legal actions and investigations are addressed.

The most recent analyst rating on (HK:0658) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China High Speed Transmission Equipment Group Co stock, see the HK:0658 Stock Forecast page.

China High Speed Transmission Addresses Allegations Amid Ongoing Investigation

China High Speed Transmission Equipment Group Co., Ltd. has issued a voluntary announcement addressing allegations made by Fullshare Holdings Limited. The company refutes claims of a purported investigation result by Fullshare, emphasizing the lack of credible evidence and the ongoing PRC Criminal Investigation into suspected embezzlement. The company remains committed to transparency and urges stakeholders to treat Fullshare’s assertions with caution.

The most recent analyst rating on (HK:0658) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China High Speed Transmission Equipment Group Co stock, see the HK:0658 Stock Forecast page.

China High Speed Transmission Responds to Fullshare’s Allegations

China High Speed Transmission Equipment Group Co., Ltd. has issued a voluntary announcement addressing accusations from Fullshare Holdings Limited. The company refutes Fullshare’s claims as false and misleading, emphasizing that these allegations aim to distract from Fullshare’s own alleged wrongdoings. The company is pursuing legal action to recover financial losses attributed to a fraudulent scheme orchestrated by Fullshare and its affiliates. Additionally, the company reaffirms its control over NHS and highlights its strategic board positioning to maintain effective governance.

The most recent analyst rating on (HK:0658) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China High Speed Transmission Equipment Group Co stock, see the HK:0658 Stock Forecast page.

China High Speed Transmission Appoints New Auditors to Ensure Compliance

China High Speed Transmission Equipment Group Co., Ltd. has appointed HLB Hodgson Impey Cheng Limited as its new auditors following a competitive selection process. This decision fills the vacancy left by the previous auditors, Baker Tilly Hong Kong Limited, whose reappointment was not approved at the AGM. The appointment aims to ensure the company’s compliance with listing rules and maintain uninterrupted trading of its shares. The decision was backed by the company’s audit committee and an independent body, highlighting HLB Hodgson’s experience and competence in handling audits for listed companies.

The most recent analyst rating on (HK:0658) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China High Speed Transmission Equipment Group Co stock, see the HK:0658 Stock Forecast page.

China High Speed Transmission Refutes Fullshare’s Accusations

China High Speed Transmission Equipment Group Co., Ltd. has issued a voluntary announcement refuting claims made by Fullshare Holdings Limited regarding delays in interim results publication and alleged mismanagement. The company asserts that Fullshare’s accusations are unfounded and misleading, highlighting that it provided all necessary financial information in a timely manner. Furthermore, the company is seeking legal advice to protect its interests and condemns the defamatory statements made by Fullshare, urging them to cease spreading false information.

The most recent analyst rating on (HK:0658) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China High Speed Transmission Equipment Group Co stock, see the HK:0658 Stock Forecast page.

China High Speed Transmission Reports Improved Interim Results for 2025

China High Speed Transmission Equipment Group Co., Ltd. reported its unaudited interim results for the first half of 2025, showing a slight decrease in revenue by 1.8% compared to the previous year. Despite this, the company achieved a significant reduction in losses, with a 74.3% decrease in loss attributable to owners, indicating improved operational efficiency. The company’s gross profit increased by 36.7%, reflecting better cost management and operational improvements. The financial results suggest a positive trajectory for the company, with implications for enhanced stakeholder confidence and potential market positioning improvements.

The most recent analyst rating on (HK:0658) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China High Speed Transmission Equipment Group Co stock, see the HK:0658 Stock Forecast page.

China High Speed Transmission Refutes Fullshare’s Claims, Considers Legal Action

China High Speed Transmission Equipment Group Co., Ltd. has issued a voluntary announcement in response to claims made by Fullshare Holdings Limited regarding a delay in its 2025 interim results publication and potential trading suspension. The company refutes these claims as false and misleading, and is considering legal and regulatory actions to protect its interests and those of its shareholders. A clarificatory announcement will be made soon, advising caution to shareholders and potential investors in dealing with the company’s securities.

The most recent analyst rating on (HK:0658) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China High Speed Transmission Equipment Group Co stock, see the HK:0658 Stock Forecast page.

China High Speed Transmission Reports Reduced Losses for H1 2025

China High Speed Transmission Equipment Group Co., Ltd. announced a significant reduction in its financial losses for the first half of 2025, reporting an expected loss of RMB136 million compared to RMB528.7 million in the same period last year. This improvement is attributed to the suspension of its trading business, which previously required substantial impairment provisions, and increased revenue from its wind and industrial gear transmission equipment segments.

The most recent analyst rating on (HK:0658) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China High Speed Transmission Equipment Group Co stock, see the HK:0658 Stock Forecast page.