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China Qinfa Group Ltd. (HK:0866)
:0866
Hong Kong Market

China Qinfa Group Ltd. (0866) AI Stock Analysis

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HK

China Qinfa Group Ltd.

(0866)

Rating:52Neutral
Price Target:
The overall score of 52 reflects significant financial challenges, including high leverage and declining cash flows, which overshadow the potential undervaluation indicated by the low P/E ratio. Technical indicators show mixed signals, adding uncertainty to the stock's near-term performance. The absence of recent earnings call data or notable corporate events further limits visibility into future performance.

China Qinfa Group Ltd. (0866) vs. iShares MSCI Hong Kong ETF (EWH)

China Qinfa Group Ltd. Business Overview & Revenue Model

Company DescriptionChina Qinfa Group Ltd. (0866) is a leading integrated coal operator in China, engaged primarily in the trading, transportation, and mining of coal. The company operates within the energy sector, focusing on providing high-quality thermal coal to its customers. Its core operations include coal mining, purchase and sales, and shipping services, enabling a comprehensive supply chain solution for the coal industry.
How the Company Makes MoneyChina Qinfa Group Ltd. generates revenue through several key streams within the coal industry. Primarily, the company earns money from the sale of coal extracted from its own mining operations and through the trading of coal purchased from other sources. Additionally, Qinfa Group provides transportation services, using its own fleet to deliver coal to customers, thereby adding a logistics revenue stream. The company's strategic partnerships with other coal producers and transportation companies further enhance its ability to procure and distribute coal efficiently, contributing to its earnings. The integration of mining, trading, and logistics allows Qinfa Group to optimize its supply chain, reduce costs, and increase profitability.

China Qinfa Group Ltd. Financial Statement Overview

Summary
China Qinfa Group Ltd. faces notable financial challenges, with declining revenue and profitability margins. Despite some cost improvements, high leverage and negative equity position present significant financial risks. Cash flow difficulties further complicate the situation, highlighting the need for strategic financial management to improve stability and growth prospects.
Income Statement
55
Neutral
The company experienced a decline in total revenue from 2022 to 2023, with a negative revenue growth rate of -9.1%. The gross profit margin for 2023 was 14.92%, which indicates moderate profitability. The net profit margin improved to 5.81%, reflecting better cost management, despite the revenue drop. However, the EBIT margin decreased to 15.18%, and the EBITDA margin fell to 42.32%, showing declining operational efficiency.
Balance Sheet
40
Negative
The balance sheet shows high leverage, with a negative equity position in 2023, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity, highlighting significant reliance on debt financing. Although liabilities have decreased, the company remains highly leveraged, posing risks to financial health.
Cash Flow
30
Negative
The cash flow statement reports a decline in free cash flow from 2022 to 2023, indicating challenges in generating cash. With an operating cash flow to net income ratio of 7.29 in 2023, the company struggles to convert income into cash, suggesting potential liquidity issues. The absence of positive free cash flow growth adds to the financial pressure.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
2.60B3.45B3.79B4.56B2.25B
Gross Profit
514.54M878.02M1.27B1.94B355.31M
EBIT
750.42M523.86M801.69M3.30B-2.98B
EBITDA
1.03B1.46B1.75B6.75B-3.47B
Net Income Common Stockholders
501.94M200.35M456.54M2.79B-2.91B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.03B302.73M856.00M1.05B154.90M
Total Assets
8.63B7.86B7.85B7.90B5.30B
Total Debt
1.20B3.58B3.53B3.71B4.60B
Net Debt
172.56M3.27B2.68B2.68B4.45B
Total Liabilities
5.14B7.54B7.04B7.58B8.19B
Stockholders Equity
1.97B-472.87M13.11M-450.10M-3.27B
Cash FlowFree Cash Flow
0.00378.85M253.32M1.75B404.63M
Operating Cash Flow
0.001.46B984.43M1.89B527.08M
Investing Cash Flow
0.00-1.84B-835.63M-18.77M-139.68M
Financing Cash Flow
0.00-212.07M-307.81M-989.73M-394.07M

China Qinfa Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.42
Price Trends
50DMA
1.13
Positive
100DMA
1.12
Positive
200DMA
1.18
Positive
Market Momentum
MACD
0.07
Negative
RSI
75.17
Negative
STOCH
92.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0866, the sentiment is Positive. The current price of 1.42 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.13, and above the 200-day MA of 1.18, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 75.17 is Negative, neither overbought nor oversold. The STOCH value of 92.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0866.

China Qinfa Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$818.57B10.9712.78%7.17%-7.73%-6.97%
76
Outperform
$141.48B5.8712.03%11.62%-4.04%-12.32%
73
Outperform
$4.37B11.893.05%1.29%-44.82%569.29%
69
Neutral
HK$116.74B5.5122.05%7.93%2.87%
59
Neutral
$49.33B12.079.94%0.81%1.39%-21.74%
58
Neutral
$7.47B3.50-4.45%10.05%0.81%-49.42%
52
Neutral
HK$3.60B6.8587.02%-26.23%147.88%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0866
China Qinfa Group Ltd.
1.48
0.69
87.34%
HK:1193
China Resources Gas Group
21.90
-6.17
-21.99%
HK:1088
China Shenhua Energy Co
34.60
-2.52
-6.78%
HK:1171
Yankuang Energy Group Company Limited Class H
8.47
-3.04
-26.42%
HK:1898
China Coal Energy Co
8.74
-0.18
-2.04%
HK:1051
G-Resources Group
9.78
7.32
297.72%

China Qinfa Group Ltd. Corporate Events

China Qinfa Group Ltd. Announces 2025 Annual General Meeting
Apr 29, 2025

China Qinfa Group Ltd. has announced its annual general meeting to be held on June 20, 2025, in Guangzhou City, China. Key agenda items include the adoption of financial statements for 2024, a final dividend declaration, re-election of executive directors, re-appointment of auditors, and authorization for share repurchase. These resolutions could impact the company’s financial strategies and shareholder value.

China Qinfa Group Completes Strategic Acquisition to Expand Market Presence
Apr 17, 2025

China Qinfa Group Ltd. has completed the acquisition of 100% equity interest in PT Widyanusa Mandiri, making it an indirectly wholly-owned subsidiary. This acquisition increases Qinfa’s effective equity interest in SDE to 70%, and the financial results of the newly acquired group will be consolidated into Qinfa’s financial statements, potentially enhancing its market position and operational scale.

China Qinfa Group Secures Coal Supply Agreement with Zhejiang Energy
Apr 10, 2025

China Qinfa Group Ltd. announced that its subsidiary, SDE, has entered into a Coal Supply Agreement with Zhejiang Energy Asia Pacific for the sale of 200,000 MT of Indonesian steam coal. This agreement, which is classified as a continuing connected transaction under the Hong Kong Stock Exchange Listing Rules, reflects fair and reasonable terms and is expected to enhance the company’s operational capacity and market presence in the coal industry.

China Qinfa Group Acquires Full Stake in PT Widyanusa Mandiri
Mar 28, 2025

China Qinfa Group Ltd. has announced the acquisition of 100% equity interest in PT Widyanusa Mandiri, a substantial shareholder of SDE, a non-wholly-owned subsidiary controlled by the company. The acquisition involves purchasing 99% and 1% equity interests from two sellers for a total cash consideration of approximately USD8.5 million and USD3,000, respectively. This move will consolidate the Target Company into Qinfa’s financial statements, enhancing its control and potentially strengthening its market position. The transaction is classified as a connected transaction under Hong Kong’s Listing Rules but is exempt from certain requirements due to its fairness and alignment with shareholder interests.

China Qinfa Group Announces Board Meeting for Annual Results
Mar 12, 2025

China Qinfa Group Ltd. has announced a board meeting scheduled for March 24, 2025, to approve the annual results for the year ending December 31, 2024, and to consider the recommendation of a final dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

China Qinfa Group Ltd. Projects Significant Profit Increase for 2024
Mar 10, 2025

China Qinfa Group Ltd. has announced a positive profit alert, expecting a significant increase in profit after taxation for the year ending December 31, 2024, with an anticipated profit of up to RMB560 million compared to RMB192 million in the previous year. This increase is attributed to modifications in borrowings and changes in coal selling prices, despite impairment losses on assets. The final annual results are yet to be finalized and will be published by March 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.