China Qinfa Group Ltd. (0866) AI Stock Analysis

• Market Cap: HK$7.71B
• Dividend Yield: 1.53%
• Average Volume (3M): 5.62M
• Price to Earnings (P/E): 21.1
• Beta (1Y): -0.09
• Revenue Growth: -20.71%
• EPS Growth: 209.68%
• Country: HK
• Employees: 3,612
• Sector: Energy
• Sector Strength: 52
• Industry: Coal
• EPS (TTM): -0.06
• Shares Outstanding: 2,537,414,000
• 10 Day Avg. Volume: 5,612,644
• 30 Day Avg. Volume: 5,623,166
• PEG Ratio: 0.04
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 1.10
• P/FCF Ratio: -7.45
• 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): 0.47
• Revenue Forecast (FY): HK$16.59B

• Rating: 46 Neutral
• Price Target: HK$3.00 ▲(13.64% Upside)

The overall stock score of 46 reflects significant financial challenges, including high leverage and declining cash flow, which pose risks to stability. Technical analysis indicates a bearish trend, while valuation metrics suggest the stock is moderately overvalued. These factors collectively contribute to a cautious outlook for the stock.

Positive Factors

Business Model Strength

The company's focus on coal logistics and trading, supported by long-term contracts, ensures a steady revenue stream and positions it well in the coal industry.

Cost Management

Improved net profit margins despite revenue decline indicate effective cost management, which can enhance profitability and resilience over time.

Strategic Positioning

Strategic positioning in resource-rich areas allows for cost optimization, enhancing competitive advantage and long-term profitability.

Negative Factors

High Leverage

Significant reliance on debt financing poses financial risks, limiting flexibility and increasing vulnerability to economic downturns.

Declining Revenue

Declining revenue growth challenges the company's ability to sustain operations and invest in future growth, impacting long-term prospects.

Cash Flow Challenges

Reduced cash generation limits the company's ability to fund operations and growth initiatives, potentially affecting liquidity and stability.

China Qinfa Group Ltd. Business Overview & Revenue Model

Company Description

China Qinfa Group Limited, an investment holding company, engages in the mining, purchase and sale, filtering, storage, blending, shipping, and transportation of coal in the People's Republic of China. The company operates through Coal Business and Shipping Transportation segments. As of December 31, 2021, the company owned and operated five coal mines in China and one coal mine in Indonesia. It is also involved in goods transportation and logistics, and charter hire activities, as well as time charter and voyage charter of vessels. The company was founded in 1996 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

China Qinfa Group generates revenue primarily through its coal logistics services, which include the transportation and storage of coal, as well as through direct coal trading activities. The company benefits from a robust revenue model that includes long-term contracts with customers, ensuring a steady flow of income. Key revenue streams come from fees charged for logistics services, margins on coal trading, and partnerships with coal producers and distributors. Additionally, the company may leverage its strategic positioning in coal-rich regions to optimize procurement costs and enhance 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

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

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

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.32B	2.60B	3.45B	3.79B	4.56B	2.25B
Gross Profit	434.41M	514.54M	878.02M	1.27B	1.94B	355.31M
EBITDA	981.51M	1.03B	1.46B	1.75B	6.75B	-3.47B
Net Income	332.85M	501.94M	200.35M	456.54M	2.79B	-2.91B
Balance Sheet
Total Assets	9.50B	8.63B	7.86B	7.85B	7.90B	5.30B
Cash, Cash Equivalents and Short-Term Investments	618.80M	1.03B	302.73M	856.00M	1.05B	154.90M
Total Debt	1.08B	1.20B	3.58B	3.53B	3.71B	4.60B
Total Liabilities	6.26B	5.14B	7.54B	7.04B	7.58B	8.19B
Stockholders Equity	1.77B	1.97B	-472.87M	13.11M	-450.10M	-3.27B
Cash Flow
Free Cash Flow	-582.31M	-384.53M	378.85M	253.32M	1.75B	404.63M
Operating Cash Flow	-231.85M	466.93M	1.46B	984.43M	1.89B	527.08M
Investing Cash Flow	-328.50M	-612.16M	-1.84B	-835.63M	-18.77M	-139.68M
Financing Cash Flow	1.31B	823.72M	-212.07M	-307.81M	-989.73M	-394.07M

China Qinfa Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.64
• 50DMA: Positive
• 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:0866, the sentiment is Positive. The current price of 2.64 is below the 20-day moving average (MA) of 2.72, below the 50-day MA of 2.91, and above the 200-day MA of 2.15, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 62.53 is Neutral, neither overbought nor oversold. The STOCH value of 89.54 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1277	81 Outperform	HK$12.98B	7.61	19.63%	9.92%	-2.79%	-39.45%
1733	73 Outperform	HK$2.51B	9.13	3.21%	20.68%	-23.72%	-86.69%
2798	69 Neutral	HK$1.95B	9.70	6.31%	4.24%	-26.28%	-69.55%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0975	58 Neutral	$11.51B	18.20	6.76%	―	-20.50%	-64.45%
0866	46 Neutral	HK$7.71B	21.11	81.71%	1.53%	-20.71%	209.68%
6885	44 Neutral	HK$663.92M	-1.95	-9.96%	―	-26.97%	-76.57%

China Qinfa Group Ltd. Corporate Events

China Qinfa Group Secures Coal Supply Agreement with Zhejiang Energy

China Qinfa Group Ltd. announced a Coal Supply Agreement between its non-wholly owned subsidiary, SDE, and Zhejiang Energy Asia Pacific. This agreement involves the sale of 150,000 MT of Indonesian steam coal, with potential adjustments, to be delivered in two shipments starting December 2025. The transaction is classified as a connected transaction under Hong Kong’s Listing Rules, requiring reporting and review but exempt from certain approval requirements. The agreement underscores Qinfa’s strategic partnerships and operational commitments in the coal industry.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.

China Qinfa Group’s Subsidiary Enters Coal Supply Agreement with Zhejiang Energy

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 150,000 MT of Indonesian steam coal. This agreement is considered a connected transaction under Hong Kong’s Listing Rules due to Zhejiang Energy Asia Pacific’s status as a connected person at the subsidiary level. The transaction has been approved by the Board and deemed fair and reasonable by independent non-executive directors, thus exempting it from certain regulatory requirements. This agreement is expected to enhance the company’s operational capabilities and strengthen its market position in coal supply.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.

China Qinfa Group Ltd. Joins MSCI Global Small Cap Indexes

China Qinfa Group Ltd. has announced its inclusion in the MSCI Global Small Cap Indexes following a recent review by Morgan Stanley Capital International. This inclusion, effective after trading on November 24, 2025, marks a significant development for the company, potentially enhancing its visibility and attractiveness to international professional investment institutions.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.

China Qinfa Group Updates on TSE Coal Mine Development

China Qinfa Group Limited has announced an update on its coal mining development at the TSE Coal Mine in South Kalimantan, Indonesia. The mine, which spans 168 square kilometers, is in the pre-operational planning phase with construction expected to begin in the first quarter of 2026. The TSE Coal Mine boasts an estimated coal reserve of 378.79 million metric tonnes and a coal resource of 897.14 million metric tonnes, with a calorific value superior to the company’s existing mines. This development is significant for the company as it enhances its resource base and positions it for future growth in the coal industry.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.

China Qinfa Group’s Subsidiary Enters Coal Supply Agreement

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 75,000 MT of Indonesian steam coal. This transaction is classified as a connected transaction under the Hong Kong Listing Rules due to Zhejiang Energy Asia Pacific’s status as a connected person at the subsidiary level. The agreement has been approved by the Board and deemed fair and reasonable by independent non-executive directors, thus exempting it from certain regulatory requirements.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.

China Qinfa Group Secures Coal Supply Agreement with Zhejiang Energy

China Qinfa Group Ltd. announced a new Coal Supply Agreement between its subsidiary SDE and Zhejiang Energy Asia Pacific. This agreement involves the sale of 75,000 MT of Indonesian steam coal, with a potential adjustment of 10% in quantity. The transaction is classified as a connected transaction under Hong Kong’s Listing Rules, requiring reporting and annual review but exempt from certain approval requirements. This agreement strengthens Qinfa’s market position and underscores its strategic partnerships in the coal supply chain.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.