China Qinfa Group Ltd. (0866) AI Stock Analysis

• Market Cap: HK$3.60B
• Dividend Yield: N/A
• Average Volume (3M): 3.05M
• Price to Earnings (P/E): 6.9
• Beta (1Y): -0.11
• Revenue Growth: -26.23%
• EPS Growth: 147.88%
• Country: HK
• Employees: 3,612
• Sector: Energy
• Sector Strength: 55
• Industry: Coal
• EPS (TTM): 0.20
• Shares Outstanding: 2,537,414,000
• 10 Day Avg. Volume: 3,596,616
• 30 Day Avg. Volume: 3,052,219
• PEG Ratio: -0.06
• Price to Book (P/B): -1.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.25
• 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: 52 Neutral
• 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. Business Overview & Revenue Model

Company Description

China 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 Money

China 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

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.60B	3.45B	3.79B	4.56B	2.25B
	Gross Profit
514.54M	878.02M	1.27B	1.94B	355.31M
	EBIT
750.42M	523.86M	801.69M	3.30B	-2.98B
	EBITDA
1.03B	1.46B	1.75B	6.75B	-3.47B
	Net Income Common Stockholders
501.94M	200.35M	456.54M	2.79B	-2.91B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.03B	302.73M	856.00M	1.05B	154.90M
	Total Assets
8.63B	7.86B	7.85B	7.90B	5.30B
	Total Debt
1.20B	3.58B	3.53B	3.71B	4.60B
	Net Debt
172.56M	3.27B	2.68B	2.68B	4.45B
	Total Liabilities
5.14B	7.54B	7.04B	7.58B	8.19B
	Stockholders Equity
1.97B	-472.87M	13.11M	-450.10M	-3.27B
Cash Flow		Free Cash Flow
0.00	378.85M	253.32M	1.75B	404.63M
	Operating Cash Flow
0.00	1.46B	984.43M	1.89B	527.08M
	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 Price: 1.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1088	80 Outperform	$818.57B	10.97	12.78%	7.17%	-7.73%	-6.97%
1898	76 Outperform	$141.48B	5.87	12.03%	11.62%	-4.04%	-12.32%
1051	73 Outperform	$4.37B	11.89	3.05%	1.29%	-44.82%	569.29%
1171	69 Neutral	HK$116.74B	5.51	22.05%	7.93%	2.87%	―
1193	59 Neutral	$49.33B	12.07	9.94%	0.81%	1.39%	-21.74%
Sector *	58 Neutral	$7.47B	3.50	-4.45%	10.05%	0.81%	-49.42%
0866	52 Neutral	HK$3.60B	6.85	87.02%	―	-26.23%	147.88%

China Qinfa Group Ltd. Corporate Events

China Qinfa Group Ltd. Announces 2025 Annual General Meeting

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

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

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

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

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

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.