Chaowei Power Holdings (0951) AI Stock Analysis

• Market Cap: HK$1.58B
• Dividend Yield: 3.09%
• Average Volume (3M): 660.00K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.30
• Revenue Growth: 24.79%
• EPS Growth: -2.24%
• Country: HK
• Employees: 14,484
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Auto - Parts
• EPS (TTM): 0.20
• Shares Outstanding: 1,104,127,000
• 10 Day Avg. Volume: 619,500
• 30 Day Avg. Volume: 660,000
• PEG Ratio: -0.33
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -3.43
• 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: 65 Neutral
• Price Target: HK$1.50 ▲(6.38% Upside)

The overall stock score of 65 reflects a mixed outlook. Strong valuation metrics suggest potential undervaluation, but financial performance is hindered by declining margins and cash flow issues. Technical indicators show neutral to bearish momentum, warranting caution.

Positive Factors

Revenue Growth

The company has demonstrated a strong revenue growth trend, indicating successful market penetration and increasing demand for its products.

Market Position

Being a leading manufacturer in the lead-acid battery market provides a competitive edge and potential for sustained market share.

Product Diversification

Diverse applications for its products reduce dependency on a single market, enhancing resilience against sector-specific downturns.

Negative Factors

Declining Profit Margins

Decreasing profit margins suggest rising costs or pricing pressures, which may impact long-term profitability if not addressed.

Inconsistent Cash Flow

Fluctuating cash flow can hinder the company's ability to reinvest in growth opportunities and manage financial obligations effectively.

Declining ROE

A declining ROE indicates potential inefficiencies in using shareholders' equity to generate profits, which could affect investor confidence.

Chaowei Power Holdings Business Overview & Revenue Model

Company Description

Chaowei Power Holdings (0951) is a leading manufacturer and supplier of lead-acid batteries and energy solutions in China. The company primarily operates within the power supply and energy storage sectors, catering to a diverse range of applications including electric vehicles, telecommunications, and uninterruptible power supply (UPS) systems. Chaowei Power focuses on providing high-quality products that support the growing demand for reliable energy storage solutions in both the consumer and industrial markets.

How the Company Makes Money

Chaowei Power Holdings generates revenue primarily through the sale of lead-acid batteries across various sectors, including electric vehicles, telecommunications, and renewable energy storage systems. The company earns money by producing and selling these batteries to original equipment manufacturers (OEMs), distributors, and directly to end-users. Key revenue streams include the sale of batteries for electric bicycles and motorcycles, which have seen increased demand with the rise of urban mobility solutions. Additionally, Chaowei Power engages in partnerships with automotive and electronic companies to supply customized battery solutions, further diversifying its income. The company's strategic investments in research and development also allow it to innovate and improve its product offerings, enhancing its competitive edge and driving sales growth.

Chaowei Power Holdings Financial Statement Overview

Summary

Chaowei Power Holdings shows solid revenue growth, but declining profit margins and inconsistent cash flow pose challenges. The balance sheet is moderately leveraged, but declining ROE suggests efficiency issues. Investors should be cautious about operational and cash flow risks despite growth.

Income Statement

The income statement shows a solid revenue growth trend, with a notable increase from 2023 to 2024. However, the gross and net profit margins have slightly decreased over the years, indicating rising costs or pricing pressure. The EBIT and EBITDA margins also show a decline, pointing towards operational challenges. Despite these issues, the company has managed to sustain revenue growth, which is a positive indicator.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, suggesting a reasonable leverage position. However, the return on equity has been declining, which could be a concern for investors looking for efficient equity utilization. The equity ratio is stable, indicating a balanced approach between debt and equity financing. Overall, while there are some strengths in debt management, the declining ROE calls for attention.

Cash Flow

The cash flow statement highlights some challenges, particularly with free cash flow, which has been inconsistent over the years. The operating cash flow to net income ratio is not available for 2024, raising concerns about cash generation capabilities relative to net earnings. The free cash flow to net income ratio also reflects fluctuations, indicating potential struggles in maintaining positive cash flow after capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	56.36B	50.34B	40.37B	31.93B	29.49B	27.30B
Gross Profit	3.66B	3.49B	3.60B	3.70B	3.32B	3.30B
EBITDA	1.01B	1.07B	1.86B	1.93B	1.70B	2.04B
Net Income	291.32M	289.51M	347.53M	417.18M	516.27M	720.40M
Balance Sheet
Total Assets	24.61B	23.84B	21.79B	19.98B	20.18B	19.21B
Cash, Cash Equivalents and Short-Term Investments	3.86B	3.64B	3.64B	2.28B	3.08B	2.83B
Total Debt	10.40B	9.45B	6.72B	5.64B	6.15B	6.30B
Total Liabilities	16.73B	16.19B	14.60B	13.17B	13.80B	13.19B
Stockholders Equity	6.52B	6.37B	6.14B	5.89B	5.60B	5.19B
Cash Flow
Free Cash Flow	-240.75M	-447.71M	441.99M	-242.59M	525.20M	462.88M
Operating Cash Flow	182.22M	214.00M	1.08B	890.58M	1.50B	1.20B
Investing Cash Flow	-2.47B	-2.88B	-235.80M	-534.62M	-665.85M	-1.19B
Financing Cash Flow	2.57B	2.24B	534.45M	-1.06B	-522.44M	585.30M

Chaowei Power Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.41
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0951, the sentiment is Positive. The current price of 1.41 is above the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.41, and above the 200-day MA of 1.38, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0951.

Chaowei Power Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1899	75 Outperform	HK$2.67B	9.02	4.28%	18.39%	-6.74%	-44.75%
0951	65 Neutral	HK$1.58B	5.03	4.54%	3.09%	24.79%	-2.24%
2488	65 Neutral	HK$3.36B	8.19	33.52%	9.59%	-0.88%	50.26%
1760	64 Neutral	HK$2.13B	12.27	6.62%	3.20%	13.35%	-38.32%
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
0819	56 Neutral	HK$8.20B	7.47	6.29%	2.39%	-44.94%	-43.85%
0305	46 Neutral	HK$1.55B	16.55	4.50%	1.09%	-14.23%	276.62%

Chaowei Power Holdings Corporate Events

Chaowei Power Grants 28.6 Million Share Options Under 2023 Scheme

Chaowei Power Holdings has granted 28.6 million share options under its 2023 Share Option Scheme to directors and employees, representing about 2.59% of its issued share capital, with 2.35 million options allocated to directors and the chief executive officer and the remaining 26.25 million to other employee participants. The options, exercisable at HK$1.396 per share—aligned with the recent average market price—will vest in stages over three years and be exercisable for up to ten years, underscoring the company’s use of equity-based incentives to align management and staff interests with shareholders and support long-term retention and performance across the group.

The most recent analyst rating on (HK:0951) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Chaowei Power Holdings stock, see the HK:0951 Stock Forecast page.

Chaowei Power Holdings Announces Board Restructuring

Chaowei Power Holdings Limited has announced significant changes in its board of directors and committee compositions, effective from October 14, 2025. Mr. Ng Chi Kit has been re-designated from an independent non-executive director to an executive director, while Mr. Zhang Fan has been appointed as an independent non-executive director and a member of the nomination and audit committees. Additionally, Mr. Sun Wenping has been appointed to the remuneration committee. These changes are expected to impact the company’s governance structure and strategic direction.

The most recent analyst rating on (HK:0951) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Chaowei Power Holdings stock, see the HK:0951 Stock Forecast page.

Chaowei Power Holdings Announces Board Composition and Roles

Chaowei Power Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of executive, non-executive, and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement may impact the company’s governance and strategic direction, potentially influencing stakeholder confidence and the company’s positioning in the energy market.

The most recent analyst rating on (HK:0951) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Chaowei Power Holdings stock, see the HK:0951 Stock Forecast page.