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China Environmental Energy Investment Limited (HK:0986)
:0986
Hong Kong Market
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China Environmental Energy Investment Limited (0986) AI Stock Analysis

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HK:0986

China Environmental Energy Investment Limited

(0986)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
HK$0.12
▲(27.78% Upside)
The stock's overall score is driven by strong technical indicators and an attractive valuation, suggesting potential for price appreciation. Financial performance shows improvement, but cash flow issues and historical volatility in profitability metrics are concerns.
Positive Factors
Revenue Model
The company's revenue model is stable and predictable due to long-term power purchase agreements, ensuring steady income from renewable energy projects.
Balance Sheet Health
A low debt-to-equity ratio suggests financial stability and lower risk, providing the company with flexibility to invest in growth opportunities.
Profitability Improvement
Improved profitability metrics, such as a strong gross profit margin, indicate effective cost management and enhanced operational efficiency.
Negative Factors
Cash Flow Challenges
Negative cash flows highlight potential liquidity issues, which could impact the company's ability to fund operations and invest in new projects.
Historical Profitability Volatility
Volatility in profitability margins can lead to unpredictable earnings, affecting investor confidence and long-term financial planning.
Negative Return on Equity
Negative return on equity indicates inefficiencies in generating returns from shareholders' equity, which could deter potential investors.

China Environmental Energy Investment Limited (0986) vs. iShares MSCI Hong Kong ETF (EWH)

China Environmental Energy Investment Limited Business Overview & Revenue Model

Company DescriptionDufu Liquor Group Ltd. is an investment holding company. It operates under the Design and Marketing of Jewelry, and Money Lending segments. The Design and Marketing of Jewelry segment focuses on the designing, selling, and marketing of jewelry. The Money Lending segment is involved in providing loans as money lending. The company was founded in 1977 and is headquartered in Hong Kong.
How the Company Makes MoneyThe company generates revenue primarily through the sale of electricity produced from its renewable energy projects, including solar and wind farms. This revenue model is bolstered by long-term power purchase agreements (PPAs) with local utilities and governments, ensuring a steady income stream. Additional revenue is derived from project management fees, consultancy services in energy efficiency, and investments in emerging green technologies. Strategic partnerships with governmental bodies and private sector players further enhance its market position and contribute to its earnings, allowing the company to leverage various funding sources and incentives for renewable energy development.

China Environmental Energy Investment Limited Financial Statement Overview

Summary
The company has shown improvements in profitability and revenue growth, with a strong gross profit margin and low leverage. However, cash flow challenges and historical volatility in profitability metrics pose risks.
Income Statement
65
Positive
The company has shown a significant improvement in its profitability metrics over the past year, with a gross profit margin of 51.32% and a net profit margin of 45.16% in the latest annual report. Revenue growth rate is positive at 10.16%, indicating a recovery from previous declines. However, historical volatility in EBIT and EBITDA margins suggests potential risks in maintaining consistent profitability.
Balance Sheet
70
Positive
The company's balance sheet is relatively strong, with a low debt-to-equity ratio of 0.09, indicating low leverage. The equity ratio is healthy, suggesting a stable financial structure. However, the return on equity has been negative in previous years, which could be a concern if profitability does not stabilize.
Cash Flow
50
Neutral
Cash flow metrics indicate challenges, with negative operating and free cash flows. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is also negative, highlighting potential liquidity issues. Despite these challenges, the free cash flow to net income ratio is stable at 1.0, suggesting some consistency in cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue61.08M67.28M66.05M68.47M108.91M105.65M
Gross Profit35.23M34.53M29.87M28.03M28.18M23.51M
EBITDA-5.65M35.40M-15.94M-11.46M3.76M10.25M
Net Income-8.05M30.39M-18.51M-14.46M604.00K4.45M
Balance Sheet
Total Assets409.90M439.21M387.42M414.04M421.09M360.05M
Cash, Cash Equivalents and Short-Term Investments335.00K216.00K354.00K1.35M10.19M1.54M
Total Debt34.16M33.98M26.36M21.45M28.11M21.69M
Total Liabilities64.70M72.08M55.41M47.48M46.94M50.61M
Stockholders Equity345.20M367.13M332.00M366.56M374.15M309.44M
Cash Flow
Free Cash Flow4.52M-3.58M-4.19M-8.46M-52.33M-18.68M
Operating Cash Flow-11.84M-3.58M-4.19M-8.46M-52.33M-18.68M
Investing Cash Flow2.00K123.00K2.00K101.00K1.00K5.00M
Financing Cash Flow1.70M3.32M3.19M-477.00K60.98M7.78M

China Environmental Energy Investment Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.09
Price Trends
50DMA
0.10
Negative
100DMA
0.09
Positive
200DMA
0.09
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
49.75
Neutral
STOCH
38.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0986, the sentiment is Positive. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.75 is Neutral, neither overbought nor oversold. The STOCH value of 38.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0986.

China Environmental Energy Investment Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$134.65M4.437.77%11.95%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
49
Neutral
HK$102.47M-0.40-15.33%62.55%-0.69%
49
Neutral
HK$168.00M-4.47%8.62%-4.08%-196.66%
46
Neutral
HK$75.22M-0.70-10.19%-13.06%-120.76%
44
Neutral
HK$311.48M-1.58-43.66%-27.28%47.40%
37
Underperform
HK$633.91M60.292.81%-1.93%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0986
China Environmental Energy Investment Limited
0.10
0.04
66.67%
HK:0513
Continental Holdings Limited
0.14
-0.02
-12.50%
HK:0084
Stelux Holdings International Limited
0.06
-0.01
-14.29%
HK:0417
Tse Sui Luen Jewellery (International) Ltd
1.03
0.29
39.19%
HK:6838
Winox Holdings Limited
0.28
-0.10
-26.32%
HK:8026
China Brilliant Global Limited
0.38
0.04
11.76%

China Environmental Energy Investment Limited Corporate Events

Dufu Liquor Group to Review Interim Results in Upcoming Board Meeting
Nov 14, 2025

Dufu Liquor Group Limited has announced that its Board of Directors will hold a meeting on November 28, 2025, to review and approve the interim results for the six months ending September 30, 2025. This meeting is significant as it will determine the company’s financial performance and strategic direction, impacting stakeholders and potentially influencing market perceptions.

Dufu Liquor Group Clarifies Executive Appointment
Oct 23, 2025

Dufu Liquor Group Limited has issued a clarification regarding the appointment of Mr. Qin Zhizun. The company announced that Mr. Qin has been appointed as an executive director, correcting the previous announcement that mistakenly labeled him as an independent non-executive director. This clarification ensures accurate representation of the company’s board composition, which includes four executive directors, one non-executive director, and three independent non-executive directors.

Dufu Liquor Group Appoints New Executive Director
Oct 23, 2025

Dufu Liquor Group Limited announced the appointment of Mr. Qin Zhizun as an executive director and co-chairperson. The board confirmed that there are no additional matters or information that need to be disclosed to shareholders regarding this appointment, ensuring compliance with the relevant listing rules.

Dufu Liquor Group Appoints New Executive Director and Co-Chairperson
Oct 22, 2025

Dufu Liquor Group Limited has announced the appointment of Mr. Qin Zhizun as an executive director and co-chairperson of the board, effective from October 22, 2025. Mr. Qin brings over 20 years of management experience and will serve an initial one-year term, with the potential for renewal. His appointment is expected to enhance the company’s leadership and strategic direction, potentially impacting its market positioning and stakeholder relations positively.

Dufu Liquor Group Announces Board Composition and Roles
Oct 22, 2025

Dufu Liquor Group Limited, listed on the Hong Kong Stock Exchange, has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes executive directors, non-executive directors, and independent non-executive directors, with specific members serving on various board committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the organization.

Dufu Liquor Group Expands into Real-World Assets with New CEO Appointment
Sep 12, 2025

Dufu Liquor Group Limited has appointed Dr. Liu Wenjian as the CEO of a subsidiary to explore the feasibility of entering the real-world assets (RWA) and digital asset sectors. With Dr. Liao’s extensive experience in industrial chain investment and capital markets, the company aims to innovate and expand its services in the global RWA field, potentially enhancing its market position and offering professional services in this segment.

Dufu Liquor Group’s AGM Resolutions Unanimously Approved
Aug 29, 2025

Dufu Liquor Group Limited announced that all resolutions proposed at its annual general meeting on August 29, 2025, were unanimously approved by shareholders. The resolutions included the re-election of directors, authorization for the board to appoint additional directors and fix remuneration, reappointment of auditors, and granting of mandates for share repurchase and issuance.

Dufu Liquor Group Limited Announces 2025 Annual General Meeting
Jul 31, 2025

Dufu Liquor Group Limited has announced its upcoming Annual General Meeting scheduled for August 29, 2025, in Hong Kong. The meeting will address ordinary business matters, including the re-election of directors and the approval of financial statements. Additionally, resolutions will be considered for authorizing the board to manage share repurchases and issue new shares, reflecting the company’s strategic focus on maintaining flexibility in its capital management.

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.Date of analysis: Sep 17, 2025