China Environmental Energy Investment Limited (0986) AI Stock Analysis

• Market Cap: HK$99.69M
• Dividend Yield: N/A
• Average Volume (3M): 4.40M
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.56
• Revenue Growth: 11.95%
• EPS Growth: N/A
• Country: HK
• Employees: 23
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): <0.01
• Shares Outstanding: 1,294,705,400
• 10 Day Avg. Volume: 759,561
• 30 Day Avg. Volume: 4,404,477
• PEG Ratio: -0.01
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 1.33
• P/FCF Ratio: -24.96
• 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: 71 Outperform
• Price Target: HK$0.09 ▼(-5.56% Downside)

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

High profit margins

Very high gross and net margins indicate strong project-level economics and effective cost control in its renewable operations. Durable margins improve the company's ability to fund reinvestment, absorb input cost inflation, and generate sustained cash available for growth if maintained.

Low leverage

A debt-to-equity ratio of 0.09 signals minimal leverage for a capital-intensive renewables operator. Low debt reduces refinancing and solvency risk, preserves borrowing capacity for project financing, and provides flexibility to invest in new assets without overburdening cash flows.

Contracted revenue base and steady growth

Mid-single-digit to double-digit revenue growth combined with a business model built on long-term PPAs and government programs supports predictable, multi-year cash inflows. Contract-backed sales reduce demand volatility and enable longer-term planning and project financing.

Negative Factors

Negative operating and free cash flows

Persistent negative operating and free cash flows are a structural concern for a capital-intensive renewables developer. They imply reliance on external financing for CAPEX and project completion, increasing execution and refinancing risk and constraining self-funded growth over time.

Volatile profitability

Significant historical margin volatility indicates earnings are sensitive to operational performance, tariff or subsidy timing, and one-off items. For project-based energy firms this complicates forecasting and capital allocation, undermining steady reinvestment and investor confidence.

Past negative return on equity

A history of negative ROE shows past inability to convert equity into lasting profits. Even with recent margin improvements, legacy negative returns can deplete retained earnings, limit internal funding for new projects, and prolong dependence on external capital for growth.

China Environmental Energy Investment Limited Business Overview & Revenue Model

Company Description

Dufu 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 Money

The 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.38M	67.28M	66.05M	68.47M	108.91M	105.65M
Gross Profit	36.97M	34.53M	29.87M	28.03M	28.18M	23.51M
EBITDA	36.17M	35.40M	-15.94M	-11.46M	3.76M	10.25M
Net Income	27.78M	30.39M	-18.51M	-14.46M	604.00K	4.45M
Balance Sheet
Total Assets	448.51M	439.21M	387.42M	414.04M	421.09M	360.05M
Cash, Cash Equivalents and Short-Term Investments	157.00K	216.00K	354.00K	1.35M	10.19M	1.54M
Total Debt	28.14M	33.98M	26.36M	21.45M	28.11M	21.69M
Total Liabilities	78.67M	72.08M	55.41M	47.48M	46.94M	50.61M
Stockholders Equity	369.84M	367.13M	332.00M	366.56M	374.15M	309.44M
Cash Flow
Free Cash Flow	290.00K	-3.58M	-4.19M	-8.46M	-52.33M	-18.68M
Operating Cash Flow	-680.00K	-3.58M	-4.19M	-8.46M	-52.33M	-18.68M
Investing Cash Flow	2.65M	123.00K	2.00K	101.00K	1.00K	5.00M
Financing Cash Flow	-281.00K	3.32M	3.19M	-477.00K	60.98M	7.78M

China Environmental Energy Investment Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0986, the sentiment is Neutral. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.09, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 77.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0986.

China Environmental Energy Investment Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0986	71 Outperform	HK$99.69M	3.88	7.77%	―	11.95%	―
8026	67 Neutral	HK$773.06M	61.29	2.81%	―	-1.93%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0513	49 Neutral	HK$88.12M	-0.34	-15.33%	―	62.55%	-0.69%
0417	48 Neutral	HK$231.74M	-1.28	-43.66%	―	-27.28%	47.40%
6838	47 Neutral	HK$130.80M	-3.01	-4.47%	9.26%	-4.08%	-196.66%
0084	46 Neutral	HK$67.91M	-0.79	-10.19%	―	-13.06%	-120.76%

China Environmental Energy Investment Limited Corporate Events

Dufu Liquor Clarifies Share Option Pool in Supplemental Annual Report Filing

Dufu Liquor Group Limited has issued a supplemental announcement to its annual report for the year ended 31 March 2025, clarifying details of its new share option scheme adopted on 29 September 2021. The company disclosed that a total of 124,927,550 options were available for grant under the scheme mandate, including any service provider sublimit, as at both 1 April 2024 and 31 March 2025, and emphasized that this additional disclosure does not affect other information in the annual report, providing greater transparency for shareholders regarding potential equity-based incentives and dilution.

The most recent analyst rating on (HK:0986) stock is a Hold with a HK$0.08 price target. To see the full list of analyst forecasts on China Environmental Energy Investment Limited stock, see the HK:0986 Stock Forecast page.

Dufu Liquor Group Announces Interim Results for 2025

Dufu Liquor Group Limited has announced its interim results for the six months ending September 30, 2025. The announcement complies with the listing rules of the Hong Kong Stock Exchange and includes the condensed consolidated interim results of the company and its subsidiaries. This release is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction for the first half of the fiscal year.

The most recent analyst rating on (HK:0986) stock is a Buy with a HK$0.12 price target. To see the full list of analyst forecasts on China Environmental Energy Investment Limited stock, see the HK:0986 Stock Forecast page.

Dufu Liquor Group to Review Interim Results in Upcoming Board Meeting

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.