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China Renewable Energy Investment Limited (HK:0987)
:0987
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China Renewable Energy Investment
(0987)
Select Model
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Rating:62Neutral
Price Target:
HK$0.14
▲(10.00% Upside)
The overall stock score is primarily influenced by the mixed financial performance, with a strong balance sheet but declining revenue and profitability. Technical analysis indicates weak momentum, while valuation metrics suggest the stock may be undervalued with an attractive dividend yield.
Positive Factors
Strong Balance Sheet
A strong balance sheet with low leverage enhances financial stability, providing resilience against economic fluctuations and enabling strategic investments.
Government Incentives
Government incentives support revenue stability and growth, reducing financial risk and encouraging further investment in renewable projects.
Strategic Partnerships
Partnerships ensure access to advanced technologies and favorable regulatory conditions, strengthening market position and competitive edge.
Negative Factors
Declining Revenue
Declining revenue trends can indicate weakening market demand or competitive pressures, potentially impacting long-term growth prospects.
Cash Flow Volatility
Volatile cash flow can hinder the company's ability to fund operations and investments, posing a risk to financial health and strategic initiatives.
Profit Margin Pressure
Pressure on profit margins reflects challenges in cost management and pricing power, potentially affecting profitability and shareholder returns.
China Renewable Energy Investment (0987) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$328.31M
Dividend Yield3.7%
Average Volume (3M)488.27K
Price to Earnings (P/E)8.8
Beta (1Y)0.51
Revenue Growth15.92%
EPS GrowthN/A
CountryHK
Employees93
SectorUtilities
Sector Strength65
IndustryRenewable Utilities
Share Statistics
EPS (TTM)0.01
Shares Outstanding2,506,157,500
10 Day Avg. Volume495,653
30 Day Avg. Volume488,272
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)0.15
Price to Sales (P/S)1.68
P/FCF Ratio4.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
China Renewable Energy Investment Business Overview & Revenue Model
Company DescriptionChina Renewable Energy Investment Limited, an investment holding company, engages in the renewable energy business in the People's Republic of China. As of December 31, 2021, the company operated eight wind farms and one distributed solar project with the power generating capacity of 738 megawatts in Hebei, Heilongjiang, Gansu, Inner Mongolia, Henan, and Zhejiang provinces. It also offers human resources management services. The company was formerly known as Hong Kong Energy (Holdings) Limited and changed its name to China Renewable Energy Investment Limited in June 2011. The company was incorporated in 2002 and is headquartered in Tsim Sha Tsui, Hong Kong. China Renewable Energy Investment Limited is a subsidiary of HKC (Holdings) Limited.
How the Company Makes MoneyChina Renewable Energy Investment generates revenue through multiple streams. The primary source of income comes from the sale of electricity generated by its renewable energy projects, which is often sold to state-owned utilities and private companies under long-term power purchase agreements (PPAs). Additionally, the company benefits from government incentives for renewable energy production, including feed-in tariffs and subsidies. CREI also engages in project development and management, charging fees for its expertise in setting up and operating renewable energy facilities. Strategic partnerships with technology providers and local governments further enhance its revenue potential by ensuring access to advanced technologies and favorable regulatory conditions.
China Renewable Energy Investment Financial Statement Overview
Summary
The company's financial performance is mixed. The balance sheet is strong with low leverage, but income statement metrics show declining revenue and profitability. Cash flow issues highlight potential liquidity concerns.Income Statement
The company shows fluctuating revenue trends with a decline in recent years. Gross profit margin has decreased, and net profit margin has been volatile, reflecting inconsistent profitability. EBIT and EBITDA margins have been under pressure, indicating challenges in operational efficiency.Balance Sheet
The balance sheet is relatively strong with a high equity ratio, indicating financial stability. Debt-to-equity ratio has improved, showing reduced leverage. However, the return on equity is inconsistent, which may signal concerns about shareholder returns.Cash Flow
Cash flow analysis reveals significant volatility. Operating cash flow has been unstable, and free cash flow growth rate is concerning, indicating potential liquidity issues. The company needs to improve cash generation to support operations.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 135.85M | 163.06M | 181.34M | 197.18M | 250.25M | 206.12M |
| Gross Profit | 38.89M | 32.95M | 52.15M | 64.67M | 112.10M | 77.13M |
| EBITDA | 96.04M | 109.11M | 97.31M | 125.25M | 198.80M | 180.71M |
| Net Income | 21.05M | 16.48M | 23.28M | 31.11M | 113.35M | 86.15M |
Balance Sheet | ||||||
| Total Assets | 2.18B | 2.13B | 2.25B | 2.62B | 2.91B | 2.90B |
| Cash, Cash Equivalents and Short-Term Investments | 244.41M | 232.17M | 164.29M | 232.41M | 197.18M | 190.41M |
| Total Debt | 218.39M | 227.63M | 287.80M | 605.90M | 754.48M | 871.63M |
| Total Liabilities | 300.11M | 309.53M | 377.23M | 704.26M | 864.74M | 990.94M |
| Stockholders Equity | 1.89B | 1.83B | 1.88B | 1.92B | 2.05B | 1.91B |
Cash Flow | ||||||
| Free Cash Flow | 109.85M | 64.98M | 115.56M | 174.72M | 165.70M | -84.74M |
| Operating Cash Flow | 116.14M | 71.69M | 132.19M | 182.99M | 183.42M | 83.47M |
| Investing Cash Flow | -6.29M | 80.81M | 157.29M | 54.19M | 95.92M | -168.20M |
| Financing Cash Flow | -42.51M | -81.04M | -353.49M | -164.90M | -192.24M | -34.97M |
China Renewable Energy Investment Technical Analysis
Negative
0.13
Price Trends
0.13
Negative
0.14
Negative
0.13
Negative
Market Momentum
>-0.01
Positive
48.35
Neutral
28.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0987, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.13, and below the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 28.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0987.
China Renewable Energy Investment Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$196.32M | 5.41 | 9.36% | ― | -40.01% | -63.23% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
62 Neutral | HK$328.31M | 8.79 | 2.00% | 3.70% | 15.92% | ― | |
59 Neutral | HK$600.77M | 15.82 | 4.04% | 1.05% | 16.01% | -53.67% | |
48 Neutral | HK$2.14B | -3.10 | -35.49% | ― | 39.42% | 56.89% | |
42 Neutral | HK$121.98M | -0.26 | ― | ― | -21.67% | -18.64% | |
40 Underperform | HK$224.47M | ― | ― | ― | ― | ― |
* Utilities Sector Average
HK:0987
China Renewable Energy Investment
0.13
0.03
29.70%
HK:1165
Shunfeng International Clean Energy
0.02
>-0.01
-7.69%
HK:0451
GCL New Energy Holdings
1.38
0.93
206.67%
HK:0295
Kong Sun Holdings Limited
0.02
>-0.01
-28.57%
HK:0090
Puxing Energy Ltd.
1.31
0.75
133.93%
HK:8326
Tonking New Energy Group Holdings Ltd.
0.16
0.02
17.65%
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.