Dongfang Electric (1072) AI Stock Analysis

• Market Cap: HK$94.78B
• Dividend Yield: 1.69%
• Average Volume (3M): 17.10M
• Price to Earnings (P/E): 23.7
• Beta (1Y): 1.00
• Revenue Growth: 20.99%
• EPS Growth: -5.99%
• Country: HK
• Employees: 18,033
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.34
• Shares Outstanding: 408,000,000
• 10 Day Avg. Volume: 20,722,066
• 30 Day Avg. Volume: 17,101,963
• PEG Ratio: -0.55
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 4.02
• 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: HK$30.15
• Price Target Upside: 18.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$31.00 ▲(21.76% Upside)

The score is driven primarily by strong technical momentum (price above key moving averages and positive MACD) and a financially resilient balance sheet with improved 2024 cash generation. These positives are tempered by profitability pressure (margin compression and lower 2024 net income) and a less attractive valuation (24.24 P/E with ~1.69% yield).

Positive Factors

Conservative balance sheet with low leverage

Sustained low debt levels and an expanding equity base provide long-term financial flexibility for bidding on large power projects, absorbing timing swings in receivables, and supporting capital investments or R&D without forcing distressed financing during downturns.

Improved operating and free cash flow

A meaningful improvement in operating and free cash flow strengthens the company's ability to fund working capital for long-cycle contracts, invest in aftermarket capabilities, and reduce reliance on external financing—enhancing resilience across project cycles if maintained.

Diverse equipment mix and recurring service revenue

Exposure across thermal, hydro, nuclear and wind plus engineering and after-sales services diversifies revenue sources and reduces reliance on any single project type. A large installed base supports recurring, higher-margin service and spare-part revenues over the long term.

Negative Factors

Margin compression and weaker profitability

Sustained margin pressure and a decline in net income despite revenue growth indicate structural cost or pricing challenges. If cost inflation, competitive pricing, or lower-margin project mix persist, return on capital and reinvestment capacity could be constrained over multiple years.

Historical cash-flow volatility from project timing

Large, long-duration contracts create working-capital swings and uneven cash conversion. This recurring volatility complicates forecasting, increases the need for liquidity buffers, and raises the risk of funding stress if project payments or contract schedules shift.

Execution and contract risk in EPC/turnkey projects

Reliance on large EPC and turnkey contracts means margins and earnings depend heavily on execution, cost control and contract terms. Delays or cost overruns on big projects can materially depress margins and create multi-period earnings volatility for the business.

Dongfang Electric Business Overview & Revenue Model

Company Description

Dongfang Electric Corporation Limited engages in the design, develop, manufacture, and sale of power generation equipment in China and internationally. It operates through five segments: Renewable Energy Equipment, Clean and Efficient Energy Equipment, Engineering and Trade, Modern Manufacturing Services Industry, and Emerging Growth Industry. The company generates electricity through wind power, solar power, hydropower, nuclear power, gas power, and thermal power. It operates 8,101 MW hydro-generating unit; 25,028 MW steam turbine generators; 3,370 MW wind power units; 23,929 MW power station steam turbines; and 22,017 MW power station boilers. The company also offers engineering contracting and services to global energy operators. The company was formerly known as Dongfang Electric Machinery Co., Ltd. and changed its name to Dongfang Electric Corporation Limited in October 2007. The company was founded in 1993 and is based in Chengdu, the People's Republic of China. Dongfang Electric Corporation Limited is a subsidiary of Dongfang Electric Corporation.

How the Company Makes Money

Dongfang Electric makes money through the design, manufacture, and sale of power generation equipment and related engineering services. The company's revenue model is primarily based on contracts with power utilities and government entities for the provision of equipment and maintenance services. Key revenue streams include the sale of thermal, nuclear, wind, and hydroelectric power equipment, as well as comprehensive engineering solutions for power plant construction and maintenance. Significant partnerships with global energy companies and government-backed projects contribute to its earnings, facilitating the deployment of its technology in both domestic and international markets.

Dongfang Electric Financial Statement Overview

Summary

Financials are solid overall: a conservative, low-leverage balance sheet (Balance Sheet Score 82) and improved 2024 operating/free cash flow (Cash Flow Score 70) support resilience. However, profitability has weakened with margin compression and lower 2024 net income despite revenue growth (Income Statement Score 62), which limits the score.

Income Statement

Revenue has grown steadily over the last several years, including ~7% growth in 2024 versus 2023, supporting a solid top-line trajectory. However, profitability has weakened: gross margin and operating margins have compressed meaningfully from 2020–2022 levels, and 2024 net income declined versus 2023 despite higher revenue—suggesting higher costs and/or pricing pressure. Overall, growth is a positive, but margin and earnings volatility temper the score.

Balance Sheet

The balance sheet looks conservative, with low leverage (debt-to-equity in the mid–single digits to ~8% range across the period) and a steadily expanding equity base. Returns on equity are moderate (roughly mid-single digits to high-single digits recently), dipping in 2024 versus 2023, which points to some efficiency/profitability pressure. Still, the company’s low debt burden provides resilience and financial flexibility.

Cash Flow

Cash generation improved sharply in 2024 with strong operating cash flow and solid free cash flow, and free cash flow growth was robust (~34%). That said, cash flow has been uneven historically, including years where operating cash flow relative to net income was weak/negative, indicating working-capital or timing swings. The recent improvement is encouraging, but the multi-year volatility keeps the score from being higher.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	76.83B	68.34B	59.57B	55.35B	47.82B	37.28B
Gross Profit	11.25B	9.46B	9.61B	10.00B	9.04B	8.32B
EBITDA	3.89B	3.33B	4.95B	4.29B	3.60B	3.07B
Net Income	3.26B	2.92B	3.55B	2.86B	2.29B	1.86B
Balance Sheet
Total Assets	164.56B	142.01B	121.11B	115.27B	103.10B	97.80B
Cash, Cash Equivalents and Short-Term Investments	29.89B	28.55B	18.00B	16.07B	20.19B	27.98B
Total Debt	28.42B	2.99B	1.72B	1.87B	1.84B	1.20B
Total Liabilities	117.28B	98.87B	79.89B	76.64B	67.72B	64.15B
Stockholders Equity	44.47B	38.80B	37.24B	34.98B	32.50B	30.91B
Cash Flow
Free Cash Flow	-4.95B	7.06B	-4.61B	7.66B	-5.14B	-3.29B
Operating Cash Flow	-3.65B	10.06B	-3.50B	8.41B	-4.42B	-2.75B
Investing Cash Flow	-1.90B	-2.77B	6.05B	-13.19B	-3.05B	-680.28M
Financing Cash Flow	7.13B	1.09B	-497.10M	-117.01M	-378.26M	-454.24M

Dongfang Electric Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1072, the sentiment is Neutral. The current price of 25.46 is below the 20-day moving average (MA) of 26.40, above the 50-day MA of 23.99, and above the 200-day MA of 17.77, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 47.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1072.

Dongfang Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1133	74 Outperform	HK$44.35B	18.55	15.06%	1.44%	34.78%	98.79%
1072	73 Outperform	HK$94.78B	23.72	7.71%	1.69%	20.99%	-5.99%
2722	73 Outperform	HK$9.03B	14.52	7.29%	2.50%	11.18%	46.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2338	63 Neutral	HK$232.38B	17.99	12.91%	3.98%	3.55%	8.89%
2727	58 Neutral	HK$134.55B	57.22	1.93%	―	7.59%	376.62%
2208	53 Neutral	HK$112.48B	30.48	6.78%	1.14%	25.84%	26.05%

Dongfang Electric Corporate Events

Dongfang Electric’s Controlling Shareholder Completes RMB100 Million Shareholding Increase

Dongfang Electric Corporation Limited announced that its controlling shareholder, Dongfang Electric Corporation (DEC Group), has completed a previously disclosed plan to increase its stake in the company’s A shares via centralized price bidding on the Shanghai Stock Exchange. Between 11 April and 31 December 2025, DEC Group acquired 4,370,400 A shares, representing about 0.13% of the company’s total share capital, at a total investment of approximately RMB100.3 million funded from its own resources. The move modestly raises the controlling shareholder’s equity position and signals continued confidence in the company’s prospects, providing a supportive signal to the market and minority investors regarding stability of ownership and long-term commitment.

The most recent analyst rating on (HK:1072) stock is a Buy with a HK$28.00 price target. To see the full list of analyst forecasts on Dongfang Electric stock, see the HK:1072 Stock Forecast page.

Dongfang Electric’s EGM Resolutions Passed Unanimously

Dongfang Electric Corporation Limited held its 2025 Second Extraordinary General Meeting on November 28, 2025, where all resolutions were passed without amendments. The meeting saw participation from shareholders and authorized proxies, with no abstentions or oppositions recorded. The legal procedures and voting results were confirmed as lawful and valid by attending legal professionals.

The most recent analyst rating on (HK:1072) stock is a Buy with a HK$32.90 price target. To see the full list of analyst forecasts on Dongfang Electric stock, see the HK:1072 Stock Forecast page.

Dongfang Electric Announces 2025 Extraordinary General Meeting

Dongfang Electric Corporation Limited has announced the convening of its 2025 second extraordinary general meeting (EGM) to be held on November 28, 2025, in Chengdu City, Sichuan Province, China. The meeting will focus on considering and approving amendments to the company’s Articles of Association and the Rules of Procedure for General Meetings. This EGM is a significant event for the company as it seeks to update its governance framework, potentially impacting its operational efficiency and stakeholder engagement.

The most recent analyst rating on (HK:1072) stock is a Buy with a HK$32.90 price target. To see the full list of analyst forecasts on Dongfang Electric stock, see the HK:1072 Stock Forecast page.

Dongfang Electric Announces Closure of Register for 2025 EGM

Dongfang Electric Corporation Limited has announced the closure of its register of members in preparation for its 2025 second extraordinary general meeting (EGM) scheduled for November 28, 2025. The register will be closed from November 24 to November 28, 2025, to determine the list of shareholders eligible to attend the EGM. Shareholders must submit transfer documents and share certificates by November 21, 2025, to be eligible. The EGM will address various resolutions, with details to be published on the company’s and Hong Kong Exchanges’ websites.

The most recent analyst rating on (HK:1072) stock is a Buy with a HK$22.00 price target. To see the full list of analyst forecasts on Dongfang Electric stock, see the HK:1072 Stock Forecast page.

Dongfang Electric Releases 2025 Q3 Report

Dongfang Electric Corporation Limited has released its unaudited third quarterly report for 2025, covering the nine months ending on September 30, 2025. The report, prepared under China Accounting Standards for Business Enterprise, assures stakeholders of the accuracy and completeness of the financial information presented, although it remains unaudited.

The most recent analyst rating on (HK:1072) stock is a Buy with a HK$17.90 price target. To see the full list of analyst forecasts on Dongfang Electric stock, see the HK:1072 Stock Forecast page.

Dongfang Electric Proposes Governance Reforms and Supervisory Committee Abolition

Dongfang Electric Corporation Limited has announced proposed amendments to its Articles of Association and the abolition of its Supervisory Committee, aligning with the revised Company Law of the People’s Republic of China and other regulatory guidelines. The Audit and Risk Committee will now assume the responsibilities of the Supervisory Committee, streamlining governance and potentially enhancing operational efficiency. These changes are subject to approval at an extraordinary general meeting, reflecting the company’s commitment to regulatory compliance and improved corporate governance.

The most recent analyst rating on (HK:1072) stock is a Buy with a HK$17.90 price target. To see the full list of analyst forecasts on Dongfang Electric stock, see the HK:1072 Stock Forecast page.