Dongfang Electric (HK:1072)
:1072
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Dongfang Electric
(1072)
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Rating:63Neutral
Price Target:
HK$39.00
▲(10.36% Upside)
Action:DowngradedDate:04/02/26
The score is primarily supported by a strong balance sheet and steady revenue growth, but is held back by weak/volatile cash generation (including negative free cash flow in 2025) and margin compression. Technicals are mixed with neutral momentum, and valuation signals are limited aside from a modest dividend yield.
Positive Factors
Conservative balance sheet
Low historical leverage (debt-to-equity ~4%–8% 2020–2024) and a rising equity base provide durable financial flexibility. This supports bidding on large multi-year projects, cushions execution risk, preserves investment headroom for capex/R&D, and eases access to supplier and creditor funding across cycles.
Negative Factors
Margin compression
A material multi-year decline in gross margin suggests persistent pricing pressure or rising input and execution costs. Continued margin erosion limits operating leverage and retained earnings, reducing capacity to fund investments, absorb project overruns, or improve returns even if revenue growth persists.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low historical leverage (debt-to-equity ~4%–8% 2020–2024) and a rising equity base provide durable financial flexibility. This supports bidding on large multi-year projects, cushions execution risk, preserves investment headroom for capex/R&D, and eases access to supplier and creditor funding across cycles.
Read all positive factors
Dongfang Electric (1072) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$141.04B
Dividend Yield1.69%
Average Volume (3M)17.10M
Price to Earnings (P/E)19.5
Beta (1Y)0.99
Revenue Growth20.99%
EPS Growth-5.99%
CountryHK
Employees18,033
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.29
Shares Outstanding408,000,000
10 Day Avg. Volume20,722,066
30 Day Avg. Volume17,101,963
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)1.65
Price to Sales (P/S)0.95
P/FCF Ratio-32.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$50.00Price Target Upside41.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.44
Revenue Forecast (FY)HK$87.74B
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 Equip...
How the Company Makes Money
Dongfang Electric primarily makes money by selling power-generation equipment and providing project-related services to utilities, project developers, and industrial customers. Key revenue streams typically include: (1) Equipment sales: revenue fr...
Dongfang Electric Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
86
Very Positive
Cash Flow
45
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 78.62B | 68.34B | 59.57B | 55.35B | 47.82B |
| Gross Profit | 13.40B | 9.46B | 9.61B | 10.00B | 9.04B |
| EBITDA | 6.01B | 3.33B | 4.95B | 4.29B | 3.60B |
| Net Income | 3.83B | 2.92B | 3.55B | 2.86B | 2.29B |
Balance Sheet | |||||
| Total Assets | 162.67B | 142.01B | 121.11B | 115.27B | 103.10B |
| Cash, Cash Equivalents and Short-Term Investments | 24.51B | 28.55B | 18.00B | 16.07B | 20.19B |
| Total Debt | 5.06B | 2.99B | 1.72B | 1.87B | 1.84B |
| Total Liabilities | 114.51B | 98.87B | 79.89B | 76.64B | 67.72B |
| Stockholders Equity | 45.23B | 38.80B | 37.24B | 34.98B | 32.50B |
Cash Flow | |||||
| Free Cash Flow | -2.27B | 7.06B | -4.61B | 7.66B | -5.14B |
| Operating Cash Flow | 2.01B | 10.06B | -3.50B | 8.41B | -4.42B |
| Investing Cash Flow | -10.59B | -2.77B | 6.05B | -13.19B | -3.05B |
| Financing Cash Flow | 5.10B | 1.09B | -497.10M | -117.01M | -378.26M |
Dongfang Electric Technical Analysis
Neutral
35.34
Price Trends
34.23
Positive
28.58
Positive
22.78
Positive
Market Momentum
0.02
Positive
47.19
Neutral
23.94
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 35.34 is below the 20-day moving average (MA) of 38.54, above the 50-day MA of 34.23, and above the 200-day MA of 22.78, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 23.94 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | HK$46.34B | 12.86 | 15.55% | 1.44% | 34.78% | 98.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | HK$141.04B | 19.53 | 7.88% | 1.69% | 20.99% | -5.99% | |
58 Neutral | HK$8.92B | 7.99 | 8.82% | 2.50% | 11.18% | 46.57% | |
54 Neutral | HK$105.43B | 18.64 | 6.78% | 1.14% | 25.84% | 26.05% | |
48 Neutral | HK$120.91B | 44.90 | 2.23% | ― | 7.59% | 376.62% | |
45 Neutral | HK$3.19B | -3.37 | -69.18% | ― | -4.88% | -860.80% |
* Industrials Sector Average
HK:1072
Dongfang Electric
35.34
26.31
291.23%
HK:0658
China High Speed Transmission Equipment Group Co
1.95
1.12
134.94%
HK:2727
Shanghai Electric Group Company
3.81
1.52
66.38%
HK:2208
Xinjiang Goldwind Science & Technology Co
13.58
9.67
247.40%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
2.42
1.63
207.50%
HK:1133
Harbin Electric Co. Ltd. Class H
20.72
17.07
467.36%
Dongfang Electric Corporate Events
Dongfang Electric Proposes Final 2025 Dividend of RMB 5.3 per 10 Shares
Mar 31, 2026
Dongfang Electric Corporation Limited has proposed a final ordinary cash dividend of RMB 5.3 per 10 shares for the financial year ended 31 December 2025, with the Hong Kong dollar equivalent, exchange rate, and key timetable details such as ex-div...
Dongfang Electric Sets March 31 Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 18, 2026
Dongfang Electric has scheduled a board meeting for 31 March 2026 in Chengdu to review and approve the annual results of the company and its subsidiaries for the year ended 31 December 2025 and to authorize their public release. The board will als...
Dongfang Electric Announces Orderly Retirement of Vice President Hu Xiukui
Mar 2, 2026
Dongfang Electric Corporation Limited has announced that vice president Hu Xiukui has stepped down from his role and all other positions at the company with effect from 2 March 2026, upon reaching the statutory retirement age. The board reported n...
Dongfang Electric’s Controlling Shareholder Completes RMB100 Million Shareholding Increase
Jan 4, 2026
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 bidd...
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.