Dongfang Electric (1072) AI Stock Analysis

• Market Cap: HK$98.55B
• Dividend Yield: 1.69%
• Average Volume (3M): 17.10M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.08
• 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$25.96
• Price Target Upside: 0.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$28.00 ▲(8.02% 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

Balance Sheet Health

A low-leverage balance sheet provides financial resilience and flexibility, enabling the company to navigate economic fluctuations and invest in growth opportunities.

Cash Generation

Improved cash flow enhances the company's ability to fund operations, reduce debt, and invest in future growth, supporting long-term financial stability.

Revenue Growth

Consistent revenue growth indicates strong demand for the company's products and services, reinforcing its market position and potential for future expansion.

Negative Factors

Profitability Pressure

Margin compression suggests rising costs or pricing pressure, which can impact long-term profitability and limit the company's ability to reinvest in its business.

Earnings Volatility

Earnings volatility can create uncertainty in financial performance, potentially affecting investor confidence and the company's ability to plan for the long term.

Governance Changes

While aimed at improving efficiency, governance changes can introduce uncertainty during transition periods, impacting operational stability and stakeholder confidence.

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

Dongfang Electric exhibits strong revenue growth and stable profitability, with a favorable debt-to-equity ratio. However, cash flow analysis is limited due to missing data, indicating some volatility in operating cash flow.

Income Statement

Dongfang Electric has demonstrated strong revenue growth, with a notable increase from 2019 to 2024. The gross profit margin and net profit margin indicate healthy profitability, with a stable EBIT margin. Although EBITDA margin has shown some fluctuations, the overall profitability trajectory remains positive.

Balance Sheet

The company's balance sheet shows a favorable debt-to-equity ratio, indicating low leverage. Return on Equity (ROE) is strong, reflecting efficient use of shareholder funds. The equity ratio is stable, suggesting a solid financial structure with a good proportion of equity to total assets.

Cash Flow

Cash flow metrics are limited due to missing data. However, the available figures suggest some volatility in operating cash flow, with significant cash held on the balance sheet. The free cash flow data is incomplete, making a comprehensive analysis challenging.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	73.86B	68.34B	59.57B	55.35B	47.82B	37.28B
Gross Profit	11.04B	9.46B	9.61B	10.00B	9.04B	8.32B
EBITDA	3.72B	3.33B	4.95B	4.29B	3.60B	3.07B
Net Income	3.14B	2.92B	3.55B	2.86B	2.29B	1.86B
Balance Sheet
Total Assets	156.37B	142.01B	121.11B	115.27B	103.10B	97.80B
Cash, Cash Equivalents and Short-Term Investments	32.83B	28.55B	18.00B	16.07B	20.19B	27.98B
Total Debt	3.92B	2.99B	1.72B	1.87B	1.84B	1.20B
Total Liabilities	110.96B	98.87B	79.89B	76.64B	67.72B	64.15B
Stockholders Equity	42.40B	38.80B	37.24B	34.98B	32.50B	30.91B
Cash Flow
Free Cash Flow	432.90M	7.06B	―	7.66B	―	―
Operating Cash Flow	1.42B	10.06B	―	8.41B	―	―
Investing Cash Flow	-876.50M	-2.77B	6.05B	―	―	-680.28M
Financing Cash Flow	5.22B	1.09B	-497.10M	―	―	―

Dongfang Electric Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 25.92
• 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 Positive. The current price of 25.92 is above the 20-day moving average (MA) of 24.49, above the 50-day MA of 22.24, and above the 200-day MA of 16.50, indicating a bullish trend. The MACD of 1.14 indicates Positive momentum. The RSI at 63.23 is Neutral, neither overbought nor oversold. The STOCH value of 56.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1072.

Dongfang Electric Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2338	74 Outperform	HK$179.23B	14.13	12.91%	3.98%	3.55%	8.89%
1133	74 Outperform	HK$40.36B	16.89	15.06%	1.44%	34.78%	98.79%
1072	73 Outperform	HK$98.55B	24.15	7.71%	1.69%	20.99%	-5.99%
2722	65 Neutral	HK$7.92B	12.74	7.29%	2.50%	11.18%	46.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2727	54 Neutral	HK$142.77B	61.04	1.93%	―	7.59%	376.62%
2208	53 Neutral	HK$135.87B	34.87	6.78%	1.14%	25.84%	26.05%

Dongfang Electric Corporate Events

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.

Dongfang Electric Schedules Board Meeting for Q3 Results

Dongfang Electric Corporation Limited has announced a board meeting scheduled for October 30, 2025, to review and approve the unaudited third quarterly results for the nine months ending September 30, 2025. This announcement indicates the company’s ongoing commitment to transparency and timely financial reporting, which could impact investor confidence and market positioning.

The most recent analyst rating on (HK:1072) stock is a Sell with a HK$12.20 price target. To see the full list of analyst forecasts on Dongfang Electric stock, see the HK:1072 Stock Forecast page.