Harbin Electric Co. Ltd. Class H (1133) AI Stock Analysis

• Market Cap: HK$41.30B
• Dividend Yield: 1.44%
• Average Volume (3M): 5.25M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.93
• Revenue Growth: 34.78%
• EPS Growth: 98.79%
• Country: HK
• Employees: 11,094
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.52
• Shares Outstanding: 675,571,000
• 10 Day Avg. Volume: 5,539,299
• 30 Day Avg. Volume: 5,247,665
• PEG Ratio: 0.02
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -2.77
• 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$22.83
• Price Target Upside: 28.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 8.62
• Revenue Forecast (FY): HK$363.42B

• Rating: 74 Outperform
• Price Target: HK$20.50 ▲(15.23% Upside)

Harbin Electric Co. Ltd. Class H scores well due to strong technical indicators and solid financial performance, despite some cash flow inefficiencies. The fair valuation and lack of recent corporate events or earnings call data slightly temper the overall score.

Positive Factors

Strong revenue growth

Revenue growth of ~35% indicates robust demand and sizable order intake for power infrastructure and industrial equipment. Sustained top-line momentum supports scale economies, backlog replenishment and investment in R&D and services, underpinning medium-term revenue visibility and market share gains.

Improved profitability and margins

Significant improvement in gross and net margins reflects better cost management and operational efficiency. If sustained, higher margins increase cash available for reinvestment, enhance competitiveness on large tenders, and improve resilience to commodity or pricing cycles over the next several quarters.

Solid equity base and improving leverage

A solid equity base and improving debt-to-equity ratio enhance financial flexibility for heavy capital projects typical in power and infrastructure sectors. Lower leverage reduces refinancing risk, supports bidding capacity on long-term contracts, and preserves credit capacity for strategic partnerships.

Negative Factors

Operating cash flow weakness

Recent operating cash flow weakness and declining free cash flow reduce internal funding for capex, maintenance and working capital needs. Over several quarters this can force reliance on external financing, delay project execution or constrain after-sales service investments critical for recurring revenue.

Asset stability concerns

Fluctuating equity ratio and asset stability concerns point to inconsistent asset management or capital allocation. Persistent instability may signal impairments, inefficient capital deployment or working-capital swings that erode balance-sheet predictability and increase funding costs long-term.

Historical EBIT margin volatility

Historical volatility in EBIT margins, despite recent stabilization, indicates exposure to project timing, contract mix and input-cost swings. Continued margin variability complicates forecasting, reduces bargaining power on long contracts, and raises earnings risk across business cycles.

Harbin Electric Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Harbin Electric Company Limited, together with its subsidiaries, manufactures and sells power plant equipment in the People's Republic of China. The company provides thermal power main equipment, including boilers, steam turbines, and steam turbine generators; hydropower main equipment, such as hydropower generators units; nuclear power main equipment comprising nuclear island and conventional island equipment; and a set of steam power equipment, including 9F/9H class gas turbine, and combined gas and steam cycle sets. It also engages in the research and development, and production of clean energy products comprising solar energy, tidal power, and desalination products; and ancillary equipment for power stations, industrial boilers, industrial steam turbines, control devices, and AC/DC motors, as well as valves for power stations, pressure vessels, axial compressors, etc. In addition, the company is involved in the construction of power station projects; servicing of thermal and hydropower equipment; import and export of equipment for power stations; provision of after sales service for power station equipment products; research and development of engineering technology for power equipment and its ancillary products; and provision of environmental protection engineering services, such as desulfurization, denitrification, and dust removal. It also exports its products to Asia and South America. The company was founded in 1994 and is based in Harbin, the People's Republic of China. Harbin Electric Company Limited is a subsidiary of Harbin Electric Corporation Co., Ltd.

How the Company Makes Money

Harbin Electric generates revenue through multiple streams, primarily from the sale of its electrical equipment and machinery to domestic and international clients in the power generation and industrial sectors. The company benefits from long-term contracts and projects with state-owned enterprises and government agencies, which provide a stable income base. Additionally, Harbin Electric earns money through service agreements, maintenance contracts, and retrofitting existing systems, enhancing their revenue from existing installations. Strategic partnerships with global firms and participation in infrastructure projects further contribute to their earnings, allowing them to leverage joint expertise and access new markets.

Harbin Electric Co. Ltd. Class H Financial Statement Overview

Summary

Harbin Electric Co. Ltd. Class H shows robust revenue growth and improved profitability, reflecting a positive trajectory in its income statement. The balance sheet highlights prudent management of financial leverage, though asset stability requires attention. Cash flow analysis reveals potential inefficiencies in cash operations, necessitating strategies for improvement to sustain growth and investment capabilities.

Income Statement

The income statement reflects a strong revenue growth with a notable increase from the previous year, indicating positive business expansion. Gross profit margin improved significantly, showing better cost management and efficiency. Net profit margin also increased, highlighting improved profitability. Despite the historical volatility in EBIT margins, recent figures show stabilization and improvement.

Balance Sheet

The balance sheet demonstrates a solid equity base with an improving debt-to-equity ratio, indicating better financial leverage management. The return on equity has increased, suggesting enhanced shareholder value creation. However, the equity ratio shows some fluctuation, pointing to potential stability concerns in asset management.

Cash Flow

The cash flow statement indicates challenges with operating cash flow in the most recent period, contrasting with stronger historical performance. Free cash flow has seen recent declines, which could affect future investment capabilities. The operating cash flow to net income ratio suggests recent inefficiencies in cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.73B	38.30B	28.84B	24.64B	21.23B	23.76B
Gross Profit	5.53B	4.80B	3.10B	2.63B	-1.36B	2.52B
EBITDA	2.23B	1.89B	1.10B	477.55M	-3.96B	453.58M
Net Income	2.21B	1.69B	574.76M	98.64M	-4.14B	-7.28M
Balance Sheet
Total Assets	80.41B	71.95B	71.30B	63.28B	60.61B	57.96B
Cash, Cash Equivalents and Short-Term Investments	23.16B	16.05B	23.37B	18.67B	13.90B	12.85B
Total Debt	10.21B	5.68B	12.27B	7.70B	14.77B	13.41B
Total Liabilities	63.59B	55.76B	56.71B	50.91B	48.42B	41.76B
Stockholders Equity	16.12B	15.48B	13.86B	11.73B	11.57B	15.68B
Cash Flow
Free Cash Flow	2.65B	-1.93B	1.19B	4.37B	657.60M	1.63B
Operating Cash Flow	4.38B	-241.97M	2.28B	4.75B	1.03B	1.98B
Investing Cash Flow	-2.12B	-1.07B	-1.71B	-660.43M	974.76M	-1.18B
Financing Cash Flow	-526.36M	-803.43M	521.88M	-464.07M	-657.77M	1.37B

Harbin Electric Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1133, the sentiment is Positive. The current price of 17.79 is above the 20-day moving average (MA) of 16.79, above the 50-day MA of 15.21, and above the 200-day MA of 9.24, indicating a bullish trend. The MACD of 0.94 indicates Negative momentum. The RSI at 63.18 is Neutral, neither overbought nor oversold. The STOCH value of 80.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1133.

Harbin Electric Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1882	75 Outperform	HK$37.51B	10.75	15.98%	3.32%	16.15%	17.32%
1133	74 Outperform	HK$41.30B	16.64	15.06%	1.44%	34.78%	98.79%
2338	74 Outperform	$183.99B	14.45	12.91%	3.98%	3.55%	8.89%
1072	73 Outperform	$96.69B	23.31	7.71%	1.69%	20.99%	-5.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2727	58 Neutral	HK$145.55B	59.81	1.93%	―	7.59%	376.62%
2208	53 Neutral	HK$148.84B	32.64	6.78%	1.14%	25.84%	26.05%

Harbin Electric Co. Ltd. Class H Corporate Events

Harbin Electric Renews Connected Transactions Framework with Controlling Shareholder HE

Harbin Electric has renewed its New Products and Services Framework Agreement with its controlling shareholder, Harbin Electric Corporation (HE), covering cross-provision of products and services between the listed group and HE’s unlisted subsidiaries. Effective after the expiry of the existing framework on 31 December 2025, the renewed agreement maintains roughly the same terms, setting annual caps of RMB100 million for product sales to the unlisted HE group, RMB500 million for product purchases from it, RMB10 million for services provided by the listed group, and RMB230 million for services received, all to be conducted at fair market prices and on normal commercial terms. As HE holds about 69.79% of Harbin Electric’s share capital, these arrangements constitute continuing connected transactions under Hong Kong Listing Rules, requiring reporting, announcement and annual review but exempting the company from issuing a circular and seeking independent shareholders’ approval, thereby providing regulatory clarity while preserving operational and supply-chain continuity with its controlling shareholder group.

The most recent analyst rating on (HK:1133) stock is a Buy with a HK$18.00 price target. To see the full list of analyst forecasts on Harbin Electric Co. Ltd. Class H stock, see the HK:1133 Stock Forecast page.

Harbin Electric Renews Financial Services Framework with Controlling Shareholder

Harbin Electric has renewed its financial services framework agreement with controlling shareholder Harbin Electric Corporation (HE), under which Harbin Electric’s finance subsidiary will continue to provide depository, loan and other financial services to HE’s unlisted group companies on substantially unchanged, market-based terms. The renewed arrangement, effective after the original agreement expires in December 2025, sets no cap on the maximum daily deposit balance from the unlisted HE Group, maintains a RMB500 million cap on the maximum daily loan balance and a RMB10 million annual cap for fees and commissions on other financial services; the structure keeps most services exempt from shareholder approval under Hong Kong Listing Rules, with only the loan component subject to ongoing reporting, announcement and annual review requirements, thereby formalising intra-group financing while limiting additional compliance burdens for minority shareholders.

The most recent analyst rating on (HK:1133) stock is a Buy with a HK$18.00 price target. To see the full list of analyst forecasts on Harbin Electric Co. Ltd. Class H stock, see the HK:1133 Stock Forecast page.

Harbin Electric Announces Board Changes with New Appointment

Harbin Electric Co. Ltd. Class H has announced changes in its board of directors. Mr. Pan Qi-long has resigned from his position as an independent non-executive director and committee member due to a change in work arrangement, while Mr. Li Xie-hua has been appointed to fill these roles. Mr. Li brings extensive experience in engineering and management from his previous roles in various companies, which may enhance the company’s strategic direction and governance.

The most recent analyst rating on (HK:1133) stock is a Buy with a HK$25.50 price target. To see the full list of analyst forecasts on Harbin Electric Co. Ltd. Class H stock, see the HK:1133 Stock Forecast page.

Harbin Electric Appoints New Senior Vice-President

Harbin Electric Co. Ltd. has appointed Mr. Chen Hui as a senior vice-president, effective immediately. Mr. Chen brings extensive experience in the power generation industry, having held various leadership roles in major hydropower projects and companies, which is expected to strengthen Harbin Electric’s strategic positioning in the energy sector.

The most recent analyst rating on (HK:1133) stock is a Buy with a HK$14.00 price target. To see the full list of analyst forecasts on Harbin Electric Co. Ltd. Class H stock, see the HK:1133 Stock Forecast page.