Xinchen China Power Holdings Ltd. (1148) AI Stock Analysis

• Market Cap: HK$397.49M
• Dividend Yield: 3.03%
• Average Volume (3M): 5.56M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.83
• Revenue Growth: 9.51%
• EPS Growth: -21.71%
• Country: HK
• Employees: 1,002
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.01
• Shares Outstanding: 1,282,211,800
• 10 Day Avg. Volume: 4,819,273
• 30 Day Avg. Volume: 5,563,591
• PEG Ratio: -0.86
• Price to Book (P/B): 0.13
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.94
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$0.35 ▲(16.33% Upside)

The stock's overall score is driven by a reasonable valuation and positive technical indicators. However, financial performance concerns, particularly in operational efficiency and cash flow stability, weigh on the score.

Positive Factors

Revenue Growth

Consistent revenue growth suggests the company is expanding its market reach and product adoption, which is crucial for long-term sustainability.

Steady Income Stream

PPAs provide a steady income stream, reducing revenue volatility and ensuring financial stability over the long term.

Government Incentives

Government incentives for renewable energy support the company's strategic goals, enhancing competitive positioning and long-term growth potential.

Negative Factors

High Leverage

High leverage can strain financial resources, limiting flexibility and increasing risk during economic downturns, impacting long-term viability.

Operational Efficiency Challenges

Weak operational efficiency can hinder profitability and growth, requiring strategic improvements to sustain long-term competitiveness.

Cash Flow Stability

Inconsistent cash flow can affect the company's ability to invest in growth opportunities and meet financial obligations, impacting long-term stability.

Xinchen China Power Holdings Ltd. Business Overview & Revenue Model

Company Description

Xinchen China Power Holdings Limited, through its subsidiaries, develops, manufactures, and sells automotive engines for passenger and light duty commercial vehicles in the People's Republic of China. It operates in three segments: Gasoline Engines, Diesel Engines, and Engine Components. The company also manufactures engine parts and components of passenger vehicles, as well as engages in factory premises leasing activities. Xinchen China Power Holdings Limited was founded in 1998 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Xinchen China Power Holdings Ltd. generates revenue primarily through the sale of electricity produced from its power plants. The company operates on a revenue model that includes long-term power purchase agreements (PPAs) with state-owned utility companies, ensuring a steady income stream from its energy output. Additionally, Xinchen may benefit from government incentives and subsidies aimed at promoting renewable energy initiatives. Key revenue streams also include sales from ancillary services related to energy management and efficiency solutions. Strategic partnerships with local governments and other energy firms further enhance its operational capabilities and market reach, contributing to its overall earnings.

Xinchen China Power Holdings Ltd. Financial Statement Overview

Summary

Xinchen China Power Holdings Ltd. has shown mixed financial performance. Revenue growth is positive, but operational efficiency and cash flow stability are challenges. High leverage and inconsistent margins pose risks.

Income Statement

Xinchen China Power Holdings Ltd. shows a mixed performance in its income statement. The gross profit margin has been relatively low, with a slight improvement in recent years. Net profit margins have been volatile, reflecting inconsistent profitability. Revenue growth has been positive, indicating potential in revenue expansion, but EBIT and EBITDA margins are weak, showing challenges in operational efficiency.

Balance Sheet

The company's balance sheet presents a moderate level of stability. The debt-to-equity ratio remains high, indicating potential leverage risk. However, there is a consistent stockholders' equity base. The equity ratio is average, suggesting a balanced asset structure but with room for improvement in reducing liabilities.

Cash Flow

The cash flow analysis for Xinchen China Power Holdings Ltd. indicates significant room for improvement. The company has experienced periods of negative free cash flow, although there was a positive trend in operating cash flow in recent years. The free cash flow to net income ratio has been inconsistent, indicating challenges in translating profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.27B	6.08B	5.34B	1.65B	1.46B	1.71B
Gross Profit	206.08M	183.56M	175.87M	102.39M	76.44M	122.93M
EBITDA	77.65M	71.53M	371.10M	135.40M	-2.43M	-58.63M
Net Income	32.54M	38.17M	41.07M	-115.83M	-392.77M	-808.64M
Balance Sheet
Total Assets	5.05B	5.48B	5.50B	4.16B	3.96B	5.01B
Cash, Cash Equivalents and Short-Term Investments	92.46M	85.57M	23.84M	59.06M	12.85M	55.28M
Total Debt	974.17M	1.00B	1.14B	1.37B	1.24B	1.39B
Total Liabilities	3.28B	3.72B	3.79B	2.48B	2.17B	2.82B
Stockholders Equity	1.77B	1.75B	1.72B	1.67B	1.79B	2.18B
Cash Flow
Free Cash Flow	221.80M	242.07M	184.82M	-239.31M	-116.78M	530.63M
Operating Cash Flow	255.29M	303.17M	217.31M	-176.25M	-27.00M	565.37M
Investing Cash Flow	9.37M	-54.86M	33.26M	413.97M	187.74M	-349.26M
Financing Cash Flow	-213.57M	-186.58M	-285.79M	-191.51M	-203.16M	-259.00M

Xinchen China Power Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.30
• 50DMA: Negative
• 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:1148, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.32, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.57 is Neutral, neither overbought nor oversold. The STOCH value of 47.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1148.

Xinchen China Power Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1809	78 Outperform	HK$4.95B	4.54	15.64%	8.39%	2.85%	-33.83%
1571	76 Outperform	HK$3.78B	7.25	13.59%	13.26%	-3.80%	-27.62%
2025	67 Neutral	HK$8.37B	345.39	2.26%	0.19%	32.92%	67.96%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1930	58 Neutral	HK$257.40M	13.62	4.80%	1.84%	3.40%	20.78%
1148	55 Neutral	HK$397.49M	11.13	1.91%	3.03%	9.51%	-21.71%
6162	41 Neutral	HK$432.00M	-1,030.00	-0.12%	―	23.71%	-112.50%

Xinchen China Power Holdings Ltd. Corporate Events

Xinchen China Power Delays Circular Dispatch for Equity Acquisition

Xinchen China Power Holdings Ltd. has announced a delay in the dispatch of a circular related to a major equity acquisition agreement. The circular, which includes detailed information about the transaction and related matters, is now expected to be released by the end of December 2025. This delay indicates the company’s need for additional time to finalize the necessary information, potentially impacting stakeholders’ expectations and the company’s strategic positioning in the market.

Xinchen China Power Forms Strategic Alliance in Aircraft Engine Market

Xinchen China Power Holdings Ltd. has entered into a strategic alliance with Sichuan Hongpeng Aviation Aerospace Equipment Intelligent Manufacturing Co., Ltd. to enhance its presence in the aircraft piston engine market. This partnership aims to integrate Xinchen’s automotive engine expertise with the strategic partner’s aircraft engine capabilities, facilitating a phased approach to developing both non-airworthy and airworthy aircraft piston engines. The alliance is expected to provide Xinchen with a fast-track entry into the high-barrier aircraft industry, aligning with national and local development strategies, and potentially securing stable order sources and government support.

Xinchen China Power Delays Circular Dispatch for Equity Acquisition

Xinchen China Power Holdings Ltd. announced a delay in the dispatch of a circular related to a major equity acquisition agreement. The circular, initially expected by 14 November 2025, will now be dispatched by 28 November 2025 due to additional time needed to finalize the information. This delay may impact stakeholders awaiting further details on the transaction.

Xinchen China Power Announces Major Equity Acquisition

Xinchen China Power Holdings Limited, a company incorporated in the Cayman Islands, has announced a significant transaction involving the acquisition of equity in Zhonghang Lantian Equipment Manufacturing Co., Ltd. The deal involves the purchase of sale interest for approximately RMB147.1 million and a capital increase of US$5 million, resulting in the Target Company becoming a subsidiary of Xinchen China Power Holdings Limited. This transaction is classified as a major transaction under the Hong Kong Stock Exchange Listing Rules, requiring shareholder approval and other regulatory procedures. Following the announcement, trading in the company’s shares, which was temporarily halted, has resumed.

Xinchen China Power Announces Trading Halt for Major Transaction Disclosure

Xinchen China Power Holdings Ltd. has announced a trading halt on its shares on the Hong Kong Stock Exchange, effective from October 16, 2025. This halt is due to the pending release of an announcement regarding a major transaction that includes inside information, which could significantly impact the company’s operations and market positioning.