Shunfeng International Clean Energy (1165) AI Stock Analysis

• Market Cap: HK$121.98M
• Dividend Yield: N/A
• Average Volume (3M): 18.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.42
• Revenue Growth: -21.67%
• EPS Growth: -18.64%
• Country: HK
• Employees: 72
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): -0.04
• Shares Outstanding: 5,082,375,500
• 10 Day Avg. Volume: 5,720,800
• 30 Day Avg. Volume: 18,930,600
• PEG Ratio: 0.09
• Price to Book (P/B): -0.06
• Price to Sales (P/S): 0.78
• P/FCF Ratio: -8.69
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: HK$0.02 ▲(15.00% Upside)

The overall stock score is primarily driven by the company's poor financial performance, characterized by declining revenues, persistent losses, and negative equity. Technical analysis provides some short-term bullish signals, but these are overshadowed by the company's weak valuation and financial instability. Significant improvements in financial health are necessary to enhance the stock's attractiveness.

Positive Factors

Renewable Energy Focus

The company's focus on renewable energy aligns with global sustainability trends, positioning it well for long-term growth in the clean energy sector.

Strategic Partnerships

Partnerships and government contracts provide stable revenue opportunities and enhance market positioning, supporting long-term business stability.

Diverse Revenue Streams

Diverse revenue sources reduce dependency on a single market segment, enhancing resilience against industry volatility and supporting sustainable growth.

Negative Factors

Declining Revenues

Consistent revenue decline indicates challenges in market competitiveness or demand, impacting long-term financial health and growth prospects.

Negative Equity

Negative equity reflects financial instability and solvency risks, potentially limiting future investment and growth opportunities.

Inconsistent Cash Flow

Inconsistent cash flow generation raises concerns about the company's ability to sustain operations and meet financial obligations, affecting long-term viability.

Shunfeng International Clean Energy Business Overview & Revenue Model

Company Description

Shunfeng International Clean Energy (1165) is a leading provider in the renewable energy sector, focused on the production and development of solar energy solutions. The company operates across various segments, including the manufacturing of photovoltaic (PV) products, solar power generation, and the provision of energy storage systems. By leveraging advanced technology and sustainable practices, Shunfeng aims to contribute to global clean energy initiatives.

How the Company Makes Money

Shunfeng International Clean Energy generates revenue primarily through the sale of its solar PV products, which include solar panels and inverters. In addition, the company earns income from solar power generation projects, where it either sells generated electricity directly to the grid or enters into power purchase agreements (PPAs) with various utilities and large consumers. Additionally, Shunfeng engages in energy storage solutions, providing products and services that enhance the efficiency and reliability of solar energy systems. Strategic partnerships with other energy firms and government contracts often bolster revenue streams, particularly in regions with strong renewable energy mandates.

Shunfeng International Clean Energy Financial Statement Overview

Summary

The company's financial performance is extremely weak, with declining revenues, persistent net losses, and negative equity. High debt levels and inconsistent cash flow generation further exacerbate financial instability, posing significant solvency risks.

Income Statement

The company's income statement reveals weak financial performance with declining revenue and persistent net losses. Revenue decreased from 2020 to 2024, with a notable drop in 2024. Gross profit margin has reduced over the years, and the net profit margin is negative, indicating unprofitability. Despite a positive EBITDA margin, the EBIT margin is negative, suggesting high non-cash expenses or impairments.

Balance Sheet

The balance sheet of the company shows a precarious financial position with negative stockholders' equity, indicating liabilities exceed assets. The debt-to-equity ratio is extremely high due to negative equity, highlighting significant financial risk. The equity ratio is also negative, which is concerning for solvency. The company is highly leveraged, posing risks to financial stability.

Cash Flow

The cash flow statement highlights severe issues with cash flow generation. Operating cash flows have been inconsistent, with 2024 showing zero operating cash flow. Free cash flow has also been volatile, with significant declines and fluctuations over the years. The lack of positive and stable cash flow generation raises concerns about the company's ability to manage operations and debt obligations effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	144.40M	159.79M	238.48M	313.14M	650.19M	904.42M
Gross Profit	30.61M	41.08M	118.19M	144.42M	296.76M	447.90M
EBITDA	46.61M	53.80M	143.94M	201.47M	501.42M	723.67M
Net Income	-428.45M	-435.48M	-449.46M	-173.90M	-745.21M	-552.28M
Balance Sheet
Total Assets	3.03B	3.05B	3.25B	5.06B	6.75B	9.71B
Cash, Cash Equivalents and Short-Term Investments	3.41M	13.08M	97.45M	532.62M	55.68M	237.08M
Total Debt	2.43B	3.88B	3.22B	5.03B	5.93B	8.27B
Total Liabilities	5.15B	4.96B	4.72B	6.06B	7.63B	9.63B
Stockholders Equity	-2.18B	-1.97B	-1.54B	-1.09B	-974.32M	-1.47B
Cash Flow
Free Cash Flow	2.25M	-14.28M	14.40M	176.28M	221.40M	-97.06M
Operating Cash Flow	6.39M	-4.49M	43.83M	190.08M	286.79M	-23.60M
Investing Cash Flow	4.96M	21.78M	169.24M	1.56B	190.16M	2.06B
Financing Cash Flow	-32.86M	-101.66M	-648.26M	-1.27B	-647.96M	-1.90B

Shunfeng International Clean Energy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.02
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1165, the sentiment is Positive. The current price of 0.02 is below the 20-day moving average (MA) of 0.02, below the 50-day MA of 0.02, and below the 200-day MA of 0.02, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.88 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1165.

Shunfeng International Clean Energy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8326	72 Outperform	HK$197.55M	2.36	23.45%	―	34.44%	83.60%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0987	62 Neutral	HK$333.32M	8.93	2.00%	3.73%	15.92%	―
0527	48 Neutral	HK$1.10B	-7.61	―	―	5.48%	-11.10%
1165	42 Neutral	HK$121.98M	―	―	―	-21.67%	-18.64%
0295	40 Underperform	€254.40M	―	―	―	―	―
0451	40 Underperform	$1.18B	-1.71	-35.49%	―	39.42%	56.89%

Shunfeng International Clean Energy Corporate Events

Shunfeng International Clean Energy Advances Debt Restructuring Efforts

Shunfeng International Clean Energy Limited has announced updates on its action plans to resolve a disclaimer of opinion issued by its auditor concerning the company’s financial statements for 2024. The company is actively engaged in negotiations with major creditors and potential investors to implement a debt restructuring plan. Several creditors have expressed support for the restructuring efforts, and potential investors have shown interest, with some having completed due diligence and proposed preliminary restructuring terms. The company aims to finalize the restructuring agreement by the end of December 2025, with ongoing discussions and support from key stakeholders.

Leadership Transition at Shunfeng International Clean Energy

Shunfeng International Clean Energy Limited announced a significant change in its leadership, with Mr. Wang Yu resigning from his roles as Executive Director, Chairman of the Board, and CEO, effective September 26, 2025, to focus on personal business commitments. Mr. Han Jibiao has been appointed to succeed him, bringing over 16 years of management experience to the company. This leadership transition is expected to impact the company’s strategic direction and operational focus, potentially influencing its market positioning and stakeholder relations.

Shunfeng International Clean Energy Announces Board Composition and Roles

Shunfeng International Clean Energy Limited has announced the composition of its board of directors and the roles within its board committees. This organizational update includes the appointment of Mr. Han Jibiao as Chairman and CEO, and highlights the structure of the Audit, Remuneration, and Nomination Committees. Such updates are crucial for stakeholders as they reflect the company’s governance and strategic direction, potentially impacting its operational effectiveness and industry positioning.

Shunfeng International Clean Energy Pursues Debt Restructuring Amid Creditor Support

Shunfeng International Clean Energy Limited has announced ongoing negotiations with key creditors and potential investors to address its overdue debts through a comprehensive debt restructuring plan. The company has received verbal and written support from major creditors for a scheme of arrangement and has engaged Fortune Ark Restructuring Limited as a financial advisor to draft and evaluate the restructuring terms. Despite rejecting a previous proposal, the company continues to seek consensus on restructuring terms, aiming to secure the necessary support from its creditors.

Shunfeng International Clean Energy to Review Interim Financial Results

Shunfeng International Clean Energy Limited has announced that its Board of Directors will meet on August 29, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation of an interim dividend, which could have implications for shareholders and the company’s financial strategies.