China Everbright Greentech Ltd. (1257) AI Stock Analysis

• Market Cap: HK$1.86B
• Dividend Yield: 3.04%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.97
• Revenue Growth: -3.25%
• EPS Growth: 12.59%
• Country: HK
• Employees: 3,400
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.09
• Shares Outstanding: 2,066,078,000
• 10 Day Avg. Volume: 587,400
• 30 Day Avg. Volume: 1,205,087
• PEG Ratio: -0.15
• Price to Book (P/B): 0.18
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 2.32
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: HK$1.00 ▲(11.11% Upside)

The overall stock score reflects significant financial challenges, with declining revenue and profitability, and increasing leverage. Technical indicators suggest a bearish trend, and valuation is hampered by negative earnings, though the dividend yield offers some support. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Strategic Partnerships

Strategic partnerships and governmental support provide a stable revenue stream and enhance the company's ability to expand its operations in renewable energy and waste management, contributing to long-term growth and sustainability.

Asset Base

A substantial asset base offers financial support and potential collateral for future investments, which can help the company navigate financial challenges and pursue growth opportunities in the renewable sector.

Industry Position

As a leading player in China's environmental protection industry, the company benefits from strong market positioning, which can drive competitive advantages and long-term growth in the renewable energy sector.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, which could impact the company's ability to sustain growth and profitability in the long term.

High Leverage

High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities and manage economic downturns effectively.

Negative Cash Flow

Consistent negative free cash flow raises concerns about operational efficiency and liquidity, which could hinder the company's ability to fund operations and invest in future growth initiatives.

China Everbright Greentech Ltd. Business Overview & Revenue Model

Company Description

China Everbright Greentech Limited, an investment holding company, engages in the design, construction, operation, and maintenance of integrated biomass and waste-to-energy projects in China. It is involved in the construction and operation of biomass direct combustion power generation projects, biomass heat supply projects, biomass electricity and heat cogeneration projects, and integrated biomass and waste-to-energy projects; and hazardous waste landfill projects, hazardous waste incineration projects, and physicochemical and resources recycling projects. The company also engages in the environmental remediation for restoration of industrial contaminated sites, contaminated farmland, and mines and landfills; treatment of industrial gas emission, oil sludge, river/lake sediments, and industrial sludge; and construction and operation of wetland parks, environmental stewardship services, and anti-seepage at landfill sites. It operates 16 solar energy projects and 2 wind power projects with a generation capacity of 127.66 megawatts for local power grid companies in Jiangsu Province, Anhui Province, Shanxi Province, Hong Kong, and Germany. The company was founded in 2006 and is headquartered in Admiralty, Hong Kong. China Everbright Greentech Limited is a subsidiary of China Everbright Green Holdings Limited.

How the Company Makes Money

China Everbright Greentech generates revenue primarily through the operation of its waste-to-energy plants, which convert municipal solid waste into electricity and heat. The company typically earns money through the sale of electricity generated from its facilities to local grids, as well as through service fees charged for waste processing. Additionally, the company may receive government subsidies or incentives aimed at promoting renewable energy and environmental protection initiatives. Strategic partnerships with local governments and other stakeholders also enhance its revenue potential by securing long-term waste supply agreements and facilitating project financing.

China Everbright Greentech Ltd. Financial Statement Overview

Summary

China Everbright Greentech Ltd. faces significant financial challenges, with declining revenue, shrinking profitability, and increasing leverage. The company struggles to generate positive free cash flow, impacting liquidity and operational capabilities. Despite a strong asset base, high debt levels pose risks to long-term sustainability.

Income Statement

The company has shown declining revenue over the past few years, with a notable drop from 2020 to 2024, and has been experiencing negative net income in recent years. Gross profit margin decreased, indicating shrinking profitability, while EBIT and EBITDA margins have also deteriorated. The declining revenue growth and net profit margin highlight challenges in maintaining financial performance.

Balance Sheet

The company's debt-to-equity ratio has increased over the years, indicating higher leverage. The equity ratio has been declining, suggesting reduced financial stability. However, the company maintains a substantial asset base, which provides some support. Overall, the balance sheet reflects moderate financial risk due to increasing debt levels.

Cash Flow

The cash flow situation appears challenging, with consistent negative free cash flow over recent years. Operating cash flow has been volatile, with periods of negative cash flow, highlighting cash management issues. The inability to generate positive free cash flow raises concerns about the company's operational efficiency and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.87B	6.98B	7.59B	8.05B	8.45B	9.84B
Gross Profit	1.64B	1.46B	1.72B	1.68B	2.35B	3.01B
EBITDA	2.35B	998.59M	1.45B	2.18B	2.74B	3.08B
Net Income	-368.52M	-415.38M	-301.71M	356.15M	1.11B	1.50B
Balance Sheet
Total Assets	37.74B	36.33B	39.76B	39.16B	40.54B	35.26B
Cash, Cash Equivalents and Short-Term Investments	2.58B	1.66B	2.33B	1.93B	2.48B	2.51B
Total Debt	21.94B	21.03B	23.17B	20.76B	20.58B	16.94B
Total Liabilities	25.30B	24.67B	27.40B	25.62B	26.39B	22.40B
Stockholders Equity	12.32B	11.51B	12.08B	13.19B	13.76B	12.52B
Cash Flow
Free Cash Flow	787.48M	873.17M	-1.49B	-1.97B	-2.39B	-4.05B
Operating Cash Flow	1.27B	1.47B	-125.60M	-419.78M	426.69M	-887.85M
Investing Cash Flow	-752.08M	-563.69M	-1.38B	-1.59B	-2.80B	-3.26B
Financing Cash Flow	663.33M	-1.55B	1.97B	1.62B	2.27B	3.81B

China Everbright Greentech Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1257, the sentiment is Negative. The current price of 0.9 is below the 20-day moving average (MA) of 0.92, below the 50-day MA of 0.94, and above the 200-day MA of 0.85, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.57 is Neutral, neither overbought nor oversold. The STOCH value of 17.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1257.

China Everbright Greentech Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0579	75 Outperform	€18.88B	5.58	9.87%	6.82%	2.90%	1.23%
3868	74 Outperform	HK$9.63B	10.72	―	4.96%	3.06%	6.04%
1713	72 Outperform	HK$2.65B	6.02	12.10%	6.20%	9.12%	16.90%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0182	65 Neutral	HK$2.44B	3.94	6.80%	11.29%	-16.17%	-31.65%
1798	60 Neutral	HK$15.64B	7.74	9.90%	6.14%	2.47%	-6.46%
1257	44 Neutral	HK$1.86B	-5.16	-3.42%	3.04%	-3.25%	12.59%

China Everbright Greentech Ltd. Corporate Events

China Everbright Greentech Completes Issuance of Green Medium-Term Notes

China Everbright Greentech Limited has successfully completed the issuance of its 2025 second tranche green perpetual medium-term notes in the PRC, amounting to RMB1.0 billion. This issuance, part of a broader debt financing initiative approved by the National Association of Financial Market Institutional Investors, underscores the company’s commitment to sustainable finance and strengthens its financial position to support ongoing and future green projects.

China Everbright Greentech Engages in Waste Disposal Agreement with Baoying Energy

China Everbright Greentech Ltd. has entered into a connected transaction with Baoying Energy for the disposal of excessive household waste generated from a landfill site closure project. The agreement involves the incineration of 48,000 tonnes of waste over two years, with a processing fee of RMB126.29 per tonne. This transaction, involving a subsidiary of the company’s controlling shareholder, is subject to certain reporting and review requirements under the Listing Rules, highlighting the company’s ongoing commitment to environmental management and regulatory compliance.