China Nature Energy Technology Holdings Limited (1597) AI Stock Analysis

• Market Cap: HK$687.50M
• Dividend Yield: N/A
• Average Volume (3M): 2.97K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.77
• Revenue Growth: -30.04%
• EPS Growth: -116.46%
• Country: HK
• Employees: 160
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.09
• Shares Outstanding: 250,000,000
• 10 Day Avg. Volume: 3,300
• 30 Day Avg. Volume: 2,966
• PEG Ratio: -0.14
• Price to Book (P/B): 5.36
• Price to Sales (P/S): 8.08
• P/FCF Ratio: -62.90
• 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: 46 Neutral
• Price Target: HK$2.50 ▼(-9.09% Downside)

The overall stock score is primarily impacted by the company's weak financial performance and poor valuation metrics. While there is some short-term bullish momentum in the technical analysis, the financial challenges and negative valuation indicators are significant concerns that weigh heavily on the stock's attractiveness.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance market reach and technological capabilities, providing a competitive edge and potential for revenue growth.

Government Incentives

Government incentives for clean energy can drive demand for the company's products, supporting long-term revenue growth and market expansion.

Market Position in Renewable Energy

Operating in the growing renewable energy sector positions the company to benefit from increasing global demand for sustainable energy solutions.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term financial stability.

Negative Profit Margins

Negative profit margins suggest inefficiencies and inability to cover costs, raising concerns about operational sustainability and profitability.

Cash Flow Challenges

Negative cash flow growth indicates difficulties in generating cash from operations, which can constrain investment and growth opportunities.

China Nature Energy Technology Holdings Limited Business Overview & Revenue Model

Company Description

China Nature Energy Technology Holdings Limited (1597) is a leading player in the renewable energy sector, primarily focusing on the development and operation of clean energy projects. The company operates in various segments, including solar energy, biomass energy, and waste management, providing sustainable solutions that address environmental challenges while promoting energy efficiency. Its core products include solar panels, biomass power generation systems, and waste-to-energy technologies, aimed at supporting China's transition to greener energy sources.

How the Company Makes Money

The company generates revenue through multiple streams, including the sale of renewable energy products such as solar panels and biomass energy systems, as well as through the operation of energy generation plants. Key revenue streams include power generation from solar and biomass projects, where the company sells electricity to the grid or directly to industrial clients. Additionally, China Nature Energy Technology Holdings Limited may enter into long-term power purchase agreements (PPAs) that provide stable cash flow over time. Strategic partnerships with government entities and private sector companies for project development and financing also contribute significantly to its earnings, enabling the company to expand its operational capacity and market reach.

China Nature Energy Technology Holdings Limited Financial Statement Overview

Summary

The company is experiencing significant financial challenges, with declining revenues and profitability. The balance sheet shows potential leverage risks, and the cash flow statement highlights difficulties in generating and managing cash. Immediate strategic actions are needed to address these financial weaknesses.

Income Statement

The company has experienced a significant decline in revenue from 2023 to 2024, with a negative revenue growth rate. Gross profit margin and net profit margin are negative, indicating that the company is not generating enough revenue to cover its costs. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Overall, the income statement shows a concerning trend of declining profitability.

Balance Sheet

The balance sheet shows a stable equity ratio, indicating a reasonable level of financial stability. However, the debt-to-equity ratio is relatively high, suggesting potential leverage risks. Return on equity is negative due to net losses, which is a concern for investors. The company's assets have decreased over the years, which might affect future growth potential.

Cash Flow

The cash flow statement reveals a negative free cash flow growth rate, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting revenue into cash. The free cash flow to net income ratio is also negative, highlighting cash flow management issues. Overall, the cash flow situation is weak and requires improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	146.54M	148.28M	284.07M	219.95M	312.86M	338.89M
Gross Profit	-12.77M	-8.97M	26.95M	27.55M	45.87M	73.57M
EBITDA	-23.40M	-18.84M	3.48M	22.31M	38.43M	60.37M
Net Income	-41.41M	-34.73M	-10.14M	5.37M	21.07M	40.17M
Balance Sheet
Total Assets	362.28M	398.34M	518.34M	441.73M	504.41M	547.43M
Cash, Cash Equivalents and Short-Term Investments	15.95M	51.01M	55.82M	43.91M	40.57M	121.42M
Total Debt	53.79M	77.23M	83.48M	45.38M	57.87M	99.79M
Total Liabilities	163.53M	176.13M	256.79M	173.72M	244.85M	306.32M
Stockholders Equity	198.75M	223.24M	257.89M	268.00M	259.56M	239.17M
Cash Flow
Free Cash Flow	21.67M	-19.04M	-16.73M	17.74M	-2.22M	10.68M
Operating Cash Flow	25.17M	-12.45M	9.65M	24.24M	7.31M	12.13M
Investing Cash Flow	18.27M	15.32M	-26.19M	-6.14M	-38.08M	-1.59M
Financing Cash Flow	-29.31M	-8.03M	28.24M	-15.86M	-48.46M	78.32M

China Nature Energy Technology Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1597, the sentiment is Positive. The current price of 2.75 is above the 20-day moving average (MA) of 2.73, above the 50-day MA of 2.61, and below the 200-day MA of 2.94, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 65.55 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1597.

China Nature Energy Technology Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2208	74 Outperform	HK$73.20B	27.85	6.78%	1.14%	25.84%	26.05%
1133	74 Outperform	HK$34.71B	14.52	15.06%	1.59%	34.78%	98.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0558	60 Neutral	HK$4.56B	13.28	17.97%	2.19%	14.32%	-19.44%
1597	46 Neutral	HK$687.50M	-15.38	-18.61%	―	-30.04%	-116.46%
0658	45 Neutral	HK$2.55B	-0.39	-69.18%	―	-4.88%	-860.80%
9663	40 Neutral	HK$1.81B	-5.83	-12.63%	―	―	―

China Nature Energy Technology Holdings Limited Corporate Events

China Nature Energy Technology Holdings Limited Announces Auditor Change

China Nature Energy Technology Holdings Limited has announced a change in its auditor, transitioning from KPMG to Baker Tilly Hong Kong Limited. This change, effective from October 20, 2025, was prompted by a disagreement over audit fees and aims to enhance corporate governance and auditor independence. The company assures stakeholders that the transition will not impact the annual audit for the financial year ending December 31, 2025, and expresses confidence in Baker Tilly’s capabilities and reputation.