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

• Market Cap: HK$577.50M
• Dividend Yield: N/A
• Average Volume (3M): 3.67K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.87
• 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: 300
• 30 Day Avg. Volume: 3,666
• 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: HK$3.00
• Price Target Upside: 29.87% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$3.00 ▲(29.87% Upside)

The most significant factor affecting the stock score is the company's poor financial performance, characterized by declining revenues and profitability, and negative cash flow. Technical analysis provides mixed signals with some potential for reversal, but the overall trend remains bearish. Valuation metrics are unattractive due to the negative P/E ratio and lack of dividend yield.

China Nature Energy Technology Holdings Limited Business Overview & Revenue Model

Company Description

China Nature Energy Technology Holdings Limited, an investment holding company, engages in the research and development, integration, manufacturing, and sales of pitch control systems and related components in the People's Republic of China. The company operates through Sales of Pitch Control Systems and Related Components; Sales of Wind Power; Wind Farm Operation and Maintenance Business; and Provision of Energy Storage Management Solutions segments. It offers high-voltage pitch control systems for wind turbines. The company also generates and sells wind power through 13 wind turbines with total installed capacity of 19.5 MW. In addition, it provides wind farm operation and maintenance, upgrade, and modification services, as well as wind energy related consultancy services; sells wind farm consumables; and energy storage management services, as well as sells related products. The company was founded in 2011 and is headquartered in Jiangyin, the People's Republic of China. China Nature Energy Technology Holdings Limited operates as a subsidiary of Hongyuan Company Limited.

How the Company Makes Money

China Nature Energy Technology Holdings Limited generates revenue through the sale of its photovoltaic products, which include solar panels and related components. The company may also engage in the provision of services such as installation, maintenance, and consulting for solar energy systems. Revenue streams are further supported by strategic partnerships with other companies and organizations within the renewable energy industry, enhancing its market reach and technological capabilities. Additionally, government incentives and policies promoting clean energy adoption can positively impact the company's financial performance.

China Nature Energy Technology Holdings Limited Financial Statement Overview

Summary

The company is facing significant financial challenges with declining revenues and profitability. The income statement shows negative margins, and the balance sheet indicates potential leverage risks. Cash flow management issues further exacerbate the financial instability.

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: Negative
• Last Price: 2.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1597, the sentiment is Negative. The current price of 2.31 is below the 20-day moving average (MA) of 2.42, below the 50-day MA of 2.60, and below the 200-day MA of 3.31, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 30.39 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1133	78 Outperform	HK$26.34B	11.02	10.89%	2.09%	34.78%	98.79%
2208	74 Outperform	HK$67.30B	29.29	―	1.09%	25.84%	26.05%
0558	65 Neutral	HK$6.62B	18.90	17.59%	1.55%	-0.21%	-27.21%
0658	51 Neutral	HK$2.81B	-0.42	-78.06%	―	-4.88%	-860.80%
1597	45 Neutral	HK$577.50M	―	-18.61%	―	-30.04%	-116.46%
9663	45 Neutral	HK$2.22B	-7.97	-13.70%	―	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

China Nature Energy Technology Holdings Limited Corporate Events

China Nature Energy Issues Profit Warning Amid Market Challenges

China Nature Energy Technology Holdings Limited has issued a profit warning, anticipating a net loss of up to RMB25 million for the first half of 2025, compared to a RMB15.07 million loss in the same period of 2024. The increased loss is attributed to challenges in the energy storage sector due to power market reforms and policy changes, as well as heightened market competition affecting the profitability of its pitch control systems.

China Nature Energy Revises Nomination Committee Terms

China Nature Energy Technology Holdings Limited has revised the terms of reference for its Nomination Committee, which is responsible for reviewing the Board’s composition and recommending procedures for director appointments. The committee must have at least three members, including a majority of independent non-executive directors, and meet at least once a year to ensure compliance with Hong Kong Stock Exchange regulations.

China Nature Energy Technology Passes All AGM Resolutions

China Nature Energy Technology Holdings Limited announced that all proposed resolutions were successfully passed at their annual general meeting held on June 27, 2025. The resolutions included the re-election of directors, re-appointment of KPMG as auditors, and granting mandates to the board for share issuance and repurchase, reflecting strong shareholder support and potentially enhancing the company’s strategic flexibility.