VPower Group International Holdings Limited (1608) AI Stock Analysis

• Market Cap: HK$1.22B
• Dividend Yield: N/A
• Average Volume (3M): 222.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.17
• Revenue Growth: >-0.01%
• EPS Growth: 98.32%
• Country: HK
• Employees: 380
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): <0.01
• Shares Outstanding: 6,683,150,400
• 10 Day Avg. Volume: 172,772
• 30 Day Avg. Volume: 222,057
• PEG Ratio: 0.05
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 5.02
• 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: 38 Underperform
• Price Target: HK$0.15 ▼(-18.33% Downside)

VPower Group's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, high leverage, and negative cash flow trends. Technical analysis further highlights bearish momentum, with the stock trading below key moving averages and indicators suggesting oversold conditions. The negative P/E ratio underscores valuation concerns, with no dividend yield to attract investors. These factors collectively result in a low overall stock score.

Positive Factors

Strategic Partnerships

Partnerships expand VPower's market reach and capabilities, potentially increasing revenue streams and competitive positioning in the energy sector.

Renewable Energy Focus

Emphasizing renewable energy aligns with industry trends, offering growth opportunities and enhancing long-term sustainability.

Gross Profit Margin Improvement

Improving gross profit margin indicates potential operational efficiencies, which could lead to better profitability in the long term.

Negative Factors

Declining Revenue

A consistent decline in revenue suggests challenges in market demand or competitive positioning, impacting long-term growth potential.

High Leverage

High leverage can limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.

Negative Cash Flow

Negative cash flow highlights liquidity risks, which may hinder the company's ability to sustain operations and invest in future growth.

VPower Group International Holdings Limited Business Overview & Revenue Model

Company Description

VPower Group International Holdings Limited, an investment holding company, designs, integrates, sells, and installs gas-fired and diesel-fired gen-sets and power generation systems in Hong Kong, Macau, Mainland China, other Asian countries, Latin America, and internationally. The company operates in two segments, System Integration (SI); and Investment, Building and Operating (IBO). The SI segment designs, integrates, sells, and installs engine-based electricity generation units. The IBO segment designs, invests in, builds, and operates distributed power generation (DPG) stations to provide distributed power solutions. The company also engages in the sale and installation of power generation systems; trading of engines and components; and provision of consultancy and technical services. It serves customers in various sectors, including industry-grade and utility-grade DPG stations, governmental, residential and commercial buildings, data centers, hotels, construction works, mining operations, and railway and telecommunications projects. The company was founded in 2001 and is headquartered in Hung Hom, Hong Kong. VPower Group International Holdings Limited is a subsidiary of Energy Garden Limited.

How the Company Makes Money

VPower Group makes money through multiple revenue streams, primarily by generating income from the sale of electricity produced at its power plants. The company enters into power purchase agreements (PPAs) with utility companies and other customers, securing a steady revenue flow. Additionally, VPower Group earns revenue from its engineering and construction services related to power plant development, as well as from maintenance and operational services it provides to existing facilities. Strategic partnerships and collaborations with local and international energy firms enhance its capabilities and market reach, thereby contributing to its earnings. The company's focus on renewable energy sources and energy-efficient technologies also positions it to capitalize on emerging trends in the energy sector, further bolstering its revenue potential.

VPower Group International Holdings Limited Financial Statement Overview

Summary

VPower Group faces significant financial challenges with declining revenues and persistent losses. High leverage and negative cash flow trends pose risks to financial stability. While there are some areas of improvement, such as gross profit margin, the overall financial position is weak, warranting strategic reassessment.

Income Statement

The company's income statement shows a declining trend in revenue over recent years, with a significant drop in net income, indicating profitability challenges. The gross profit margin improved from 2023 to 2024 but remains low. Negative EBIT and EBITDA margins in 2023 signal operating inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage. The company's equity ratio is stable but low, suggesting limited financial resilience. Return on equity has been negative, reflecting ongoing profitability issues.

Cash Flow

Cash flow analysis shows inconsistency, with operating cash flow turning negative in 2021 and free cash flow declining significantly. The inability to generate positive free cash flow consistently highlights potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.52B	1.50B	3.36B	5.09B	3.39B
Gross Profit	269.84M	287.06M	-84.18M	556.47M	699.95M	735.00M
EBITDA	140.94M	223.03M	-1.58B	388.61M	637.02M	868.28M
Net Income	-73.80M	-233.08M	-2.85B	-316.85M	45.69M	516.29M
Balance Sheet
Total Assets	5.59B	5.86B	6.24B	8.91B	10.35B	9.13B
Cash, Cash Equivalents and Short-Term Investments	310.19M	122.81M	238.91M	165.18M	589.84M	1.08B
Total Debt	2.11B	2.50B	2.82B	3.02B	3.97B	3.25B
Total Liabilities	3.95B	4.28B	4.35B	5.77B	6.82B	5.65B
Stockholders Equity	1.64B	1.58B	1.88B	3.14B	3.48B	3.44B
Cash Flow
Free Cash Flow	1.84M	212.69M	128.70M	-48.67M	-1.30B	1.36B
Operating Cash Flow	-96.79M	249.46M	226.95M	121.39M	-980.84M	1.67B
Investing Cash Flow	632.27M	-2.89M	-29.30M	-224.90M	-193.91M	-558.33M
Financing Cash Flow	-642.54M	-241.40M	-179.12M	-424.04M	508.14M	-1.08B

VPower Group International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1608, the sentiment is Negative. The current price of 0.18 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.22, and below the 200-day MA of 0.26, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 40.83 is Neutral, neither overbought nor oversold. The STOCH value of 28.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1608.

VPower Group International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0842	76 Outperform	HK$2.58B	5.55	9.11%	6.25%	13.14%	-28.26%
1979	76 Outperform	HK$2.13B	5.08	22.34%	5.87%	18.32%	14.06%
3393	69 Neutral	HK$16.09B	18.38	15.02%	2.24%	20.33%	27.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8328	51 Neutral	HK$494.89M	-2.42	-18.92%	―	-28.40%	-350.00%
2188	40 Underperform	HK$279.01M	-5.76	-8.16%	―	-0.84%	42.31%
1608	38 Underperform	HK$1.22B	-16.67	-4.59%	―	>-0.01%	98.32%

VPower Group International Holdings Limited Corporate Events

VPower Group Faces Winding-Up Petitions Amid Financial Dispute

VPower Group International Holdings Limited has announced that winding-up petitions have been filed against the company and its subsidiary, VPower Group Holdings Limited, by CRRC Hongkong Capital Management Co., Limited. The petitions relate to an alleged non-payment of over US$31 million concerning finance lease agreements and a guarantee. The company is taking legal advice and opposes the petitions, with the first court hearing scheduled for February 2026. The announcement highlights the potential impact on share transfers and the company’s operations if a winding-up order is granted, although no such order has been issued yet.

VPower Group Announces Trading Halt Pending Inside Information Release

VPower Group International Holdings Limited has announced a trading halt on its shares on the Hong Kong Stock Exchange effective from December 1, 2025. This halt is due to the pending release of an announcement regarding certain inside information, which could have implications for the company’s operations and stakeholder interests.

VPower Group Announces Offshore Debt Restructuring Plan

VPower Group International Holdings Limited has announced a proposed restructuring of its offshore debts amounting to approximately HK$2,077 million. This restructuring, agreed upon with certain lending banks, aims to improve the company’s financial position by extending debt maturity dates, reducing interest rates, and waiving certain breaches under existing agreements. The restructuring is contingent upon meeting specific conditions, and if successful, it will reduce the offshore debts to around HK$1,380 million, impacting the company’s financial operations and obligations to its shareholders.