Tianjin Tianbao Energy Co., Ltd. Class H (1671) AI Stock Analysis

• Market Cap: HK$105.55M
• Dividend Yield: 2.27%
• Average Volume (3M): 13.67K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.11
• Revenue Growth: -1.46%
• EPS Growth: 834.07%
• Country: HK
• Employees: 70
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.07
• Shares Outstanding: 159,920,910
• 10 Day Avg. Volume: 8,200
• 30 Day Avg. Volume: 13,666
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 1.65
• 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: 53 Neutral
• Price Target: HK$0.64 ▼(-3.18% Downside)

The overall stock score is primarily influenced by financial performance challenges, including high leverage and liquidity concerns, which weigh heavily on the score. Technical analysis indicates weak market momentum, further impacting the score negatively. However, the stock's valuation is relatively attractive, providing some positive offset.

Positive Factors

Renewable Energy Focus

Tianjin Tianbao Energy's investment in renewable energy aligns with global trends towards sustainability, providing long-term growth potential as demand for cleaner energy sources increases.

Strategic Partnerships

Collaborations with industry players and government bodies strengthen Tianbao Energy's market position and operational efficiency, supporting sustained business growth.

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective business strategies, contributing to long-term financial stability.

Negative Factors

High Leverage

Heavy reliance on debt increases financial risk, particularly in volatile interest rate environments, potentially impacting long-term financial health.

Negative Cash Flow

Negative cash flow indicates liquidity challenges, which can constrain the company's ability to invest in growth opportunities and meet financial obligations.

Low Profit Margins

Persistently low profit margins suggest limited pricing power and efficiency, which could hinder profitability and competitive positioning in the long term.

Tianjin Tianbao Energy Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Tianjin Tianbao Energy Co., Ltd. generates and supplies power in the People's Republic of China. The company operates through three segments: Electricity Dispatch and Sale, Power Generation and Supply, and Other. It generates and supplies steam, heating, and cooling to industrial and commercial customers; and purchases, dispatches, and sells electricity. The company also provides power facility construction, and industrial facilities operation and maintenance; and trades in electrical components, as well as engages in photovoltaic power generation and selling. It operates two back-pressure cogeneration units with a total installed capacity of 30 megawatts. Tianjin Tianbao Energy Co., Ltd. was formerly known as Tianjin Port Free Trade Zone Tianbao Power Company. The company was founded in 1992 and is headquartered in Tianjin, the People's Republic of China. Tianjin Tianbao Energy Co., Ltd. is a subsidiary of Tianjin Tianbao Holdings Limited.

How the Company Makes Money

Tianjin Tianbao Energy generates revenue through multiple streams, primarily by producing and selling electricity generated from both renewable and non-renewable sources. The company enters into long-term power purchase agreements (PPAs) with various industrial and commercial clients, ensuring a steady income flow. Additionally, Tianbao Energy benefits from government subsidies and incentives for renewable energy projects, which bolster its profitability. Strategic partnerships with other energy firms and local governments also enhance its operational capabilities and market reach, contributing significantly to its earnings.

Tianjin Tianbao Energy Co., Ltd. Class H Financial Statement Overview

Summary

Tianjin Tianbao Energy Co., Ltd. shows revenue growth and improved gross margins, indicating operational progress. However, low net margins, high leverage, and negative cash flow present significant challenges in profitability and liquidity.

Income Statement

The company has demonstrated consistent revenue growth over the years, with a revenue increase from 2023 to 2024 of 4.98%. Gross profit margins have improved, rising from 5.31% in 2023 to 7.18% in 2024, indicating better cost management. However, net profit margins remain low, improving slightly from 0.03% to 0.55%, suggesting tight profitability. The EBIT and EBITDA margins are also relatively modest, indicating room for operational efficiency improvements.

Balance Sheet

The company has a relatively high debt-to-equity ratio of 1.38, indicating reliance on debt financing, which could pose risks in fluctuating interest rate environments. The equity ratio stands at 29.54%, showing a moderate level of equity financing. ROE is a low 1.43%, reflecting limited returns on shareholder investment. Overall, the balance sheet suggests caution with leverage levels.

Cash Flow

The cash flow situation is concerning, with free cash flow being negative and no operating cash flow in 2024. The lack of positive free cash flow growth signifies potential liquidity challenges. Operating cash flow to net income and free cash flow to net income ratios are not assessable due to zero and negative values, indicating weak cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	607.76M	824.05M	785.00M	713.59M	617.37M	482.07M
Gross Profit	48.43M	59.19M	41.69M	34.52M	6.14M	74.62M
EBITDA	59.77M	77.39M	64.28M	79.61M	66.29M	87.11M
Net Income	7.69M	4.53M	258.00K	7.88M	431.00K	17.51M
Balance Sheet
Total Assets	1.02B	1.07B	1.09B	1.06B	873.55M	810.31M
Cash, Cash Equivalents and Short-Term Investments	113.91M	128.79M	144.31M	153.31M	186.14M	126.92M
Total Debt	377.47M	435.88M	451.70M	328.90M	299.74M	196.84M
Total Liabilities	541.19M	605.13M	630.30M	598.95M	461.33M	391.68M
Stockholders Equity	324.00M	316.35M	311.81M	315.39M	307.12M	314.68M
Cash Flow
Free Cash Flow	35.02M	36.43M	-109.63M	-116.79M	68.29M	73.82M
Operating Cash Flow	39.28M	67.46M	-35.34M	36.95M	72.25M	104.13M
Investing Cash Flow	-4.05M	-44.51M	-74.28M	-123.74M	-2.36M	-78.28M
Financing Cash Flow	-45.41M	-38.66M	100.45M	52.78M	-10.26M	-31.56M

Tianjin Tianbao Energy Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.66
• 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:1671, the sentiment is Negative. The current price of 0.66 is below the 20-day moving average (MA) of 0.67, below the 50-day MA of 0.72, and below the 200-day MA of 0.73, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 35.48 is Neutral, neither overbought nor oversold. The STOCH value of 48.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1671.

Tianjin Tianbao Energy Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1853	70 Outperform	HK$714.05M	11.43	5.03%	4.60%	7.52%	-60.01%
1811	69 Neutral	HK$11.45B	6.44	13.41%	4.29%	-6.80%	-10.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0090	59 Neutral	HK$614.52M	16.18	4.04%	1.05%	16.01%	-53.67%
1671	53 Neutral	HK$105.55M	7.76	3.93%	2.27%	-1.46%	834.07%
1265	49 Neutral	HK$329.24M	-5.77	-3.93%	―	-11.42%	65.17%
1257	44 Neutral	HK$1.88B	-5.10	-3.42%	3.08%	-3.25%	12.59%

Tianjin Tianbao Energy Co., Ltd. Class H Corporate Events

Tianjin Tianbao Energy Enhances Shareholder Communication Policy

Tianjin Tianbao Energy Co., Ltd. has adopted a Shareholders’ Communication Policy, effective September 22, 2025, aimed at enhancing communication with shareholders and stakeholders. The policy outlines the company’s commitment to providing balanced information, encouraging active dialogue, and ensuring shareholders can exercise their rights effectively. It includes provisions for corporate communication, ensuring timely publication of documents in compliance with the Hong Kong Stock Exchange’s Listing Rules, and offers shareholders the choice of language and format for receiving communications.

Tianjin Tianbao Energy Co., Ltd. Approves Key Governance Changes at EGM

Tianjin Tianbao Energy Co., Ltd. held its first extraordinary general meeting of 2025 on September 22, where shareholders approved significant amendments to the company’s Articles of Association and the abolition of the Board of Supervisors. These changes, passed unanimously, reflect a strategic shift in the company’s governance structure, potentially impacting its operational efficiency and stakeholder relations.

Tianjin Tianbao Energy Enhances Corporate Governance with Revised Remuneration Committee Terms

Tianjin Tianbao Energy Co., Ltd. has revised the terms of reference for its Remuneration Committee to enhance its corporate governance structure. The committee, responsible for assessing and advising on the remuneration of directors and senior management, will consist of a majority of independent non-executive directors, ensuring impartiality and compliance with relevant laws and regulations.

Tianjin Tianbao Energy Enhances Audit Committee Governance

Tianjin Tianbao Energy Co., Ltd. has revised the terms of reference for its Audit Committee to enhance board decision-making and corporate governance. The committee will oversee internal and external audits, risk management, and significant investments, aiming to strengthen the company’s internal control systems and ensure effective supervision.

Tianjin Tianbao Energy Enhances Governance with Revised Nomination Committee Terms

Tianjin Tianbao Energy Co., Ltd. has revised the terms of reference for its Nomination Committee, effective September 22, 2025, to enhance corporate governance and board composition. The committee, comprising at least three directors with a majority being independent non-executive directors, is tasked with advising on the selection of directors and senior management, thereby reinforcing the company’s strategic development and operational efficiency.