Sichuan Energy Investment Development Co., Ltd. Class H (1713) AI Stock Analysis

• Market Cap: HK$2.65B
• Dividend Yield: 6.22%
• Average Volume (3M): 86.47K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.29
• Revenue Growth: 9.12%
• EPS Growth: 16.90%
• Country: HK
• Employees: 2,686
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): 0.14
• Shares Outstanding: 787,396,700
• 10 Day Avg. Volume: 115,800
• 30 Day Avg. Volume: 86,466
• PEG Ratio: 0.34
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.45
• P/FCF Ratio: -13.34
• 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: 72 Outperform
• Price Target: HK$3.00 ▲(21.95% Upside)

The overall stock score is driven by strong financial performance and attractive valuation metrics, despite technical indicators suggesting potential short-term weakness. The company's robust revenue growth and profitability improvements are significant strengths, while the cash flow challenges and lack of momentum are areas to watch.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, enhancing long-term sustainability and competitiveness.

Profitability Improvements

Improved profitability margins reflect efficient cost management and operational efficiency, supporting long-term financial health and shareholder value.

Strategic Partnerships

Collaborations with local and international firms enhance market reach and operational capacity, driving growth and competitive advantage in the energy sector.

Negative Factors

Cash Flow Challenges

Liquidity issues due to zero operating cash flow can constrain operational flexibility and investment capacity, impacting long-term growth potential.

Increasing Leverage

Increased leverage can heighten financial risk and limit strategic options, potentially affecting the company's ability to navigate economic downturns.

Stable but Unimproved EBIT/EBITDA Margins

Stable EBIT/EBITDA margins suggest limited operational improvement, which may hinder the company's ability to maximize profitability and shareholder returns.

Sichuan Energy Investment Development Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Sichuan Energy Investment Development Co., Ltd., a vertically integrated power supplier and service provider, generates, distributes, and sells electricity in Yibin City, Sichuan Province. It generates electricity through hydropower plants; and distributes electricity to household, general industrial and commercial, large industrial, state grid, and other users through its grid transmission and distribution system, as well as step-up and step-down substations. As of December 31, 2021, the company owned and operated 34 hydropower plants with a total installed capacity of 138,355 kilowatts; 2 units of 220 kilovolt (kV) substations with a capacity of 720,000 kilo-volt-ampere (kVA); 19 units of 110 kV substations with a total capacity of 942,000 kVA; and 59 units of 35 kV substations with a total capacity of 572,050 kVA. It also engages in electrical engineering construction activities; and the sale of electric equipment and materials.The company was incorporated in 2011 and is headquartered in Chengdu, the People's Republic of China.

How the Company Makes Money

The company generates revenue through several key streams: primarily, it earns income from the sale of electricity produced by its power generation facilities, including both thermal and renewable energy sources. Additionally, Sichuan Energy Investment Development Co., Ltd. engages in energy project investments and partnerships, collaborating with local and international firms to develop and operate energy infrastructure. Revenue is also derived from service contracts related to the construction and management of energy facilities, as well as potential government subsidies and incentives for renewable energy projects. The company's strategic partnerships in the energy sector help in expanding its operational capacity and market reach, thereby enhancing its overall earnings.

Sichuan Energy Investment Development Co., Ltd. Class H Financial Statement Overview

Summary

Sichuan Energy Investment Development Co., Ltd. exhibits strong revenue growth and profitability improvements, demonstrating effective cost management and strategic financial planning. Despite its solid equity position, the recent cash flow challenges warrant attention to ensure long-term liquidity stability.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase from 2023 to 2024. Gross Profit Margin and Net Profit Margin have improved, indicating strong operational performance. However, EBIT and EBITDA margins are stable but could be enhanced further.

Balance Sheet

The company maintains a solid equity base with an improving Debt-to-Equity ratio, reflecting prudent financial management. The Return on Equity has also seen a positive trend, although the Equity Ratio has slightly decreased, indicating an increase in leverage.

Cash Flow

The cash flow position is mixed, with fluctuating Free Cash Flow over the years. The Operating Cash Flow to Net Income Ratio is concerning due to zero operating cash flow reported in the latest period, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.02B	4.78B	4.16B	3.31B	3.17B	3.03B
Gross Profit	813.50M	796.69M	675.88M	572.34M	551.94M	547.43M
EBITDA	682.01M	666.84M	618.58M	504.00M	474.62M	447.49M
Net Income	407.53M	400.02M	339.00M	301.44M	269.56M	256.03M
Balance Sheet
Total Assets	7.44B	7.36B	6.32B	5.15B	4.63B	4.49B
Cash, Cash Equivalents and Short-Term Investments	622.72M	569.90M	500.26M	770.09M	589.98M	664.80M
Total Debt	970.39M	698.48M	627.06M	318.36M	317.57M	386.90M
Total Liabilities	3.75B	3.68B	2.92B	1.96B	1.64B	1.64B
Stockholders Equity	3.62B	3.61B	3.36B	3.15B	2.98B	2.84B
Cash Flow
Free Cash Flow	-476.42M	-160.36M	-488.96M	-113.43M	91.61M	189.44M
Operating Cash Flow	637.96M	602.89M	622.30M	561.35M	415.69M	476.30M
Investing Cash Flow	-1.10B	-759.11M	-1.19B	-541.48M	-143.44M	-426.64M
Financing Cash Flow	555.19M	220.57M	304.53M	153.72M	-188.53M	-329.20M

Sichuan Energy Investment Development Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.46
• 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:1713, the sentiment is Negative. The current price of 2.46 is below the 20-day moving average (MA) of 2.47, below the 50-day MA of 2.51, and below the 200-day MA of 2.52, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 44.73 is Neutral, neither overbought nor oversold. The STOCH value of 12.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1713.

Sichuan Energy Investment Development Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1713	72 Outperform	HK$2.65B	6.02	12.10%	6.22%	9.12%	16.90%
1250	69 Neutral	HK$4.38B	13.51	―	―	―	―
0686	68 Neutral	$2.60B	10.66	4.37%	8.47%	24.56%	―
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%
0527	48 Neutral	HK$1.08B	-7.25	―	―	5.48%	-11.10%
1257	44 Neutral	HK$1.86B	-5.16	-3.42%	3.04%	-3.25%	12.59%

Sichuan Energy Investment Development Co., Ltd. Class H Corporate Events

Sichuan Energy Investment Announces Key Connected Transactions and Lease Renewal

Sichuan Energy Investment Development Co., Ltd. announced several connected transactions, including an EPC contract with Yiliangruiyuan Hydropower and an equipment procurement agreement with Materials Industry Group. Additionally, the company has renewed a leasing agreement for substations with Changning Natural Gas for 2026. These transactions are subject to certain reporting requirements under the Hong Kong Listing Rules, reflecting the company’s ongoing strategic collaborations and operational expansions in the energy sector.

Sichuan Energy Investment Development Approves Key Governance Changes at EGM

Sichuan Energy Investment Development Co., Ltd. held its 2025 first extraordinary general meeting (EGM) in Chengdu, China, where key resolutions were unanimously approved. The meeting resulted in the approval of amendments to the Articles of Association, the abolition of the Supervisory Committee, and the appointment of a non-executive director, signaling a strategic shift in corporate governance.

Sichuan Energy Investment Announces Board Composition

Sichuan Energy Investment Development Co., Ltd. has announced the composition of its board of directors and their respective roles within the company. This announcement provides clarity on the leadership structure, potentially impacting the company’s strategic direction and governance, which is of interest to stakeholders and investors.

Sichuan Energy Investment Enhances Governance with New Audit Committee

Sichuan Energy Investment Development Co., Ltd. has established an audit committee within its board of directors to strengthen corporate governance and improve decision-making processes. This committee is tasked with overseeing financial reporting, auditing processes, and internal controls, ensuring transparency and accountability in the company’s operations.

Sichuan Energy Investment Announces 2025 Extraordinary General Meeting

Sichuan Energy Investment Development Co., Ltd. has announced its first extraordinary general meeting for 2025, scheduled for November 6. The meeting will address several key resolutions, including amendments to the Articles of Association, changes to the rules of procedure for general meetings and the board of directors, and the appointment of a new non-executive director. These changes could impact the company’s governance structure and operational focus, potentially influencing its strategic direction and stakeholder engagement.

Sichuan Energy Investment Announces Governance Reforms and Board Changes

Sichuan Energy Investment Development Co., Ltd. has announced a series of corporate governance changes, including the proposed abolition of its Supervisory Committee and amendments to its Articles of Association. These changes are part of a broader effort to align with state-owned enterprise reform guidelines and will shift the duties of the Supervisory Committee to the Audit Committee. Additionally, the company has announced the resignation of non-executive director Mr. Kong Ce, with a new appointment proposed to fill the vacancy. These developments are expected to streamline the company’s governance structure and enhance its compliance with regulatory standards.

Sichuan Energy Investment Announces 2025 Extraordinary General Meeting

Sichuan Energy Investment Development Co., Ltd. has announced its plan to hold the first extraordinary general meeting for the year 2025 on November 6, 2025. The meeting will determine the entitlement to attend and vote, with the register of members of H shares being closed from November 3 to November 6, 2025, impacting shareholders’ ability to transfer shares during this period.

Sichuan Energy Signs New Power Grid Agreement

Sichuan Energy Investment Development Co., Ltd. has announced the signing of the 2025–2027 Rural Power Grid Assets Usage Agreement with Hydropower Group, with annual transaction caps set at RMB67.0 million, RMB70.0 million, and RMB72.0 million for the respective years. This agreement is expected to enhance the company’s operations in the rural power grid sector, potentially strengthening its position in the energy market and impacting stakeholders positively.

Sichuan Energy Secures Construction Deal with Dege Gesaer Electric Power

Sichuan Energy Investment Development Co., Ltd. has entered into a Construction Agreement with Dege Gesaer Electric Power, a connected entity, to provide construction services for a project valued at RMB4,436,243.02. This transaction, classified as a connected transaction under Hong Kong’s Listing Rules, requires reporting and announcement due to its financial magnitude, though it is exempt from circular and independent shareholders’ approval requirements.