CGN New Energy Holdings Co., Ltd. (1811) AI Stock Analysis

• Market Cap: HK$11.93B
• Dividend Yield: 4.05%
• Average Volume (3M): 17.84M
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.75
• Revenue Growth: -6.80%
• EPS Growth: -10.25%
• Country: HK
• Employees: 2,409
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.30
• Shares Outstanding: 4,289,924,000
• 10 Day Avg. Volume: 17,729,500
• 30 Day Avg. Volume: 17,837,535
• PEG Ratio: -0.72
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.68
• P/FCF Ratio: -3.11
• 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: 69 Neutral
• Price Target: HK$3.00 ▲(7.91% Upside)

The overall stock score of 69 reflects a balance between strong valuation metrics and technical indicators, offset by financial performance concerns, particularly high leverage and negative free cash flow. The stock's undervaluation and positive price trends are significant strengths, while financial risks require careful monitoring.

Positive Factors

Profitability Margins

Strong profitability margins suggest efficient cost management and pricing strategies, contributing to sustainable financial health over the long term.

Cash Generation Ability

Adequate cash generation relative to net income indicates the company's ability to support operations and invest in growth, enhancing long-term stability.

Market Position

Being a prominent player in renewable energy positions the company well to capitalize on industry growth trends and regulatory support for clean energy.

Negative Factors

Declining Revenue Growth

Declining revenue growth may indicate challenges in market expansion or competitive pressures, potentially impacting future profitability and market share.

High Leverage

High leverage can strain financial flexibility, increasing risk during economic downturns or interest rate hikes, affecting long-term financial stability.

Negative Free Cash Flow

Negative free cash flow suggests potential liquidity issues, limiting the company's ability to invest in growth opportunities or reduce debt, impacting long-term prospects.

CGN New Energy Holdings Co., Ltd. Business Overview & Revenue Model

Company Description

CGN New Energy Holdings Co., Ltd. (1811) is a leading energy company based in China, primarily focused on the development, investment, and operation of renewable energy projects. The company operates in various sectors, including wind power, solar energy, and other clean energy solutions, aiming to contribute to the reduction of carbon emissions and promote sustainable energy development. CGN New Energy's core services include the development and management of renewable energy facilities, providing clean energy solutions to a growing market.

How the Company Makes Money

CGN New Energy generates revenue through the sale of electricity produced from its renewable energy projects, including wind and solar power plants. The company enters into long-term power purchase agreements (PPAs) with utility companies and other customers, ensuring a steady income stream. Additionally, CGN New Energy may receive government subsidies and incentives related to renewable energy production, which contribute to its earnings. The company's strategic partnerships with local and international firms in the energy sector also enhance its project financing capabilities and market reach, further bolstering its revenue generation.

CGN New Energy Holdings Co., Ltd. Financial Statement Overview

Summary

CGN New Energy Holdings shows strong profitability margins but faces challenges with declining revenue growth and high leverage. The negative free cash flow and high debt-to-equity ratio raise concerns about financial flexibility and risk management.

Income Statement

The company has shown a declining revenue trend over the years, with a revenue decrease of 10.99% from 2023 to 2024. The gross profit margin for 2024 was approximately 59.73% and the net profit margin was around 12.71%, indicating healthy profitability. However, EBIT and EBITDA margins have slightly decreased, suggesting rising operational costs or reduced efficiencies.

Balance Sheet

CGN New Energy Holdings has a high debt-to-equity ratio of approximately 3.94 in 2024, indicating significant leverage which could pose financial risks. The return on equity was 15.33%, showing decent profitability relative to shareholder equity. The equity ratio was around 18.56%, suggesting moderate financial stability.

Cash Flow

The company experienced negative free cash flow in 2024, indicating that capital expenditures exceeded operating cash flow, which may be a concern for liquidity. The operating cash flow to net income ratio was approximately 2.03, suggesting adequate cash generation relative to net income, although free cash flow to net income ratio was negative, highlighting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.95B	2.19B	2.43B	1.78B	1.15B
Gross Profit	1.13B	1.17B	1.17B	1.14B	948.62M	623.11M
EBITDA	823.27M	872.07M	896.23M	925.62M	745.94M	480.50M
Net Income	228.09M	248.02M	267.69M	195.15M	244.27M	162.09M
Balance Sheet
Total Assets	9.12B	8.72B	8.35B	8.34B	8.73B	6.98B
Cash, Cash Equivalents and Short-Term Investments	219.06M	158.38M	301.67M	455.00M	378.14M	398.85M
Total Debt	6.67B	6.37B	5.91B	5.93B	6.30B	5.11B
Total Liabilities	7.21B	6.96B	6.66B	6.84B	7.24B	5.68B
Stockholders Equity	1.77B	1.62B	1.54B	1.36B	1.37B	1.21B
Cash Flow
Free Cash Flow	-355.04M	-423.80M	36.92M	279.61M	-913.12M	-1.13B
Operating Cash Flow	544.98M	502.63M	681.55M	642.38M	346.64M	256.88M
Investing Cash Flow	-933.62M	-934.73M	-611.18M	-373.16M	-1.28B	-1.27B
Financing Cash Flow	471.52M	297.02M	-212.55M	-173.38M	906.39M	1.00B

CGN New Energy Holdings Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1811, the sentiment is Positive. The current price of 2.78 is above the 20-day moving average (MA) of 2.63, above the 50-day MA of 2.78, and above the 200-day MA of 2.49, indicating a bullish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 60.24 is Neutral, neither overbought nor oversold. The STOCH value of 79.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1811.

CGN New Energy Holdings Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1816	73 Outperform	HK$199.79B	14.57	7.61%	3.52%	-1.16%	-14.97%
0836	73 Outperform	HK$92.98B	7.07	13.23%	5.83%	1.42%	-10.32%
2380	72 Outperform	HK$42.68B	11.72	7.09%	6.67%	4.20%	-5.31%
1811	69 Neutral	HK$11.93B	6.71	13.41%	4.05%	-6.80%	-10.25%
0916	67 Neutral	$108.17B	10.25	6.88%	5.20%	-9.28%	-7.71%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
1798	60 Neutral	HK$15.93B	7.88	9.90%	6.03%	2.47%	-6.46%

CGN New Energy Holdings Co., Ltd. Corporate Events

CGN New Energy Enters Power Sale Services Agreement with CGN Wind Energy

CGN New Energy Holdings Co., Ltd. announced that its subsidiary, CGN Shenzhen, has entered into a Power Sale Services Framework Agreement with CGN Wind Energy, another subsidiary of its controlling shareholder. This agreement, effective from January 2026 to December 2028, involves the provision of various power sale services, including electricity and green certificate sales. The transactions are classified as continuing connected transactions under the Listing Rules, requiring reporting and annual review but exempt from circular and independent shareholders’ approval due to the applicable percentage ratios.

CGN New Energy Signs EPC Contract for 200MW Project

CGN New Energy Holdings Co., Ltd. announced that its subsidiary, CGN New Energy Yancheng, has entered into an Engineering, Procurement, and Construction (EPC) contract with China Energy Engineering Jiangsu Design Institute for a 200MW project. The contract, valued at approximately RMB567.2 million, includes design, engineering, procurement, and construction management, indicating a significant investment in expanding the company’s renewable energy capacity.

CGN New Energy Announces New Maintenance Services Agreement

CGN New Energy Holdings Co., Ltd. announced a Maintenance Services Framework Agreement between its wholly owned subsidiary, CGN Yunnan, and its non-wholly owned subsidiary, CGN Chuxiong Mouding. This agreement, effective from January 1, 2026, to December 31, 2028, involves CGN Yunnan providing maintenance services for various energy projects. The transactions are considered continuing connected transactions under the Listing Rules, subject to reporting and annual review requirements but exempt from circular and independent shareholders’ approval.

CGN New Energy Reports Decline in October 2025 Power Generation

CGN New Energy Holdings Co., Ltd. reported a 7.4% decrease in power generation for October 2025 compared to the same period in 2024, with significant declines in Korea projects and PRC wind projects, while PRC solar projects saw a notable increase. The overall power generation for the first ten months of 2025 also decreased by 3.5% year-on-year, reflecting challenges in certain sectors and growth in others, impacting the company’s operational dynamics and market positioning.

Leadership Change at CGN New Energy Holdings

CGN New Energy Holdings Co., Ltd. announced the resignation of Mr. Li Guangming from his roles as President and Executive Director due to personal commitments, effective October 21, 2025. The Chairman, Mr. Zhang Zhiwu, will temporarily assume the President’s duties until a successor is appointed, ensuring continuity in leadership during this transition.

CGN New Energy Holdings Announces Board Roles and Functions

CGN New Energy Holdings Co., Ltd. has announced the roles and functions of its board of directors and their respective committee memberships. This announcement provides clarity on the leadership structure, which is crucial for stakeholders to understand the company’s governance and strategic direction.

CGN New Energy Reports Mixed Power Generation Results for September 2025

CGN New Energy Holdings Co., Ltd. reported a 14.9% decrease in power generation for September 2025 compared to the same period in 2024, with significant declines in wind projects due to lower wind speeds. However, solar and gas-fired projects saw substantial increases in output, driven by capacity expansion and higher dispatch loads, respectively. The overall power generation for the first nine months of 2025 also saw a slight decline of 3.0%, reflecting mixed performance across different energy sources.

CGN New Energy Reports Mixed Power Generation Results for August 2025

CGN New Energy Holdings Co., Ltd. reported a 5.7% decrease in power generation for August 2025 compared to the previous year, with significant growth in solar and wind projects in China, but a notable decline in Korean projects. The overall power generation for the first eight months of 2025 also saw a slight decrease of 1.6%, reflecting mixed performance across different energy sources and regions, impacting the company’s operational dynamics and market positioning.