Jilin Province Chuncheng Heating Company Limited Class H (1853) AI Stock Analysis

• Market Cap: HK$896.06M
• Dividend Yield: 4.6%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 14.3
• Beta (1Y): -0.15
• Revenue Growth: 7.52%
• EPS Growth: -60.01%
• Country: HK
• Employees: 1,595
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 0.25
• Shares Outstanding: 116,700,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.37
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 0.00
• 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: 70 Outperform
• Price Target: ―

Jilin Province Chuncheng Heating Company Limited Class H demonstrates a stable financial position with strong equity and low debt levels, which supports long-term sustainability. However, challenges in profitability and cash flow consistency are notable concerns. The technical analysis indicates a neutral trend with potential short-term volatility. Despite these challenges, the stock's valuation is attractive, with a low P/E ratio and high dividend yield, making it appealing for value and income investors. Overall, the stock is positioned for moderate performance with potential for improvement in profitability and operational consistency.

Positive Factors

Strong Equity Position

A strong equity position indicates solid asset backing, providing financial stability and resilience against market fluctuations.

Stable Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and maintain demand for its heating services.

Leadership Change

New leadership with industry experience can enhance strategic direction and operational efficiency, potentially driving long-term growth.

Negative Factors

Declining Profit Margins

Declining profit margins suggest rising operational costs or inefficiencies, which could impact long-term profitability and competitiveness.

Inconsistent Cash Flow

Inconsistent cash flow can lead to challenges in meeting financial obligations and funding growth initiatives, affecting financial stability.

Profit Decline

A significant decline in profits indicates potential operational challenges and could affect investor confidence and future investment capacity.

Jilin Province Chuncheng Heating Company Limited Class H Business Overview & Revenue Model

Company Description

Jilin Province Chuncheng Heating Company Limited provides heat supply services in the People's Republic of China. The company is involved in the provision, distribution, and transmission of heat; and pipeline connection activities. As of December 31, 2021, its heat service area consisted of approximately 61.795 million square meters. The company also offers engineering construction and maintenance; design, consulting, and feasibility studies related to heating projects; electrical and instrument maintenance and repair services; and supplies biomass heat. It serves approximately 500,000 residential and non-residential users. The company was incorporated in 2017 and is headquartered in Changchun, China. Jilin Province Chuncheng Heating Company Limited is a subsidiary of Changchun Chuncheng Investment Development Group Company Limited.

How the Company Makes Money

The company generates revenue primarily through the sale of centralized heating services. This involves charging customers for the heat energy consumed over a specific billing period, typically measured in gigajoules or other standard units of energy. Revenue streams are bolstered by long-term contracts with municipal governments and private entities, ensuring a stable customer base. Additionally, the company may engage in strategic partnerships with local governments for infrastructure development and maintenance, which can provide supplementary income. Seasonal demand fluctuations, regulatory frameworks, and energy prices significantly influence the company's earnings.

Jilin Province Chuncheng Heating Company Limited Class H Financial Statement Overview

Summary

Jilin Province Chuncheng Heating Company Limited Class H exhibits a stable financial position with strong equity and low debt levels, which is a positive aspect for long-term sustainability. However, the declining net profit margins and return on equity indicate potential areas for improvement in profitability. Cash flow generation has been inconsistent, pointing to potential volatility in operational cash cycles. Overall, the company is in a stable position but needs to address profitability and cash flow consistency to enhance financial performance.

Income Statement

The company's gross profit margin has remained relatively stable, showcasing solid profitability in terms of production efficiency. However, net profit margin has seen a decline in recent years, indicating that operating expenses or other deductions may be rising. Revenue growth is modest, with a slight uptick in the most recent year, suggesting potential for future revenue expansion.

Balance Sheet

The company maintains a strong equity position with a favorable equity ratio, indicating solid asset backing. The debt-to-equity ratio is low, pointing to prudent leverage management. However, the return on equity has declined, indicating challenges in generating profits from shareholders' equity.

Cash Flow

Free cash flow growth has been variable, with significant fluctuations over the years. The operating cash flow to net income ratio is not available for the latest period, limiting insights. However, historically, the company has shown a strong capability to generate cash compared to net income, underscoring solid cash-generating performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.83B	1.81B	1.69B	1.65B	1.65B	1.90B
Gross Profit	277.25M	306.67M	265.89M	230.44M	325.15M	307.45M
EBITDA	232.70M	257.42M	287.46M	313.55M	316.47M	357.48M
Net Income	58.66M	99.90M	120.96M	114.67M	122.76M	170.51M
Balance Sheet
Total Assets	2.47B	3.75B	3.01B	3.04B	2.89B	3.23B
Cash, Cash Equivalents and Short-Term Investments	466.96M	1.46B	1.12B	1.03B	664.31M	782.40M
Total Debt	559.92M	628.80M	192.26M	234.48M	1.45M	1.47M
Total Liabilities	1.32B	2.70B	2.02B	2.13B	1.95B	2.35B
Stockholders Equity	1.15B	1.04B	989.85M	911.90M	940.28M	878.15M
Cash Flow
Free Cash Flow	-656.96M	0.00	370.18M	195.72M	45.86M	349.93M
Operating Cash Flow	-532.93M	0.00	399.34M	246.15M	124.00M	416.93M
Investing Cash Flow	-378.12M	0.00	-29.16M	-50.43M	-139.14M	-298.73M
Financing Cash Flow	-77.76M	0.00	-289.37M	170.16M	-52.94M	-88.86M

Jilin Province Chuncheng Heating Company Limited Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.92
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1853, the sentiment is Positive. The current price of 1.92 is above the 20-day moving average (MA) of 1.66, above the 50-day MA of 1.58, and above the 200-day MA of 1.56, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 72.21 is Negative, neither overbought nor oversold. The STOCH value of 99.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1853.

Jilin Province Chuncheng Heating Company Limited Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1853	70 Outperform	HK$896.06M	14.34	5.03%	4.60%	7.52%	-60.01%
3768	69 Neutral	HK$730.67M	2.74	4.69%	―	-9.45%	-17.46%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
1940	60 Neutral	HK$1.90B	11.49	9.25%	―	-3.67%	38.19%
1600	59 Neutral	HK$2.88B	9.09	4.88%	4.94%	7.55%	-32.06%
1671	52 Neutral	HK$87.96M	6.47	3.93%	2.27%	-1.46%	834.07%
1265	45 Neutral	HK$323.72M	-5.68	-3.93%	―	-11.42%	65.17%

Jilin Province Chuncheng Heating Company Limited Class H Corporate Events

Jilin Province Chuncheng Heating Completes Major Asset Acquisition

Jilin Province Chuncheng Heating Company Limited has completed a major transaction involving the acquisition of heat production assets from its Controlling Shareholder Group. This acquisition, finalized on October 31, 2025, transfers all interests, rights, and obligations of the assets to the company, potentially enhancing its operational capabilities and market positioning.

Jilin Province Chuncheng Heating Resolves Asset Acquisition Breach with Compensation Agreement

Jilin Province Chuncheng Heating Company Limited announced a compensation arrangement following a breach by Changre Group in their asset acquisition agreement. The company will proceed with acquiring certain heat production assets excluding land, while Changre Group will grant a temporary right of use for the land, ensuring continued operations during the 2025-2026 heat supply period.