China Risun Group Ltd. (1907) AI Stock Analysis

• Market Cap: HK$12.25B
• Dividend Yield: 1.16%
• Average Volume (3M): 6.86M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: -15.17%
• EPS Growth: -125.24%
• Country: HK
• Employees: 7,389
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): <0.01
• Shares Outstanding: 4,454,186,000
• 10 Day Avg. Volume: 6,618,426
• 30 Day Avg. Volume: 6,856,105
• PEG Ratio: -5.76
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -9.11
• 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: HK$3.13
• Price Target Upside: 39.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$3.00 ▲(33.93% Upside)

The overall stock score of 54 reflects the company's stable revenue growth but significant profitability challenges and high leverage. The technical analysis indicates a bearish trend, while the valuation is impacted by a negative P/E ratio. The dividend yield provides some support, but overall, the stock faces multiple headwinds.

Positive Factors

Free cash flow improvement

A strong rise in free cash flow indicates the business is generating more internal liquidity independent of net income volatility. This durable cash generation can fund maintenance capex, service debt, and support operations without immediate external financing, improving financial flexibility over months.

Stable revenue trend

Positive year-over-year revenue growth signals sustained demand for coal-derived chemical products and supports visibility for near-term planning. Consistent top-line trends help absorb cyclical swings in input costs and provide a foundation for margin recovery initiatives and operational planning over 2-6 months.

Moderate equity ratio / asset structure

A moderate equity ratio suggests assets are not excessively thinly capitalized and there is some shareholder buffer versus creditors. While leverage is high, this balanced asset composition supports operational continuity and provides some capacity to restructure financing or access liquidity if needed in the medium term.

Negative Factors

High financial leverage

A debt-to-equity ratio above 2x reflects significant reliance on borrowed funds, increasing interest expense and refinancing risk. High leverage constrains capital allocation, limits ability to invest in growth or weather downturns, and elevates the probability of covenant stress or liquidity strains over coming months.

Collapsed net profitability

An effectively zero net margin means the company is barely earning on sales, leaving little cushion for cost inflation or adverse volume swings. This undermines retained earnings, hampers reinvestment, and makes recovery dependent on sustained cost improvements or pricing power, a difficult structural challenge.

Very low return on equity and earnings quality

ROE near zero signals poor capital efficiency and weak profitability relative to shareholder equity. Coupled with noted net income volatility and a weakened operating-cash-flow-to-net-income ratio, this points to deteriorating earnings quality and a structural need to improve margins or reduce leverage to restore investor returns.

China Risun Group Ltd. Business Overview & Revenue Model

Company Description

China Risun Group Limited, together with its subsidiaries, produces, sells, and distributes coke, coking chemicals, and refined chemicals in the People's Republic of China. The company operates through four segments: Coke and Coking Chemicals Manufacturing, Refined Chemicals Manufacturing, Operation Management, and Trading. Its coking and refined chemical products include crude benzene, industrial naphthalene phthalic anhydride, coke oven gas methanol, coal-tar pitch, and caprolactam. The company also offers operation management service to the third-party coke and chemical companies, as well as training on safety management and operational skills services. In addition, it trades in coke, coking chemical, and refined chemical products; and engages in real estate development activities. The company serves companies in the iron and steel, non-ferrous, coking, and chemical industries. It also exports its products. The company was formerly known as China Risun Coal Chemicals Group Limited and changed its name to China Risun Group Limited in July 2018. China Risun Group Limited was founded in 1995 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China Risun Group Ltd. generates revenue primarily through the production and sale of metallurgical coke and chemical products derived from coal. Key revenue streams include sales of coke to steel manufacturers, which constitutes a significant portion of its income, as well as the sale of by-products such as coal tar and ammonia. The company also engages in logistics services, facilitating the transportation and distribution of its products. Strategic partnerships with major steel companies and chemical manufacturers enhance its market position and contribute to stable income streams. Additionally, factors such as favorable government policies in the coal and chemical sectors and investments in technology and production efficiency play a crucial role in bolstering its earnings.

China Risun Group Ltd. Financial Statement Overview

Summary

China Risun Group Ltd. demonstrates stable revenue growth but faces profitability challenges with a declining net profit margin. The balance sheet reveals high leverage, posing financial risks, though the equity ratio indicates a balanced asset structure. Cash flow generation shows improvement, reflecting operational resilience, but net income volatility remains a concern.

Income Statement

The company shows a stable revenue growth trend with a Revenue Growth Rate of 3.20% in 2024 compared to 2023. However, the net profit margin has significantly decreased to 0.04% in 2024, indicating profitability challenges. Gross Profit Margin is moderate at 7.34%, and the EBIT Margin has decreased to 2.97% in 2024, suggesting reduced operational efficiency.

Balance Sheet

The Debt-to-Equity Ratio is relatively high at 2.38, indicating significant leverage, which poses a risk. Return on Equity (ROE) has drastically fallen to 0.16% in 2024, suggesting poor profitability relative to shareholder equity. The Equity Ratio remains moderate at 21.32%, indicating a balanced asset structure but high reliance on debt.

Cash Flow

The Free Cash Flow Growth Rate shows a strong increase, reflecting improved cash generation. However, Operating Cash Flow to Net Income Ratio has weakened due to the drop in net income. The Free Cash Flow to Net Income Ratio is favorable, indicating resilience in cash flow generation despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.88B	47.54B	46.07B	43.14B	39.37B	19.78B
Gross Profit	3.32B	3.49B	3.32B	4.28B	5.53B	3.22B
EBITDA	3.40B	3.50B	4.37B	4.63B	5.45B	3.22B
Net Income	-63.08M	20.13M	860.81M	1.86B	2.61B	1.65B
Balance Sheet
Total Assets	63.26B	59.84B	53.84B	46.10B	36.80B	24.21B
Cash, Cash Equivalents and Short-Term Investments	2.76B	2.26B	1.25B	1.40B	2.37B	1.19B
Total Debt	35.13B	30.38B	26.31B	20.70B	16.70B	10.57B
Total Liabilities	47.62B	43.96B	39.36B	33.51B	25.69B	15.94B
Stockholders Equity	12.57B	12.76B	12.90B	12.11B	10.98B	8.13B
Cash Flow
Free Cash Flow	2.46B	-1.24B	134.87M	-1.22B	534.69M	-725.01M
Operating Cash Flow	2.42B	1.44B	2.20B	3.16B	4.21B	1.14B
Investing Cash Flow	-7.05B	-3.64B	-1.71B	-9.18B	-5.13B	-2.19B
Financing Cash Flow	3.32B	3.05B	-455.15M	4.93B	2.02B	1.16B

China Risun Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.24
• 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:1907, the sentiment is Positive. The current price of 2.24 is below the 20-day moving average (MA) of 2.35, below the 50-day MA of 2.29, and below the 200-day MA of 2.41, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 81.27 is Negative, neither overbought nor oversold. The STOCH value of 96.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1907.

China Risun Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0746	73 Outperform	HK$4.98B	8.76	9.36%	6.70%	-3.73%	6.09%
0189	62 Neutral	HK$20.29B	14.68	10.43%	0.98%	-1.43%	113.67%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
0609	61 Neutral	HK$1.45B	22.48	2.46%	3.52%	-5.29%	-32.47%
1702	59 Neutral	HK$1.03B	14.37	3.61%	2.20%	-8.51%	-68.34%
1907	54 Neutral	HK$12.25B	-172.96	-0.52%	1.16%	-15.17%	-125.24%
2198	50 Neutral	HK$5.47B	7.25	13.87%	―	9.20%	213.87%

China Risun Group Ltd. Corporate Events

China Risun Grants 4.5 Million Share Awards to 600 Employees Under Long-Term Incentive Plan

China Risun Group Limited has granted a total of 4,503,000 share awards at no purchase price to 600 Group employees under its share award plan adopted in 2025, with the grant made on 22 January 2026 at a reference closing price of HK$2.28 per share. The awards are subject to a 60‑month vesting period to January 2031 and performance conditions tied to consolidated revenue, strategic objectives and operational targets, with potential acceleration (but not to less than 12 months) and a clawback mechanism in cases of fraud, serious misconduct or material misstatement, underscoring the company’s intent to attract, retain and incentivise staff while reinforcing performance alignment and safeguarding shareholder interests.

The most recent analyst rating on (HK:1907) stock is a Sell with a HK$2.00 price target. To see the full list of analyst forecasts on China Risun Group Ltd. stock, see the HK:1907 Stock Forecast page.

China Risun Group Ltd. Provides $269.6M Guarantee for Joint Venture Financing

China Risun Group Ltd. has announced a provision of a guarantee in connection with a financing arrangement for its joint venture, Risun Wei Shan. The company, holding a 51% stake in the joint venture, has committed to guarantee up to US$269.6 million, aligning with its proportionate equity interest. This move facilitates a US$453 million financing package aimed at refinancing Risun Wei Shan’s existing debts and supporting its working capital needs. While the guarantee showcases the company’s financial commitment to its collaborative projects, it also heightens its financial exposure, which stakeholders will monitor closely.

The most recent analyst rating on (HK:1907) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on China Risun Group Ltd. stock, see the HK:1907 Stock Forecast page.

China Risun Group Terminates Major Transaction with Binhai Energy

China Risun Group Limited has announced the termination of a proposed transaction involving the disposal of equity interests in Cangzhou Risun Chemicals Limited in exchange for shares from Tianjin Binhai Energy & Development Co., Ltd. The termination, agreed upon by all parties involved, is not expected to adversely affect Risun Group’s business operations or financial standing. The company remains open to future strategic collaborations with Binhai Energy, indicating ongoing efforts to strengthen its industry positioning.

The most recent analyst rating on (HK:1907) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on China Risun Group Ltd. stock, see the HK:1907 Stock Forecast page.