Ruifeng Power Group Co., Ltd. (2025) AI Stock Analysis

• Market Cap: HK$9.60B
• Dividend Yield: 0.19%
• Average Volume (3M): 595.96K
• Price to Earnings (P/E): 394.7
• Beta (1Y): 0.19
• Revenue Growth: 32.92%
• EPS Growth: 67.96%
• Country: HK
• Employees: 745
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.02
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 987,400
• 30 Day Avg. Volume: 595,957
• PEG Ratio: 1.73
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 2.50
• P/FCF Ratio: -41.01
• 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: 67 Neutral
• Price Target: HK$10.50 ▼(-8.70% Downside)

Ruifeng Power Group Co., Ltd. benefits from strong technical momentum and a solid financial foundation, but its high valuation poses a significant risk. The stock's upward trend is supported by positive technical indicators, yet the extremely high P/E ratio suggests potential overvaluation. Investors should be cautious of the valuation risk despite the company's growth trajectory and operational efficiency.

Positive Factors

Revenue Growth

The company's robust revenue growth trajectory indicates successful market expansion and product demand, supporting long-term business sustainability.

Operational Efficiency

Stable gross profit margins reflect effective cost management, which is crucial for maintaining competitiveness and profitability over time.

Financial Stability

A strong equity base and financial stability provide a solid foundation for future growth and resilience against economic fluctuations.

Negative Factors

Profitability Concerns

Low net profit margins suggest limited profitability, which could hinder the company's ability to reinvest in growth and innovation.

Cash Flow Variability

Inconsistent cash flow can impact the company's ability to fund operations and growth initiatives, posing a risk to financial health.

Debt Levels

Rising debt levels, although moderate, require careful management to avoid potential financial strain and maintain balance sheet strength.

Ruifeng Power Group Co., Ltd. Business Overview & Revenue Model

Company Description

Ruifeng Power Group Company Limited, an investment holding company, engages in the design, development, production, and sale of cylinder blocks and heads in the People's Republic of China. The company also offers structural components of cylinder blocks, including bearing caps and flywheels. It serves manufacturers of vehicles, including passenger, commercial, and industrial vehicles, as well as engine producers. The company was founded in 2002 and is headquartered in Shenzhou, the People's Republic of China. Ruifeng Power Group Company Limited is a subsidiary of Dragon Rise Ventures Limited.

How the Company Makes Money

Ruifeng Power Group generates revenue through several key streams: the sale of power generation equipment, including gas and wind turbines, which constitutes a significant portion of its income. The company also earns revenue from the installation and maintenance services of its products, ensuring long-term client relationships and recurring income. Additionally, Ruifeng engages in partnerships with governmental and private sectors for renewable energy projects, allowing it to participate in large-scale energy contracts. The increasing demand for sustainable energy solutions further enhances its revenue potential, particularly in the solar power and energy storage markets.

Ruifeng Power Group Co., Ltd. Financial Statement Overview

Summary

Ruifeng Power Group Co., Ltd. exhibits strong revenue growth and operational efficiency, though profitability has room for improvement. The balance sheet is robust, with a healthy equity base and manageable debt levels, indicating financial stability. Cash flow management requires attention to ensure consistent free cash flow generation. Overall, the company is on a positive growth trajectory, but focus on enhancing profitability and cash flow consistency is crucial for sustainable long-term growth.

Income Statement

Ruifeng Power Group Co., Ltd. has demonstrated strong revenue growth, increasing from CNY 355 million in 2019 to CNY 957 million in 2024, reflecting a robust expansion trajectory. The gross profit margin has remained stable, indicating efficient cost management despite fluctuations. The net profit margin has shown improvement over the years, although it remains relatively low, suggesting room for improving profitability further. The EBIT and EBITDA margins are healthy, supporting operational efficiency, but there is potential to enhance the bottom line further.

Balance Sheet

The company maintains a solid equity base, with stockholders' equity increasing steadily, enhancing financial stability. The debt-to-equity ratio is moderate, indicating a balanced approach to leveraging debt and equity financing. However, there is a slight increase in total debt over the years, which should be monitored. The equity ratio shows a strong reliance on shareholder funding relative to total assets, suggesting a conservative financial structure.

Cash Flow

The cash flow analysis indicates variability, with free cash flow fluctuating significantly over the years. Although operating cash flow has shown strength in certain years, the company needs to ensure consistent positive free cash flow to support growth initiatives. The operating cash flow to net income ratio is not available for the latest year, indicating a need for improved cash generation relative to income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	956.85M	718.49M	600.49M	679.76M	433.48M
Gross Profit	112.19M	101.29M	87.71M	97.47M	118.22M	106.49M
EBITDA	131.38M	130.65M	123.80M	119.93M	115.45M	111.26M
Net Income	22.61M	19.32M	11.27M	20.41M	36.57M	33.60M
Balance Sheet
Total Assets	1.83B	1.84B	1.64B	1.60B	1.51B	1.44B
Cash, Cash Equivalents and Short-Term Investments	26.14M	57.54M	20.55M	11.55M	30.01M	26.32M
Total Debt	367.84M	316.49M	243.52M	235.79M	160.06M	160.32M
Total Liabilities	837.45M	849.05M	654.33M	619.47M	537.48M	482.41M
Stockholders Equity	995.46M	994.54M	984.81M	984.53M	974.20M	958.26M
Cash Flow
Free Cash Flow	-18.19M	-58.27M	27.57M	-69.71M	16.26M	-28.41M
Operating Cash Flow	160.81M	180.91M	129.43M	93.52M	160.06M	61.46M
Investing Cash Flow	-169.81M	-221.10M	-100.82M	-160.57M	-142.04M	-102.28M
Financing Cash Flow	-147.00K	51.42M	-19.55M	59.02M	-24.38M	17.69M

Ruifeng Power Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.50
• 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:2025, the sentiment is Positive. The current price of 11.5 is above the 20-day moving average (MA) of 10.78, above the 50-day MA of 10.21, and above the 200-day MA of 5.95, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 76.66 is Negative, neither overbought nor oversold. The STOCH value of 86.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2025.

Ruifeng Power Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1571	76 Outperform	HK$3.84B	7.37	13.59%	13.26%	-3.80%	-27.62%
2025	67 Neutral	HK$9.60B	394.74	2.26%	0.19%	32.92%	67.96%
1760	64 Neutral	HK$2.16B	12.45	6.62%	3.20%	13.35%	-38.32%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6830	47 Neutral	HK$442.30M	8.28	3.56%	1.22%	14.93%	19.84%
0305	46 Neutral	HK$1.58B	16.55	4.50%	1.09%	-14.23%	276.62%