United Strength Power Holdings Ltd. (2337) AI Stock Analysis

• Market Cap: HK$647.89M
• Dividend Yield: 2.34%
• Average Volume (3M): 591.87K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.25
• Revenue Growth: -13.08%
• EPS Growth: -43.83%
• Country: HK
• Employees: 1,375
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): -0.02
• Shares Outstanding: 374,502,000
• 10 Day Avg. Volume: 583,400
• 30 Day Avg. Volume: 591,866
• PEG Ratio: 0.12
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 145.44
• 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: 55 Neutral
• Price Target: HK$2.00 ▲(7.53% Upside)

The overall stock score is driven by mixed financial performance, with strong free cash flow growth offset by declining revenue and low profitability margins. Technical analysis indicates a neutral trend, and valuation metrics suggest fair pricing with a moderate dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Cash Flow Growth

Strong free cash flow growth indicates robust cash generation, enhancing financial flexibility and enabling strategic investments or debt reduction.

Strategic Partnerships

These partnerships ensure a steady supply and distribution of natural gas, strengthening market position and providing a competitive edge in the energy sector.

Clean Energy Focus

Focus on clean energy aligns with global sustainability trends, potentially driving long-term demand and regulatory support for natural gas solutions.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in maintaining sales momentum, which could impact long-term growth prospects and market competitiveness.

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in growth opportunities and weather economic downturns.

Low Profitability Margins

Low profitability margins suggest limited pricing power and operational efficiency, which could hinder long-term financial performance and shareholder returns.

United Strength Power Holdings Ltd. Business Overview & Revenue Model

Company Description

United Strength Power Holdings Ltd. (2337) is a company engaged primarily in the renewable energy sector, focusing on the development and operation of power generation projects. The company specializes in solar and wind energy solutions, contributing to the global transition towards sustainable energy sources. United Strength Power Holdings Ltd. offers a range of services including project development, engineering, procurement, and construction (EPC) services, as well as operation and maintenance of energy facilities.

How the Company Makes Money

United Strength Power Holdings Ltd. generates revenue through multiple key streams associated with its renewable energy projects. The company earns money by developing and selling power generation facilities, often entering into long-term power purchase agreements (PPAs) with utility companies or large consumers of energy, ensuring a steady cash flow. Additionally, the company's EPC services provide an income source as it undertakes construction projects for other developers or government entities in need of renewable energy infrastructure. The operation and maintenance services also contribute to recurring revenue, as existing clients require ongoing support for their energy facilities. Partnerships with governmental bodies and private enterprises for renewable energy initiatives further bolster its earnings potential.

United Strength Power Holdings Ltd. Financial Statement Overview

Summary

The company faces challenges with declining revenue and low profitability margins, partially offset by strong free cash flow growth. High leverage poses a risk, but there is a reasonable ability to convert earnings into cash. Overall, financial health is mixed, with areas needing improvement in revenue growth and margin expansion.

Income Statement

The income statement shows declining revenue with a negative growth rate of -5.16% in the TTM period, indicating challenges in maintaining sales momentum. Margins are relatively low, with a gross profit margin of 5.44% and a net profit margin of 0.48%, reflecting pressure on profitability. The EBIT and EBITDA margins are modest at 1.06% and 1.40%, respectively, suggesting limited operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.85, indicating significant leverage which could pose financial risks. The return on equity (ROE) is moderate at 6.71%, showing average profitability relative to equity. The equity ratio stands at 20.08%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 93.89% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.07, and the free cash flow to net income ratio is 0.90, suggesting a healthy conversion of earnings into cash flow, although operating cash flow coverage is relatively low.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.97B	7.72B	7.35B	6.09B	5.83B	3.48B
Gross Profit	379.12M	439.85M	422.26M	393.10M	612.72M	470.29M
EBITDA	97.55M	149.87M	170.16M	150.61M	369.79M	271.07M
Net Income	33.54M	67.79M	39.49M	16.53M	176.62M	123.28M
Balance Sheet
Total Assets	2.43B	1.88B	1.91B	1.56B	1.54B	1.27B
Cash, Cash Equivalents and Short-Term Investments	83.21M	70.28M	46.52M	138.65M	101.77M	138.62M
Total Debt	902.54M	757.91M	692.42M	650.89M	684.47M	604.29M
Total Liabilities	1.91B	1.33B	1.40B	1.09B	1.10B	988.03M
Stockholders Equity	488.94M	510.67M	469.50M	428.68M	411.80M	253.60M
Cash Flow
Free Cash Flow	116.63M	3.68M	-13.42M	81.39M	39.22M	138.80M
Operating Cash Flow	128.88M	18.88M	34.80M	93.52M	63.01M	182.41M
Investing Cash Flow	-5.13M	-7.13M	-41.77M	-11.18M	-13.27M	-42.32M
Financing Cash Flow	-110.45M	12.07M	-6.92M	-76.25M	-107.29M	-91.44M

United Strength Power Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2337, the sentiment is Negative. The current price of 1.86 is above the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.78, and above the 200-day MA of 1.75, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 44.99 is Neutral, neither overbought nor oversold. The STOCH value of 24.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2337.

United Strength Power Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0603	72 Outperform	HK$751.23M	5.41	4.05%	―	-12.48%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
2337	55 Neutral	HK$647.89M	17.76	7.01%	2.34%	-13.08%	-43.83%
8270	52 Neutral	HK$126.90M	-2.77	-31.34%	―	-29.86%	-791.02%
0931	49 Neutral	HK$4.01B	-28.89	-40.82%	―	23.08%	23.40%
2728	45 Neutral	HK$124.74M	-7.78	-25.25%	―	-0.55%	-340.00%
0332	40 Underperform	HK$117.82M	-0.06	―	―	-76.52%	-630.18%

United Strength Power Holdings Ltd. Corporate Events

United Strength Power Holdings Ltd. Announces Key Supply Agreements for 2026-2028

United Strength Power Holdings Ltd. has announced an extraordinary general meeting to approve two significant agreements: the 2026 Petroleum Supply Agreement and the 2026 Refined Oil Products Supply Agreement. These agreements, along with their proposed annual caps for the years 2026 to 2028, are set to be ratified and confirmed, potentially impacting the company’s operational capabilities and market positioning in the energy sector.

United Strength Power Holdings Ltd. Secures Future Supply Agreements

United Strength Power Holdings Ltd. has announced new agreements to continue its petroleum and refined oil products supply operations beyond 2025. The 2026 Petroleum Supply Agreement with Songyuan Petrochemical and the 2026 Refined Oil Products Supply Agreement with United Strength Vehicle Service will run from January 2026 to December 2028. These agreements are classified as non-exempt continuing connected transactions under Hong Kong’s Listing Rules due to the involvement of controlling shareholder Mr. Zhao, necessitating independent shareholder approval and compliance with reporting requirements.