Add New Energy Investment Holdings Group Ltd. (2623) AI Stock Analysis

• Market Cap: HK$1.64B
• Dividend Yield: N/A
• Average Volume (3M): 61.61K
• Price to Earnings (P/E): 19.7
• Beta (1Y): -0.44
• Revenue Growth: -70.82%
• EPS Growth: 5182.22%
• Country: HK
• Employees: 119
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): -0.01
• Shares Outstanding: 350,286,530
• 10 Day Avg. Volume: 117,400
• 30 Day Avg. Volume: 61,611
• PEG Ratio: 0.27
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -0.86
• 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: 66 Neutral
• Price Target: HK$5.00 ▲(6.84% Upside)

The overall stock score of 66 reflects a mixed financial performance with improved profitability but significant revenue decline and cash flow issues. Strong technical indicators suggest bullish momentum, though high RSI indicates potential overbought conditions. The valuation is reasonable, but the lack of dividend yield may deter income investors.

Positive Factors

Improved Profitability

The improvement in return on equity indicates better efficiency in generating profits from shareholders' investments, enhancing long-term shareholder value.

Strong Equity Base

A strong equity base provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Net Profit Margin Increase

A significant increase in net profit margin reflects improved cost management and operational efficiency, contributing to sustainable profitability.

Negative Factors

Revenue Decline

A sharp decline in revenue suggests challenges in maintaining sales volume, which could impact long-term growth and market position if not addressed.

Negative Cash Flow

Persistent negative cash flow indicates liquidity challenges, potentially limiting the company's ability to invest in growth and meet financial obligations.

Increased Leverage

Higher reliance on debt financing raises financial risk, potentially impacting the company's ability to manage economic downturns and interest rate fluctuations.

Add New Energy Investment Holdings Group Ltd. Business Overview & Revenue Model

Company Description

Add New Energy Investment Holdings Group Limited, an investment holding company, engages in the exploration, mining, and processing of iron and ilmenite ores in the People's Republic of China. It primarily produces and sells iron and titanium concentrates to iron pellets and steel producers. The company's mines include Yangzhuang Iron Mine, Zhuge Shangyu Ilmenite Mine, Luxing Titanium, and Qinjiazhuang Ilmenite Mine. It is also involved in the trading of coarse iron powder, spodumene, semi-coke, and blended coal; and wind power generation. The company was formerly known as China Zhongsheng Resources Holdings Limited and changed its name to Add New Energy Investment Holdings Group Limited in July 2016. Add New Energy Investment Holdings Group Limited was incorporated in 2011 and is headquartered in Yishui, the People's Republic of China.

How the Company Makes Money

The company generates revenue primarily through its investments in renewable energy projects. This includes income from the sale of electricity generated by its solar and wind farms, as well as potential returns from selling these projects to other investors or utility companies. Additionally, Add New Energy Investment Holdings Group Ltd. may engage in joint ventures and partnerships with other firms in the energy sector to enhance its project portfolio and share in the revenue generated. Government incentives and subsidies for renewable energy projects also play a significant role in boosting the company's earnings.

Add New Energy Investment Holdings Group Ltd. Financial Statement Overview

Summary

The company has shown improved profitability metrics, but significant revenue decline and negative cash flow highlight potential operational and liquidity risks. The balance sheet is relatively strong, but increased leverage could introduce financial risk if cash flow issues persist.

Income Statement

The company has shown a significant improvement in net income from 2023 to 2024, with a net profit margin of 21.88% in 2024, up from 4.00% in 2023. However, revenue has decreased sharply by 77.68% over the same period, indicating potential challenges in maintaining sales volume. The gross profit margin also dropped from 11.20% in 2023 to 4.46% in 2024, suggesting increased cost pressures or pricing challenges.

Balance Sheet

The company's debt-to-equity ratio increased from 0.06 in 2023 to 0.49 in 2024, indicating a higher reliance on debt financing. However, the equity ratio remains strong at 53.73% in 2024, reflecting a solid equity base. Return on equity improved to 11.31% in 2024 from 10.27% in 2023, showing better profitability relative to shareholder equity.

Cash Flow

The cash flow situation is concerning, with a negative free cash flow of -243.07 million in 2024, worsening from -52.79 million in 2023. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations relative to its net income. This could pose liquidity challenges if not addressed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.74M	282.09M	1.26B	1.87B	1.63B	965.98M
Gross Profit	4.66M	12.57M	141.46M	145.10M	29.61M	78.23M
EBITDA	-3.39M	-26.75M	84.86M	101.16M	-9.96M	47.60M
Net Income	74.51M	61.72M	50.52M	57.63M	-30.06M	60.70M
Balance Sheet
Total Assets	1.03B	1.02B	869.30M	746.04M	705.97M	662.51M
Cash, Cash Equivalents and Short-Term Investments	69.91M	80.00M	146.13M	124.67M	191.29M	124.40M
Total Debt	374.62M	268.00M	31.87M	70.78M	181.46M	191.42M
Total Liabilities	490.96M	470.14M	377.42M	392.06M	418.76M	334.89M
Stockholders Equity	544.04M	545.84M	491.88M	353.98M	287.21M	327.62M
Cash Flow
Free Cash Flow	-141.25M	-243.07M	-52.79M	60.52M	77.15M	-14.26M
Operating Cash Flow	-47.01M	-72.02M	53.34M	212.30M	83.47M	21.13M
Investing Cash Flow	-61.64M	-141.41M	-112.44M	-178.18M	4.91M	-11.90M
Financing Cash Flow	114.63M	147.27M	80.67M	-103.48M	-20.89M	27.52M

Add New Energy Investment Holdings Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2623, the sentiment is Positive. The current price of 4.68 is below the 20-day moving average (MA) of 4.79, above the 50-day MA of 3.62, and above the 200-day MA of 1.30, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 53.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2623.

Add New Energy Investment Holdings Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2623	66 Neutral	HK$1.64B	19.69	14.56%	―	-70.82%	5182.22%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
1091	51 Neutral	HK$2.57B	-4.46	-14.35%	―	-31.35%	-71.37%
1370	51 Neutral	HK$580.54M	-1.71	-41.19%	―	-6.51%	41.00%
2237	44 Neutral	HK$560.00M	-63.64	-1.88%	―	-23.72%	-196.49%
6128	38 Underperform	HK$222.15M	-1.09	-23.14%	―	-27.07%	47.86%

Add New Energy Investment Holdings Group Ltd. Corporate Events

Add New Energy Announces Delay in Dispatch of Cash Offer Document

Add New Energy Investment Holdings Group Ltd. has announced a delay in the dispatch of a composite document related to an unconditional mandatory general cash offer by Somerley Capital Limited on behalf of Prominence Investment Holding Company Limited. The delay is due to the need for additional time to prepare and finalize the document’s content, including financial information and advice letters. The new dispatch date is set on or before December 18, 2025. This delay may impact stakeholders as they are advised to exercise caution and seek professional advice when dealing with the company’s securities.

Prominence Investment Acquires Majority Stake in Add New Energy

Add New Energy Investment Holdings Group Ltd. has announced a significant transaction involving the acquisition of its shares by Prominence Investment Holding Company Limited. This acquisition, which involves the purchase of approximately 55.66% of the company’s issued share capital, has triggered an unconditional mandatory general cash offer for the remaining shares, priced slightly higher than the initial purchase price. The move marks a strategic shift in ownership and could impact the company’s market positioning and stakeholder interests.

Add New Energy Announces Trading Halt Amid Pending Announcement

Add New Energy Investment Holdings Group Ltd. has announced a trading halt on its shares on the Hong Kong Stock Exchange as of October 16, 2025. This suspension is pending the release of an announcement related to takeovers, mergers, and share buy-backs, which contains inside information. The halt indicates potential significant changes or developments within the company that could impact its operations and market positioning.