Chongqing Machinery & Electric Co. Ltd. Class H (2722) AI Stock Analysis

• Market Cap: €6.41B
• Dividend Yield: 2.66%
• Average Volume (3M): 15.79M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.61
• Revenue Growth: 11.18%
• EPS Growth: 46.57%
• Country: HK
• Employees: 7,880
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.12
• Shares Outstanding: 1,100,187,500
• 10 Day Avg. Volume: 18,634,000
• 30 Day Avg. Volume: 15,787,047
• PEG Ratio: 0.12
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 5.17
• 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: €2.87
• Price Target Upside: 55.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: HK$2.00 ▲(8.11% Upside)

Chongqing Machinery & Electric Co. Ltd. Class H has a solid financial performance with strong revenue growth and improved profitability, which is the most significant factor in its score. The technical analysis indicates a bearish trend, which slightly offsets the financial strengths. The valuation is reasonable, with a decent dividend yield, making the stock attractive for income investors. The absence of earnings call data and corporate events does not impact the score.

Chongqing Machinery & Electric Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Chongqing Machinery & Electric Co., Ltd., together with its subsidiaries, designs, manufactures, and sells clean energy equipment and high-end smart manufacturing equipment. It manufactures and sells engines, hydroelectric generation equipment, electrical wires and cables, general machinery, machinery tools, high-voltage transformers, and other products. The company also designs, manufactures, and sells vehicle parts and components; industrial robots, intelligent equipment, etc.; processes electronic products; develops, produces, and leases laser, machinery, and testing equipment; turbines, governors, and auxiliary devices; gear processing machine tools and lathes; automation, intelligent equipment, and accessories; provides cotton picking services and maintains cotton machinery and spare parts; cutting tool; casting and forging of non-ferrous metal smelting and special metal smelting; electrical porcelain; agricultural machinery and accessories, special machine tools, spare parts, and special tooling; precision screw; multi-purpose CNC machine tools, roll grinders, and deep hole boring machines. In addition, it leases properties; engages in turbo mechanical product testing, equipment, and system maintenance and transformation; sewage collection, treatment, and operation management BOT business; other trade business; trades in machinery and raw materials; fan coolers; evaporative cooling, water-cooled, and air-cooled chillers; manufactures wind-power equipment, PPR\PPC tubular product, and gas compressors and components; sells network, environmental, and gas products; design and manufactures industrial pumps and parts, and pressure vessels; mechanical and electrical equipment technology; and sells steel, as well as provides loans. The company was founded in 2007 and is headquartered in Chongqing, the People's Republic of China. Chongqing Machinery & Electric Co., Ltd. is a subsidiary of Chongqing Machinery and Electronics Holding (Group) Co., Ltd.

How the Company Makes Money

Chongqing Machinery & Electric Co. Ltd. generates revenue through multiple streams including the sale of machinery and electrical equipment, customized industrial solutions, and after-sales services. A significant portion of its earnings comes from contracts with government sectors and large enterprises for infrastructure projects, particularly in power generation and transportation. The company also benefits from strategic partnerships with global firms that enhance its technological capabilities and market reach. Additionally, the growing demand for automation and renewable energy solutions has opened new avenues for revenue, contributing to its overall financial performance.

Chongqing Machinery & Electric Co. Ltd. Class H Financial Statement Overview

Summary

Chongqing Machinery & Electric Co. Ltd. Class H demonstrates strong revenue growth and improved profitability, with a notable increase in net profit margins. The balance sheet shows reduced leverage, and cash flows have strengthened significantly. However, the company should focus on stabilizing its gross profit margin and enhancing its ability to convert net income into free cash flow.

Income Statement

Chongqing Machinery & Electric Co. Ltd. Class H has shown a consistent revenue growth, with a 10.68% increase from 2023 to 2024. The gross profit margin for 2024 is 15.15%, and the net profit margin improved to 4.83% from 3.77% in 2023, indicating enhanced profitability. However, the gross profit and EBITDA margins have slightly declined, which could be an area of concern.

Balance Sheet

The company's balance sheet reflects a solid equity base with an equity ratio of 45.81% in 2024. The debt-to-equity ratio has decreased to 0.30, signifying lower leverage. However, there is a notable decrease in gross profit over the last year which could impact future equity growth.

Cash Flow

Operating cash flow has significantly improved, with a 392.63% increase from 2023 to 2024. Free cash flow has also turned positive, indicating better cash management. Nevertheless, the free cash flow to net income ratio is moderate, suggesting room for improvement in cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.35B	8.92B	8.06B	7.21B	7.41B	6.37B
Gross Profit	1.40B	1.35B	1.51B	1.37B	1.49B	1.31B
EBITDA	441.51M	394.12M	526.78M	525.89M	543.76M	222.81M
Net Income	577.15M	431.28M	303.63M	310.30M	296.51M	182.97M
Balance Sheet
Total Assets	18.83B	17.62B	17.49B	17.22B	16.74B	16.62B
Cash, Cash Equivalents and Short-Term Investments	2.42B	3.32B	2.65B	2.70B	2.18B	1.74B
Total Debt	3.95B	2.41B	4.39B	2.97B	2.94B	4.04B
Total Liabilities	9.95B	9.03B	9.25B	9.20B	8.92B	9.15B
Stockholders Equity	8.37B	8.07B	7.71B	7.56B	7.35B	7.02B
Cash Flow
Free Cash Flow	259.18M	515.68M	-50.80M	238.45M	261.58M	70.20M
Operating Cash Flow	453.69M	718.30M	145.76M	310.20M	383.75M	171.52M
Investing Cash Flow	319.92M	47.80M	235.32M	438.25M	541.66M	217.24M
Financing Cash Flow	-348.55M	-846.11M	-366.54M	―	-416.20M	-577.48M

Chongqing Machinery & Electric Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.85
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2722, the sentiment is Negative. The current price of 1.85 is below the 20-day moving average (MA) of 2.07, below the 50-day MA of 1.93, and above the 200-day MA of 1.36, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 42.75 is Neutral, neither overbought nor oversold. The STOCH value of 6.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2722.

Chongqing Machinery & Electric Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1133	77 Outperform	HK$29.94B	12.53	15.06%	1.72%	34.78%	98.79%
1286	76 Outperform	€9.36B	13.64	14.15%	3.19%	2.87%	17.03%
2722	65 Neutral	€6.41B	10.31	7.29%	2.66%	11.18%	46.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0558	60 Neutral	HK$4.28B	12.24	18.09%	2.39%	-0.21%	-27.21%
0187	56 Neutral	HK$6.55B	-582.50	-0.43%	―	7.11%	77.53%
0658	45 Neutral	$2.91B	-0.44	-69.18%	―	-4.88%	-860.80%

Chongqing Machinery & Electric Co. Ltd. Class H Corporate Events

Chongqing Machinery & Electric Co. Strengthens Investor Relations and Projects Robust Growth

Chongqing Machinery & Electric Co., Ltd. recently conducted reverse roadshow investor engagement activities to enhance communication with investors. These activities provided insights into the company’s operations and future outlook, highlighting its steady growth trajectory and progress in major projects. The company expects to achieve solid year-on-year growth in operating revenue and total profit by the end of 2025. Key developments include advancements in nuclear power pump technology, mass production of wind turbine blades, and upgrades in motor-specific electromagnetic wire production. Subsidiaries like Chongqing Cummins and Chongqing Hitachi Energy are also projected to perform well, with significant growth in emerging markets and infrastructure investments.

The most recent analyst rating on (HK:2722) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Chongqing Machinery & Electric Co. Ltd. Class H stock, see the HK:2722 Stock Forecast page.

Chongqing Machinery & Electric Co., Ltd. Establishes Audit Committee to Enhance Governance

Chongqing Machinery & Electric Co., Ltd. has announced the establishment of an Audit Committee as part of its board of directors. This committee will consist of three or more non-executive directors, with a majority being independent non-executive directors. The committee is tasked with overseeing financial management and ensuring compliance with regulatory requirements, which is expected to enhance the company’s governance and operational transparency.

The most recent analyst rating on (HK:2722) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Chongqing Machinery & Electric Co. Ltd. Class H stock, see the HK:2722 Stock Forecast page.

Chongqing Machinery & Electric Announces Interim Dividend for 2025

Chongqing Machinery & Electric Co., Ltd. has announced an interim dividend of RMB 0.01 per share for the six months ending June 30, 2025, with a corresponding payment in Hong Kong dollars. The dividend reflects the company’s ongoing commitment to returning value to its shareholders. The ex-dividend date is set for October 31, 2025, with the payment date scheduled for November 25, 2025. This announcement may impact the company’s financial positioning and shareholder satisfaction, as it provides insights into the company’s profitability and financial health.

The most recent analyst rating on (HK:2722) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Chongqing Machinery & Electric Co. Ltd. Class H stock, see the HK:2722 Stock Forecast page.

Chongqing Machinery & Electric Co. Ltd. Approves Key Resolutions at EGM

Chongqing Machinery & Electric Co., Ltd. announced that all resolutions proposed at their Extraordinary General Meeting on October 28, 2025, were approved by shareholders. The resolutions included a profit distribution plan, amendments to company procedures and director remuneration, and changes to the Articles of Association, including the abolition of the Supervisory Committee. These approvals indicate a strategic shift in company governance and financial management, potentially impacting stakeholders by streamlining operations and enhancing shareholder value.

The most recent analyst rating on (HK:2722) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Chongqing Machinery & Electric Co. Ltd. Class H stock, see the HK:2722 Stock Forecast page.

Chongqing Machinery & Electric Co. Ltd. Announces Extraordinary General Meeting to Discuss Key Resolutions

Chongqing Machinery & Electric Co., Ltd. has announced an extraordinary general meeting scheduled for October 28, 2025, to discuss several key resolutions. These include the approval of a profit distribution plan for the first half of 2025, amendments to the company’s procedural rules and directors’ remuneration, and significant changes to the Articles of Association, including the abolition of the Supervisory Committee. These resolutions are expected to impact the company’s governance structure and operational strategies, potentially influencing its market positioning and stakeholder relations.

Chongqing Machinery & Electric Co., Ltd. Announces Director Resignation

Chongqing Machinery & Electric Co., Ltd. announced the resignation of Mr. Dou Bo from his position as a non-executive director and member of the audit and risk management committee due to work arrangements. His departure does not affect the board’s statutory requirements or operations. The company expressed gratitude for his contributions and plans to elect a new non-executive director promptly.

Chongqing Machinery & Electric Co. Ltd. Announces New Board of Directors

Chongqing Machinery & Electric Co., Ltd. has announced the list of directors for the seventh session of its board, detailing the roles and functions of each member. The board comprises executive, non-executive, and independent non-executive directors, with specific members assigned to four established committees: Strategy, Audit and Risk Management, Remuneration, and Nomination. This announcement reflects the company’s structured governance and strategic planning efforts, potentially impacting its operational efficiency and stakeholder confidence.

Chongqing Machinery & Electric Co. Announces Shareholding Change

Chongqing Machinery & Electric Co., Ltd., a joint stock limited company incorporated in China, announced a change in its shareholding structure. The controlling shareholder, CQMEHG, has entered into an agreement to acquire 6.30% of the company’s shares from CCEG, increasing its holding to 61.04%. This transaction results in CCEG no longer holding any shares, while Yufu Holding remains the indirect controlling shareholder and Chongqing SASAC the ultimate controlling shareholder.