Chongqing Machinery & Electric Co. Ltd. Class H (HK:2722)
:2722
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Chongqing Machinery & Electric Co. Ltd. Class H
(2722)
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Rating:58Neutral
Price Target:
HK$2.50
▲(33.69% Upside)
Action:DowngradedDate:03/25/26
The score is held back mainly by thin 2025 operating profitability and the sharp increase in leverage, despite improved cash flow. Technical indicators also point to weak near-term momentum. These risks are partially offset by a low P/E and a modest dividend yield.
Positive Factors
Steady revenue growth
Consistent multi-year revenue growth demonstrates durable demand and market traction for the company’s machinery offerings. That trend supports scale economics, underpins future cash generation, and provides a firmer base for operational recovery and investment over the next several quarters.
Negative Factors
Extremely thin operating profitability
An operating margin under 1% implies core operations generate minimal profit, reducing ability to self-fund growth or absorb input cost shocks. Persistently thin operating profitability constrains reinvestment, heightens sensitivity to volume swings, and undermines sustainable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady revenue growth
Consistent multi-year revenue growth demonstrates durable demand and market traction for the company’s machinery offerings. That trend supports scale economics, underpins future cash generation, and provides a firmer base for operational recovery and investment over the next several quarters.
Read all positive factors
Chongqing Machinery & Electric Co. Ltd. Class H (2722) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$10.10B
Dividend Yield2.5%
Average Volume (3M)15.79M
Price to Earnings (P/E)8.0
Beta (1Y)1.01
Revenue Growth11.18%
EPS Growth46.57%
CountryHK
Employees7,880
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.11
Shares Outstanding1,100,187,500
10 Day Avg. Volume18,634,000
30 Day Avg. Volume15,787,047
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)0.67
Price to Sales (P/S)0.61
P/FCF Ratio7.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.37
Revenue Forecast (FY)HK$10.68B
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, el...
Chongqing Machinery & Electric Co. Ltd. Class H Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
58
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.73B | 8.92B | 8.06B | 7.21B | 7.41B |
| Gross Profit | 1.52B | 1.35B | 1.51B | 1.37B | 1.49B |
| EBITDA | 75.11M | 394.12M | 526.78M | 525.89M | 543.76M |
| Net Income | 744.15M | 431.28M | 303.63M | 310.30M | 296.51M |
Balance Sheet | |||||
| Total Assets | 19.96B | 17.62B | 17.49B | 17.22B | 16.74B |
| Cash, Cash Equivalents and Short-Term Investments | 3.17B | 3.32B | 2.65B | 2.70B | 2.18B |
| Total Debt | 5.80B | 2.41B | 4.39B | 2.97B | 2.94B |
| Total Liabilities | 10.65B | 9.03B | 9.25B | 9.20B | 8.92B |
| Stockholders Equity | 8.81B | 8.07B | 7.71B | 7.56B | 7.35B |
Cash Flow | |||||
| Free Cash Flow | 765.32M | 515.68M | -50.80M | 238.45M | 261.58M |
| Operating Cash Flow | 987.95M | 718.30M | 145.76M | 310.20M | 383.75M |
| Investing Cash Flow | -166.33M | 47.80M | 235.32M | 438.25M | 541.66M |
| Financing Cash Flow | -476.32M | -846.11M | -366.54M | -348.01M | -416.20M |
Chongqing Machinery & Electric Co. Ltd. Class H Technical Analysis
Negative
1.87
Price Trends
2.73
Negative
2.39
Positive
2.00
Positive
Market Momentum
-0.11
Positive
42.55
Neutral
26.66
Neutral
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 1.87 is below the 20-day moving average (MA) of 2.72, below the 50-day MA of 2.73, and below the 200-day MA of 2.00, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 26.66 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$16.38B | 12.66 | 13.39% | 3.23% | 2.87% | 17.03% | |
67 Neutral | HK$52.37B | 12.86 | 15.55% | 1.44% | 34.78% | 98.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | HK$4.00B | 11.70 | 17.97% | 2.25% | 14.32% | -19.44% | |
58 Neutral | HK$10.10B | 7.99 | 8.82% | 2.50% | 11.18% | 46.57% | |
45 Neutral | HK$3.19B | -3.37 | -69.18% | ― | -4.88% | -860.80% | |
41 Neutral | HK$6.37B | -38.12 | -5.68% | ― | 7.11% | 77.53% |
* Industrials Sector Average
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
2.74
1.92
235.78%
HK:0658
China High Speed Transmission Equipment Group Co
1.95
1.11
132.14%
HK:0558
L.K. Technology Holdings Limited
2.93
0.40
15.63%
HK:1133
Harbin Electric Co. Ltd. Class H
23.42
19.74
536.24%
HK:0187
Beijing Jingcheng Machinery Electric Co Ltd Class H
4.55
0.73
19.11%
HK:1286
Impro Precision Industries Limited
8.68
6.58
312.94%
Chongqing Machinery & Electric Co. Ltd. Class H Corporate Events
Chongqing Machinery & Electric Sets 2026–2028 Dividend Framework to Balance Payouts and Growth
Mar 20, 2026
Chongqing Machinery Electric Co., Ltd. has outlined a three-year shareholder dividend return plan for 2026 to 2028, aimed at creating a more scientific and sustainable mechanism for returning profits. The framework is designed to stabilize invest...
Chongqing Machinery & Electric Posts 76.9% Profit Jump on Solid 2025 Revenue Growth
Mar 20, 2026
Chongqing Machinery Electric Co., Ltd. reported solid top-line growth for 2025, with revenue rising 11.9% to RMB10.04 billion and gross profit increasing 3.6% to RMB1.62 billion, reflecting expanding sales but some margin pressure. The group cont...
Chongqing Machinery & Electric to Rotate Auditors Under Municipal Rules
Mar 20, 2026
Chongqing Machinery Electric Co., Ltd. has announced a planned change of auditor driven by Chongqing municipal regulations that cap financial settlement audit engagements for state-owned enterprises at eight consecutive years. ShineWing Certified...
Chongqing Machinery & Electric Declares Final 2025 Dividend for H-Shareholders
Mar 20, 2026
Chongqing Machinery Electric Co., Ltd. has proposed a final ordinary dividend of RMB 0.055 per share for the financial year ended 31 December 2025, subject to shareholder approval on 10 June 2026. The dividend for Hong Kong shareholders will be p...
Chongqing Machinery & Electric Expects 70–75% Profit Jump for 2025
Mar 10, 2026
Chongqing Machinery Electric Co., Ltd. has issued a positive profit alert, saying it expects profit attributable to shareholders for 2025 to rise by about 70% to 75% from 2024. The company attributes the surge mainly to its high horsepower engine...
Chongqing Machinery & Electric Sets March Board Meeting to Approve 2025 Results and Dividend Plan
Mar 5, 2026
Chongqing Machinery Electric Co., Ltd. has scheduled a board meeting in Chongqing on 20 March 2026 to review and approve the audited financial statements and annual report for the year ended 31 December 2025. The board will also consider the publ...
Chongqing Machinery & Electric Sets Line-Up and Roles for Seventh-Term Board
Jan 12, 2026
Chongqing Machinery Electric Co., Ltd. has announced the composition of its seventh-session board of directors and detailed the roles of each director across its key governance committees. The board comprises three executive directors, three non-...
Chongqing Machinery & Electric Consolidates Leadership as Board Elects Yue Xiangjun Chairman
Jan 12, 2026
Chongqing Machinery Electric Co., Ltd. has appointed 49-year-old senior engineer Yue Xiangjun as chairman of its seventh board session, following a nomination from its controlling shareholder and approval at an interim board meeting on 12 January...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.