Xinyi Energy Holdings Limited (3868) AI Stock Analysis

• Market Cap: HK$9.80B
• Dividend Yield: 4.87%
• Average Volume (3M): 21.64M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 1.04
• Revenue Growth: 3.06%
• EPS Growth: 6.04%
• Country: HK
• Employees: 414
• Sector: Energy
• Sector Strength: 52
• Industry: Renewable Utilities
• EPS (TTM): 0.06
• Shares Outstanding: 8,519,712,000
• 10 Day Avg. Volume: 20,969,239
• 30 Day Avg. Volume: 21,638,263
• PEG Ratio: -0.34
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 2.52
• P/FCF Ratio: -4.57
• 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: 66 Neutral
• Price Target: HK$1.00 ▼(-13.04% Downside)

The overall stock score is primarily influenced by strong financial performance and attractive valuation. However, bearish technical indicators suggest caution. The company needs to address cash flow challenges to improve its financial health.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Profitability

High profit margins reflect efficient operations and pricing power, crucial for sustaining competitive advantage and reinvestment.

Strategic Partnerships

Partnerships enhance market access and project expansion, providing a durable competitive edge in the renewable energy sector.

Negative Factors

Margin Pressure

Declining margins may signal rising costs or competitive pressures, which could erode profitability if not addressed.

Negative Free Cash Flow

Negative free cash flow can limit the company's ability to invest in growth opportunities and meet financial obligations.

Equity Disposal Impact

Equity disposal may affect control and future earnings potential, impacting strategic direction and financial performance.

Xinyi Energy Holdings Limited Business Overview & Revenue Model

Company Description

Xinyi Energy Holdings Limited (3868) is a leading player in the renewable energy sector, primarily engaged in the development, investment, and operation of solar energy projects. The company focuses on the construction and management of solar power plants, contributing to the sustainable energy landscape. Xinyi Energy aims to leverage its expertise in solar energy to support global efforts in reducing carbon emissions and promoting clean energy solutions.

How the Company Makes Money

Xinyi Energy generates revenue primarily through the sale of electricity generated from its solar power plants. The company enters into Power Purchase Agreements (PPAs) with electricity grid operators and commercial customers, ensuring a steady income stream from its renewable energy output. Additionally, Xinyi Energy may benefit from government incentives and subsidies aimed at promoting renewable energy, which can enhance its profitability. The company's strategic partnerships with local governments and energy agencies further bolster its market position, allowing it to expand its project portfolio and optimize operational efficiencies.

Xinyi Energy Holdings Limited Financial Statement Overview

Summary

Xinyi Energy Holdings Limited demonstrates robust financial health with strong profitability and stable growth. The income statement highlights effective revenue and cost management, while the balance sheet reflects a solid equity foundation despite moderate leverage. Cash flow management requires attention to ensure consistent free cash flow generation.

Income Statement

Xinyi Energy Holdings Limited shows a strong financial performance with consistent revenue growth over the years. The gross profit margin remains robust, indicating effective cost management. The company maintains a healthy EBIT and EBITDA margin, reflecting operational efficiency. However, there is a slight decline in net profit margin due to increased expenses or other factors impacting net income.

Balance Sheet

The company maintains a strong equity base, as indicated by a good equity ratio. However, the debt-to-equity ratio suggests moderate leverage, which could pose risks if not managed properly. Return on equity is strong, showcasing effective utilization of shareholder funds. The overall balance sheet indicates stability with a well-managed asset base.

Cash Flow

Xinyi Energy Holdings Limited shows fluctuating free cash flow, which could indicate volatility in its capital expenditures or operational cash flow management. The operating cash flow to net income ratio suggests efficient cash generation relative to its reported profits. However, the company should focus on stabilizing free cash flow to ensure better financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.70B	2.60B	2.52B	2.32B	2.30B	1.72B
Gross Profit	1.74B	1.70B	1.71B	1.63B	1.68B	1.25B
EBITDA	2.39B	2.30B	2.33B	2.14B	2.20B	1.68B
Net Income	939.96M	841.52M	992.99M	971.45M	1.23B	922.01M
Balance Sheet
Total Assets	24.22B	23.06B	21.13B	19.94B	21.20B	17.23B
Cash, Cash Equivalents and Short-Term Investments	452.30M	422.88M	702.95M	1.79B	1.10B	1.31B
Total Debt	9.06B	8.84B	7.04B	5.65B	5.60B	2.38B
Total Liabilities	10.26B	9.75B	7.83B	8.18B	8.64B	5.22B
Stockholders Equity	13.97B	13.31B	13.30B	11.75B	12.55B	12.01B
Cash Flow
Free Cash Flow	-798.68M	-1.43B	-1.89B	1.35B	418.04M	642.56M
Operating Cash Flow	1.19B	1.02B	753.13M	2.90B	1.24B	1.11B
Investing Cash Flow	-1.98B	-2.50B	-2.61B	-1.53B	-3.13B	-1.29B
Financing Cash Flow	731.09M	1.18B	735.33M	-576.36M	1.65B	-202.74M

Xinyi Energy Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3868, the sentiment is Neutral. The current price of 1.15 is below the 20-day moving average (MA) of 1.16, below the 50-day MA of 1.24, and above the 200-day MA of 1.13, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 83.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3868.

Xinyi Energy Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0579	75 Outperform	HK$19.21B	5.72	9.87%	6.71%	2.90%	1.23%
1250	69 Neutral	HK$4.38B	13.65	―	―	―	―
0686	68 Neutral	HK$2.49B	10.30	4.37%	8.85%	24.56%	―
3868	66 Neutral	HK$9.80B	11.01	―	4.87%	3.06%	6.04%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0182	65 Neutral	HK$2.48B	4.01	6.80%	10.94%	-16.17%	-31.65%
1798	60 Neutral	HK$15.27B	7.60	9.90%	6.29%	2.47%	-6.46%

Xinyi Energy Holdings Limited Corporate Events

Xinyi Energy and Xinyi Solar Announce Equity Disposal in Tianjin Solar Venture

Xinyi Energy Holdings Limited and Xinyi Solar Holdings Limited have jointly announced the disposal of 51% equity interest in Xinyi Solar (Tianjin), leveraging qualitative and quantitative factors to evaluate the transaction. This move supports operational efficiency in their Tianjin solar farm while maintaining strategic control over dividends and service revenue, with potential implications for the stakeholders, including enhanced asset management and access to state-owned capabilities through the purchaser partners.

Xinyi Energy and Xinyi Solar Announce Equity Disposal

Xinyi Energy Holdings Limited and Xinyi Solar Holdings Limited have announced a discloseable transaction involving the disposal of a 51% equity interest in Xinyi Solar (Tianjin). The transaction is valued at RMB514.59 million and will result in Xinyi Solar (Tianjin) ceasing to be a subsidiary of Xinyi Energy and a non-wholly owned subsidiary of Xinyi Solar. This move is subject to the notification and announcement requirements under the Listing Rules and will impact the accounting treatment of the remaining interests in Xinyi Solar (Tianjin), which will now be accounted for using the equity method.