Xinyi Energy Holdings Limited (3868) AI Stock Analysis

• Market Cap: HK$9.97B
• Dividend Yield: 4.83%
• Average Volume (3M): 21.64M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.05
• 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: 64 Neutral
• Price Target: HK$1.00 ▼(-13.04% Downside)

The score is anchored by mixed financial performance: strong profitability and revenue growth are offset by margin compression, rising leverage, and two years of negative free cash flow. Valuation is supportive (low P/E and solid yield), but technical indicators point to weaker near-term momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term stability and expansion.

Profitability

High profitability reflects efficient operations and competitive advantage, which can sustain financial health and support future investments.

Strategic Asset Management

Strategic asset disposal enhances operational efficiency and asset management, potentially improving long-term returns and focus on core assets.

Negative Factors

Margin Compression

Margin compression indicates rising costs or pricing pressures, which can limit profitability and affect long-term financial performance.

Rising Leverage

Increased leverage can strain financial flexibility and increase risk, potentially affecting the company's ability to fund growth sustainably.

Negative Free Cash Flow

Negative free cash flow suggests high investment needs and reliance on external funding, which may impact financial stability and growth prospects.

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: Positive
• 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 Positive. The current price of 1.15 is above the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.21, and above the 200-day MA of 1.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.08 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$18.96B	5.60	9.87%	6.71%	2.90%	1.23%
1250	69 Neutral	HK$4.11B	―	―	―	―	―
0686	68 Neutral	HK$2.49B	10.21	4.37%	8.85%	24.56%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
0182	65 Neutral	HK$2.52B	4.07	6.80%	10.94%	-16.17%	-31.65%
3868	64 Neutral	HK$9.97B	11.10	―	4.83%	3.06%	6.04%
1798	60 Neutral	HK$14.91B	7.38	9.90%	6.26%	2.47%	-6.46%

Xinyi Energy Holdings Limited Corporate Events

Xinyi Group Units Reallocate Stake in Jinzai Wind Power via Connected Transaction

Xinyi Energy Holdings, together with related Xinyi group entities Xinyi Glass, Xinyi Solar and Xinyi Electric Storage, has entered into an equity transfer agreement under which XYE (Fanchang) will acquire an equity interest in Jinzai Wind Power from XYG (Wuhu) and XES Anhui Power. The transaction, executed after market close on 23 December 2025, formalises an intra‑group reallocation of ownership in the wind power asset within the Xinyi group’s network of energy businesses.
Under Hong Kong’s Listing Rules and the GEM Listing Rules, the deal is classified as a connected transaction for Xinyi Glass, Xinyi Energy, Xinyi Solar and Xinyi Electric Storage because of their shared controlling shareholders and cross-holdings. As the relevant percentage ratios for both the acquisition and disposal fall between 0.1 per cent and 5 per cent, the transaction will be subject only to reporting and announcement requirements and is exempt from circular and independent shareholders’ approval, streamlining execution while still providing disclosure to investors about the realignment of the group’s wind power interests.

The most recent analyst rating on (HK:3868) stock is a Hold with a HK$1.30 price target. To see the full list of analyst forecasts on Xinyi Energy Holdings Limited stock, see the HK:3868 Stock Forecast page.

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.

The most recent analyst rating on (HK:3868) stock is a Hold with a HK$1.30 price target. To see the full list of analyst forecasts on Xinyi Energy Holdings Limited stock, see the HK:3868 Stock Forecast page.

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.

The most recent analyst rating on (HK:3868) stock is a Hold with a HK$1.30 price target. To see the full list of analyst forecasts on Xinyi Energy Holdings Limited stock, see the HK:3868 Stock Forecast page.