Xinyi Energy Holdings Limited (3868) AI Stock Analysis

• Market Cap: €9.13B
• Dividend Yield: 4.95%
• Average Volume (3M): 9.29M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.11
• Revenue Growth: -3.06%
• EPS Growth: -24.51%
• Country: HK
• Employees: 414
• Sector: Energy
• Sector Strength: 72
• Industry: Renewable Utilities
• EPS (TTM): 0.05
• Shares Outstanding: 8,376,653,000
• 10 Day Avg. Volume: 15,920,680
• 30 Day Avg. Volume: 9,285,593
• PEG Ratio: -0.83
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.94
• 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: €1.00
• Price Target Upside: -8.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: ―

Xinyi Energy Holdings Limited shows strong financial performance with effective cost management and solid equity, albeit with some cash flow volatility. The stock appears undervalued with an attractive dividend yield, though the technical indicators suggest mixed market sentiment. These factors contribute to a balanced overall stock score.

Xinyi Energy Holdings Limited Business Overview & Revenue Model

Company Description

Xinyi Energy Holdings Limited, an investment holding company, owns, operates, and manages solar farms in the People's Republic of China. The company operates solar farms with an installed capacity of 2,494 megawatts. It sells electricity to the State grid companies. The company was incorporated in 2015 and is based in Wuhu, the People's Republic of China. Xinyi Energy Holdings Limited is a subsidiary of Xinyi Solar Holdings Limited.

How the Company Makes Money

Xinyi Energy Holdings Limited generates revenue primarily through the sale of electricity generated from its solar farms. The company operates under long-term power purchase agreements (PPAs) with utility companies and other large-scale electricity consumers, ensuring a stable and recurring revenue stream. These agreements typically provide a fixed price for the electricity supplied, which helps mitigate exposure to market price fluctuations. Additionally, Xinyi Energy might benefit from governmental incentives and subsidies aimed at promoting renewable energy, enhancing its financial performance. The company's strategic partnerships with technology providers and local governments play a critical role in facilitating the development and expansion of its solar projects, thereby driving revenue growth.

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. Overall, the company is in a strong financial position with opportunities for further optimization.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.60B	2.52B	2.32B	2.30B	1.72B
	Gross Profit
1.70B	1.71B	1.63B	1.68B	1.25B
	EBIT
1.63B	1.65B	1.53B	1.62B	1.20B
	EBITDA
2.30B	2.33B	2.14B	2.20B	1.68B
	Net Income Common Stockholders
841.52M	992.99M	971.45M	1.23B	922.01M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
422.88M	702.95M	1.79B	1.10B	1.31B
	Total Assets
23.06B	21.13B	19.94B	21.20B	17.23B
	Total Debt
8.84B	7.04B	5.65B	5.60B	2.38B
	Net Debt
8.46B	6.39B	3.86B	4.50B	1.07B
	Total Liabilities
9.75B	7.83B	8.18B	8.64B	5.22B
	Stockholders Equity
13.31B	13.30B	11.75B	12.55B	12.01B
Cash Flow		Free Cash Flow
0.00	-1.89B	1.35B	418.04M	642.56M
	Operating Cash Flow
0.00	753.13M	2.90B	1.24B	1.11B
	Investing Cash Flow
0.00	-2.61B	-1.53B	-3.13B	-1.29B
	Financing Cash Flow
0.00	735.33M	-576.36M	1.65B	-202.74M

Xinyi Energy Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.09
• 50DMA: Positive
• 100DMA: Positive
• 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 1.09 is above the 20-day moving average (MA) of 0.99, above the 50-day MA of 0.93, and above the 200-day MA of 0.84, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 67.96 is Neutral, neither overbought nor oversold. The STOCH value of 80.25 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
3868	74 Outperform	€9.13B	10.53		4.95%	-3.06%	-24.51%
Sector *	58 Neutral	$7.56B	3.50	-4.45%	10.15%	0.79%	-49.51%
CWPWF		$484.05M	3.58	9.47%	8.94%	―	―
PVLTF		$353.16M	24.07	1.64%	1.06%	―	―
BJ6		€2.32B	5.38	10.04%	6.67%	―	―
DT7		€1.96B	7.76	10.34%	4.93%	―	―
1250	57 Neutral	HK$3.68B	12.96	2.06%	―	-10.89%	-24.84%

Xinyi Energy Holdings Limited Corporate Events

Xinyi Energy Holdings Announces Final Dividend with Scrip Option for 2024

Xinyi Energy Holdings Limited has announced a final cash dividend of HKD 0.027 per share for the year ended December 31, 2024, with a scrip option available to shareholders. This update includes the dispatch date of share certificates set for July 30, 2025, and outlines key dates for shareholders, such as the ex-dividend date on June 3, 2025, and the record date on June 9, 2025. This announcement reflects the company’s commitment to providing shareholder value while maintaining flexibility in dividend options.

Xinyi Energy Proposes Amendments to Articles of Association

Xinyi Energy Holdings Limited has announced proposed amendments to its Articles of Association to align with the latest legal and regulatory requirements in the British Virgin Islands and Hong Kong, as well as the new electronic dissemination rules under the paperless listing regime effective December 31, 2023. These changes, which include provisions for treasury shares, are subject to shareholder approval at the upcoming annual general meeting and are intended to ensure compliance and improve operational clarity.

Xinyi Energy Announces Change of Auditor from PwC to Ernst & Young

Xinyi Energy Holdings Limited has announced a change in its auditing firm, with PricewaterhouseCoopers (PwC) set to retire following the company’s annual general meeting on May 30, 2025. The decision, driven by an inability to agree on audit fees for the upcoming financial year, has led to the proposal of appointing Ernst & Young as the new auditor, pending shareholder approval. This transition is expected to maintain the company’s compliance with Hong Kong’s financial reporting standards and ensure continued transparency and accountability in its financial practices.

Xinyi Energy Holdings Announces AGM and Key Resolutions for 2025

Xinyi Energy Holdings Limited has announced its annual general meeting scheduled for May 30, 2025, in Hong Kong. Key resolutions to be discussed include the approval of audited financial statements, the declaration of a final dividend, re-election of directors, and the appointment of Ernst & Young as auditors. Additionally, the company seeks authorization to repurchase up to 10% of its issued shares, which could impact its market positioning and shareholder value.

Xinyi Energy Grants 3.5 Million Share Options to Boost Employee Engagement

Xinyi Energy Holdings Limited announced the grant of 3,500,000 share options to its senior management and employees under its Share Option Scheme. The options, aimed at aligning the interests of the grantees with the company and its shareholders, will vest in three tranches over three years, contingent on performance targets. This initiative is designed to incentivize employees and reinforce their commitment to the company’s long-term success.

Xinyi Energy Reports Revenue Growth but Decline in Profit for 2024

Xinyi Energy Holdings Limited reported its financial results for the year ended 31 December 2024, showing a 7% increase in revenue to RMB 2,440.4 million compared to the previous year. However, the profit attributable to equity holders decreased by 12% to RMB 790.9 million, and earnings per share fell by 15.9% to 9.55 RMB cents. The proposed final dividend per share increased slightly to 2.7 HK cents. Despite the revenue growth, the decline in profit and earnings per share indicates challenges in maintaining profitability, potentially impacting investor sentiment and market positioning.

Xinyi Energy Announces Final Dividend with Scrip Option

Xinyi Energy Holdings Limited has announced a final cash dividend of HKD 0.027 per share for the financial year ending December 31, 2024. Shareholders have the option to receive the dividend in cash or convert it into scrip shares, with further details on the conversion price and payment dates to be announced. This announcement reflects the company’s commitment to providing returns to its shareholders and may impact its market positioning by enhancing investor confidence.

Xinyi Energy Holdings Limited Announces Upcoming Board Meeting for Annual Results

Xinyi Energy Holdings Limited has announced that its board of directors will meet on February 28, 2025, to discuss and approve the release of the company’s annual results for the year ending December 31, 2024. The meeting will also consider recommending a final dividend for shareholders. This announcement signifies the company’s ongoing commitment to transparency and shareholder returns, potentially impacting its market performance and stakeholder confidence.