tiprankstipranks
Trending News
More News >
China Energy Engineering Corp. Ltd. Class H (HK:3996)
:3996
Advertisement

China Energy Engineering Corp. Ltd. Class H (3996) AI Stock Analysis

Compare
1 Followers

Top Page

HK:3996

China Energy Engineering Corp. Ltd. Class H

(Frankfurt:3996)

Rating:75Outperform
Price Target:
HK$1.50
▲(3.45%Upside)
The stock's positive market momentum and attractive valuation are its strongest aspects, offsetting concerns about financial leverage and cash flow issues. The absence of recent earnings call data or significant corporate events did not impact the score.

China Energy Engineering Corp. Ltd. Class H (3996) vs. iShares MSCI Hong Kong ETF (EWH)

China Energy Engineering Corp. Ltd. Class H Business Overview & Revenue Model

Company DescriptionChina Energy Engineering Corporation Limited provides solutions and services in energy power and infrastructure sectors in the People's Republic of China and internationally. The company operates through five segments: Survey, Design and Consulting Services; Construction and Contracting; Industrial Manufacturing; Investment and Operation; and Other Businesses. The company's Survey, Design and Consulting Services segment offers survey and design services for domestic and foreign thermal power, hydropower, nuclear power, wind power, solar power generation, and power grid projects; and consulting services for power industry policies, as well as provides power project testing, evaluation, and supervision services. Its Construction and Contracting segment offers general contracting, engineering construction, and project operation and maintenance services to domestic and foreign traditional energy, new energy, smart energy, water conservancy, ecological environmental protection, transportation, municipal administration, housing construction, and other projects. The company's Industrial Manufacturing segment designs, manufactures, and sells power station auxiliary equipment, power grid equipment, steel structures, energy saving and environmental protection equipment, and other equipment related to the power industry; and civil explosives and cement, as well as provides blasting services. Its Investment and Operation Segment invests in and operates traditional energy, new energy, smart energy, water conservancy, ecological environmental protection, and transportation projects; offers financial services; and develops real estate properties. The company's Other Businesses Segment provides logistics trade, leasing and business, software and information, and other services. The company was incorporated in 2014 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyChina Energy Engineering Corp. Ltd. generates revenue through multiple streams, primarily from its core business of engineering, procurement, and construction (EPC) services for power projects. This involves designing and building power plants and energy infrastructure, where the company earns fees and contracts for completed projects. Additionally, the company generates income from equipment manufacturing and sales, providing specialized machinery and technology for energy generation. It also offers operation and maintenance services for completed projects, ensuring ongoing revenue through service agreements. The company's earnings are bolstered by its strategic partnerships and joint ventures, both domestically and internationally, which expand its market reach and project portfolio. Furthermore, its involvement in renewable energy projects aligns with global trends towards clean energy, driving additional growth opportunities.

China Energy Engineering Corp. Ltd. Class H Financial Statement Overview

Summary
The company shows strong revenue growth and moderate profitability. However, high leverage and negative free cash flow could pose financial risks. Improvement in cash flow management and operational efficiency is needed to enhance financial health.
Income Statement
75
Positive
The company has shown consistent revenue growth over the years, with a notable increase from 2022 to 2023 by 7.7% and from 2023 to 2024 by 7.6%. The gross profit margin stands at approximately 12.3% for 2024, indicating moderate profitability in the construction industry. Net profit margin improved slightly to 1.9% in 2024. However, the EBIT margin remains relatively low at 3.4%, suggesting room for operational efficiency improvements.
Balance Sheet
70
Positive
The company has a high debt-to-equity ratio of 2.44, indicating significant leverage, which could pose financial risks if not managed well. Return on Equity (ROE) is modest at 7.2%, reflecting moderate shareholder returns. The equity ratio is 13.4%, showing a low proportion of equity financing compared to total assets, typical in the construction industry but warrants caution.
Cash Flow
60
Neutral
The company has struggled with negative free cash flow, with a notable decline in 2024 to -34.5 billion, largely due to significant capital expenditures. The operating cash flow to net income ratio is 1.31, indicating decent cash generation relative to profitability. However, the free cash flow to net income ratio is negative, highlighting ongoing challenges in cash flow management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue436.71B406.03B366.39B322.32B270.33B
Gross Profit53.90B51.31B45.50B42.41B36.10B
EBITDA27.15B26.89B25.07B21.07B21.43B
Net Income8.40B7.99B7.82B9.60B8.69B
Balance Sheet
Total Assets869.00B783.16B664.35B528.86B476.05B
Cash, Cash Equivalents and Short-Term Investments91.58B77.71B78.39B61.49B53.56B
Total Debt290.34B244.19B201.78B124.10B118.05B
Total Liabilities663.18B594.90B496.86B379.13B338.12B
Stockholders Equity116.01B110.46B101.89B94.20B99.40B
Cash Flow
Free Cash Flow-34.49B-21.64B-12.05B-5.20B-8.47B
Operating Cash Flow11.03B9.49B7.93B8.84B6.49B
Investing Cash Flow-50.34B-41.53B-49.03B-18.65B-20.19B
Financing Cash Flow53.36B36.05B52.32B12.32B22.14B

China Energy Engineering Corp. Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.45
Price Trends
50DMA
1.10
Positive
100DMA
1.04
Positive
200DMA
1.01
Positive
Market Momentum
MACD
0.12
Negative
RSI
66.40
Neutral
STOCH
38.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3996, the sentiment is Positive. The current price of 1.45 is above the 20-day moving average (MA) of 1.23, above the 50-day MA of 1.10, and above the 200-day MA of 1.01, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 66.40 is Neutral, neither overbought nor oversold. The STOCH value of 38.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3996.

China Energy Engineering Corp. Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$86.80B6.578.19%2.91%4.81%1.42%
61
Neutral
C$6.54B7.713.45%2.57%6.48%-23.10%
$8.02B6.5914.62%2.77%
$19.33B3.408.83%10.29%
€7.40B5.335.56%1.75%
€2.98B9.087.81%7.01%
€1.69B35.447.03%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.45
0.65
82.16%
CCOHF
China State Construction International Holdings
1.57
0.25
18.94%
CRWOF
China Railway Group
0.50
0.05
11.11%
DE:6MT
Metallurgical Corporation of China Ltd. Class H
0.18
0.03
20.00%
DE:1NS
SINOPEC Engineering (Group) Co., Ltd. Class H
0.66
0.14
26.92%
DE:4AI
China Aluminum International Engineering Corporation Limited Class H
0.28
0.10
55.56%

China Energy Engineering Corp. Ltd. Class H Corporate Events

China Energy Engineering Corp. Reports Growth in Q2 2025 Contract Values
Jul 15, 2025

In the second quarter of 2025, China Energy Engineering Corporation Limited reported a total value of newly-signed contracts amounting to 775.357 billion RMB, marking a 4.98% increase over the same period last year. The company saw significant growth in urban construction and survey, design, and consulting sectors, while facing a decline in industrial manufacturing. The domestic market accounted for 575.877 billion RMB of the contracts, with a modest increase of 2.25%, whereas overseas contracts surged by 13.74%, totaling 199.479 billion RMB. This performance underscores the company’s strategic focus on diversifying its energy portfolio and expanding its international presence.

China Energy Engineering Corp. Announces Board and Executive Changes
Jul 14, 2025

China Energy Engineering Corporation Limited has announced changes in its board committee and the appointment of a new chief accountant. Mr. Ni Zhen has been appointed as the chairman of the Nomination Committee, while Mr. Chen Yong has been appointed as the chief accountant. These changes are part of the company’s efforts to ensure compliance with the relevant requirements of the Hong Kong Stock Exchange and to strengthen its financial management capabilities.

China Energy Engineering Corp. Announces Board Composition
Jul 14, 2025

China Energy Engineering Corporation Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement may impact the company’s governance structure and strategic decision-making, potentially influencing its market positioning and stakeholder relations.

Leadership Transition at China Energy Engineering Corp.
Jun 30, 2025

China Energy Engineering Corporation Limited announced the resignation of Mr. Song Hailiang from his roles as chairman of the Board, executive Director, and other key positions due to work adjustments, effective June 30, 2025. Mr. Song’s departure will not disrupt the Board’s operations, as Mr. Ni Zhen will temporarily assume the chairman’s responsibilities until a new chairman is elected. The company is actively seeking suitable candidates to fill the resulting vacancies to ensure compliance with listing requirements.

China Energy Engineering Corp Announces Board Composition and Roles
Jun 30, 2025

China Energy Engineering Corporation Limited has announced the composition of its board of directors and the roles they will serve. The board includes a mix of executive, non-executive, and independent non-executive directors, with various members chairing and participating in committees such as strategy, nomination, remuneration and assessment, audit, and supervisory. This announcement highlights the company’s governance structure, which is crucial for strategic decision-making and maintaining transparency with stakeholders.

China Energy Engineering Corp. Announces Board Composition and Roles
Jun 24, 2025

China Energy Engineering Corporation Limited has announced the composition of its board of directors, highlighting the roles and functions of its executive, non-executive, and independent non-executive directors. This announcement provides clarity on the leadership structure and committee memberships, which could impact the company’s strategic direction and governance, potentially influencing stakeholder confidence and operational efficiency.

China Energy Engineering Updates Final Dividend Details for 2024
Jun 24, 2025

China Energy Engineering Corporation Limited announced an update on its final cash dividend for the year ended December 31, 2024. The dividend will be paid in Hong Kong dollars at a rate of HKD 0.2867 per 10 shares, with an exchange rate of RMB 1 to HKD 1.094374. The announcement also details the withholding tax rates applicable to different categories of shareholders, which range from 10% to 20% based on the shareholder’s country of domicile and its tax treaty with China. This update impacts shareholders by providing clarity on the dividend payment process and tax obligations, potentially affecting investment decisions and the company’s financial attractiveness.

China Energy Engineering Corp. Announces AGM Results and Board Changes
Jun 24, 2025

China Energy Engineering Corporation Limited announced that all resolutions were passed at their 2024 annual general meeting held on June 24, 2025. The meeting included the approval of a profit distribution plan and the payment of a final dividend. Additionally, Mr. Pei Zhenjiang was appointed as an independent non-executive director, replacing Mr. Zhao Lixin, who stepped down due to age. These changes are expected to influence the company’s governance structure and potentially impact its strategic direction.

China Energy Engineering Wins Bid for Major Power Project
Jun 16, 2025

China Energy Engineering Corporation Limited has announced that its subsidiaries have won the bid for the EPC general contracting project of the Jiangyin Sulong 2×660MW Phase IV Expansion Project, valued at approximately RMB5,005.08 million. This project involves the construction of ultra-supercritical, double reheat coal-fired power generation units with flue gas desulphurization and denitrification equipment, expected to be completed in 22 months. However, the formal contract has not yet been signed, indicating some uncertainty and potential investment risks.

China Energy Engineering Corp. Postpones 2024 AGM and Adjusts Share Register Closure
Jun 9, 2025

China Energy Engineering Corporation Limited has announced the postponement of its Annual General Meeting (AGM) for the year 2024, originally scheduled for June 20, 2025, to June 24, 2025, due to coordination of related work arrangements. Consequently, the period for closure of the register of members of H Shares has been adjusted to accommodate this change, allowing shareholders to attend and vote at the rescheduled AGM. The company has assured that all previously distributed proxy forms remain valid for the postponed meeting, ensuring minimal disruption for stakeholders.

China Energy Engineering Announces Final Dividend for 2024
Jun 9, 2025

China Energy Engineering Corporation Limited has announced an update regarding its final cash dividend for the year ended December 31, 2024. The dividend declared is RMB 0.262 per 10 shares, with the payment date set for August 15, 2025. The announcement includes details on withholding tax rates applicable to different types of shareholders, reflecting the company’s compliance with international tax treaties and its commitment to transparent shareholder communication.

China Energy Engineering Corp. Announces Senior Management Changes
Jun 9, 2025

China Energy Engineering Corporation Limited has announced changes in its senior management, appointing Mr. Yin Qiang and Mr. Xu Lu as deputy general managers, effective from June 9, 2025. This change is part of the company’s strategic management restructuring, which also includes the resignation of Ms. Li Lina as chief accountant due to a change in work arrangements. The company expressed gratitude for Ms. Li’s contributions and confirmed there are no disagreements related to her departure.

China Energy Engineering Corp. Announces Change in Board at 2024 AGM
Jun 5, 2025

China Energy Engineering Corporation Limited has announced a supplemental notice for its 2024 annual general meeting, scheduled for June 20, 2025, in Beijing. The meeting will address the change of an independent non-executive director, which could impact the company’s governance and strategic direction. Shareholders are encouraged to participate and vote on the proposed resolution.

China Energy Engineering Corp. Nominates New Independent Director
May 30, 2025

China Energy Engineering Corporation Limited has announced the nomination of Mr. Pei Zhenjiang as a candidate for the position of independent non-executive director. Mr. Pei, a seasoned engineer with extensive experience in management and engineering, is expected to enhance the board’s independence and diversity, contributing to the company’s decision-making and oversight. His appointment aligns with the company’s diversity and nomination policies, and he meets the independence requirements as per the Listing Rules. This move is anticipated to strengthen the company’s governance and benefit shareholders.

China Energy Engineering Wins Major EPC Contract for Coal-Fired Power Project
May 28, 2025

China Energy Engineering Corporation Limited announced that its subsidiary, China Electric Power Engineering Consulting Group Northwest Electric Power Design Institute Co., Ltd., has won the bid for the EPC contract for the China Xinjian Electric Power Bingzhun Park 6×660MW coal-fired power project. The project, valued at approximately RMB 14.586 billion, involves constructing six ultra-supercritical coal-fired power generating units and associated environmental protection facilities. The construction is expected to take around 36.5 months, although formal contracts have yet to be signed, indicating potential uncertainties.

China Energy Engineering Corp. Announces Final Dividend for 2024
May 22, 2025

China Energy Engineering Corporation Limited has announced a final cash dividend of RMB 0.262 per 10 shares for the financial year ending December 31, 2024. The dividend will be paid on August 15, 2025, following shareholder approval on June 20, 2025. The announcement includes details on withholding tax rates applicable to different categories of shareholders, reflecting the company’s compliance with international tax treaties. This dividend declaration underscores the company’s financial health and commitment to returning value to its shareholders, potentially strengthening its market position and investor confidence.

China Energy Engineering Corp. Announces 2024 AGM with Key Resolutions
May 22, 2025

China Energy Engineering Corporation Limited has announced its annual general meeting for 2024, scheduled for June 20, 2025, in Beijing. The meeting will address several key resolutions, including the approval of the 2024 annual report, remuneration plans for directors and supervisors, and the re-appointment of the auditor for 2025. A special resolution will also be considered for a general mandate to issue domestic and overseas bonds. This AGM is crucial for setting the company’s strategic direction and financial planning for the upcoming year, impacting stakeholders and reinforcing its position in the energy engineering industry.

China Energy Engineering Releases 2025 Q1 Report
Apr 29, 2025

China Energy Engineering Corporation Limited has released its unaudited first quarterly report for 2025, prepared in accordance with Chinese Accounting Standards for Business Enterprises. The report, consistent with the announcement published on the Shanghai Stock Exchange, highlights the company’s adherence to regulatory requirements and provides stakeholders with updated financial information, reflecting its ongoing commitment to transparency and compliance.

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.Date of analysis: Jul 24, 2025