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China Energy Engineering Corp. Ltd. Class H (HK:3996)
:3996

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

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China Energy Engineering Corp. Ltd. Class H

(Frankfurt:3996)

Rating:68Neutral
Price Target:
HK$1.00
▼(-4.76%Downside)
The overall score for China Energy Engineering Corp. Ltd. Class H is 67.5, driven primarily by solid revenue growth and a strong valuation profile, indicating potential undervaluation. However, significant leverage and negative cash flow present financial risks that need addressing. Technical indicators show neutral momentum, reinforcing the need for cautious optimism.

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 various streams. The primary source of income is its engineering, procurement, and construction (EPC) services, where it undertakes large-scale infrastructure projects in the energy sector, including power plants and grid construction. The company also earns revenue from its investment and operation in energy projects, providing long-term operational services and maintenance. Equipment manufacturing and sale, particularly in power generation equipment, contribute to its income. Additionally, Energy China benefits from strategic partnerships and government contracts, significantly boosting its earnings through public infrastructure projects and international collaborations.

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

Summary
China Energy Engineering Corp. Ltd. Class H demonstrates strong revenue growth and moderate profitability in the construction industry. However, high leverage and negative free cash flow are concerning, suggesting potential financial instability if not addressed. The company must improve cash flow management and operational efficiency 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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
436.71B406.03B366.39B322.32B270.33B
Gross Profit
53.90B51.31B45.50B42.41B36.10B
EBIT
14.83B14.05B19.69B18.31B17.22B
EBITDA
27.15B26.89B25.07B21.07B21.43B
Net Income Common Stockholders
8.40B7.99B7.82B9.60B8.69B
Balance SheetCash, Cash Equivalents and Short-Term Investments
91.58B77.71B78.39B61.49B53.56B
Total Assets
869.00B783.16B664.35B528.86B476.05B
Total Debt
290.34B244.19B201.78B124.10B118.05B
Net Debt
199.17B166.90B128.68B65.80B68.19B
Total Liabilities
663.18B594.90B496.86B379.13B338.12B
Stockholders Equity
116.01B110.46B101.89B94.20B99.40B
Cash FlowFree Cash Flow
-34.49B-21.64B-12.05B-5.20B-8.47B
Operating Cash Flow
11.03B9.49B7.93B8.84B6.49B
Investing Cash Flow
-50.34B-41.53B-49.03B-18.65B-20.19B
Financing Cash Flow
53.36B36.05B52.32B12.32B22.14B

China Energy Engineering Corp. Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.05
Price Trends
50DMA
1.01
Positive
100DMA
0.99
Positive
200DMA
0.98
Positive
Market Momentum
MACD
<0.01
Negative
RSI
64.27
Neutral
STOCH
87.50
Negative
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 1.05 is above the 20-day moving average (MA) of 1.02, above the 50-day MA of 1.01, and above the 200-day MA of 0.98, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.27 is Neutral, neither overbought nor oversold. The STOCH value of 87.50 is Negative, 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
HK$63.36B4.718.19%4.50%4.81%1.42%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
$6.21B12.169.94%4.34%
$7.35B9.048.13%5.23%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.05
0.21
25.30%
CRGGF
China Resources Gas Group
2.81
-0.70
-19.94%
DNGFF
Dongfang Electric
1.28
-0.40
-23.81%

China Energy Engineering Corp. Ltd. Class H Corporate Events

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.

China Energy Engineering Corp Reports Growth in Q1 2025 Contract Values
Apr 23, 2025

China Energy Engineering Corporation Limited announced its major operating information for the first quarter of 2025, highlighting a 5.75% increase in the total value of newly-signed contracts compared to the same period last year. The company saw significant growth in new energy and comprehensive intelligence energy projects, urban construction, and comprehensive transportation, while industrial manufacturing experienced a decline. The regional distribution of contracts showed a 4.18% increase domestically and a 10.47% increase overseas, indicating a balanced expansion in both domestic and international markets.

China Energy Engineering Corp Secures Major EPC Contract for Weihai Thermal Power Project
Apr 22, 2025

China Energy Engineering Corporation Limited announced that its subsidiary, China Electric Power Engineering Consulting Group Northeast Electric Power Design Institute Co., Ltd., in collaboration with China Energy Engineering Group Tianjin Electric Power Construction Co., Ltd., has won the bid for the EPC General Contracting Project of Weihai Thermal Power 2×660MW Cogeneration Project. The project, valued at approximately RMB5.118 billion, involves the construction of ultra-supercritical coal-fired power generating units with advanced environmental control technologies. However, the formal contract has yet to be signed, indicating potential uncertainties and investment risks for stakeholders.

China Energy Engineering Corp. Schedules Board Meeting for Quarterly Results
Apr 15, 2025

China Energy Engineering Corporation Limited has announced a board meeting scheduled for April 29, 2025, to approve and publish the company’s first quarterly results for the period ending March 31, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and informing stakeholders about its operational progress.

China Energy Engineering Secures Major Water Supply Project in Kazakhstan
Apr 1, 2025

China Energy Engineering Corporation Limited announced that its subsidiary, China Gezhouba Group Stock Company Limited, has entered into a significant contract with Astana Capital Water Supply Company for the Astana Water Supply Project in Kazakhstan. The project, valued at approximately RMB9.6 billion, involves the construction of a comprehensive water supply system, including a pumping station, booster stations, a lengthy pipeline, and a purification plant, over a 36-month period. This contract underscores the company’s strategic expansion in international markets and its expertise in large-scale infrastructure projects, potentially enhancing its market position and offering growth opportunities.

China Energy Engineering Corp. Announces Successful 2025 Shareholder Meetings
Mar 28, 2025

China Energy Engineering Corporation Limited successfully held its first extraordinary general meeting and class meetings for A and H shareholders in 2025, where all proposed resolutions were passed by shareholder vote. The meetings, conducted in compliance with Chinese laws and company regulations, saw significant shareholder participation, with 55.99% of total issued shares represented, highlighting robust shareholder engagement and support for the company’s strategic decisions.

China Energy Engineering Corp. Announces RMB 3,823 Million Asset Impairment Provision for 2024
Mar 28, 2025

China Energy Engineering Corp. Ltd. has announced a significant provision for asset impairment amounting to RMB 3,823 million for the year 2024. This decision, which has been reviewed and approved by the company’s board and audit committee, reflects a decrease in total profit by the same amount in its consolidated financial statements. The provision is aligned with the company’s accounting policies and aims to fairly represent the asset status, ensuring the interests of the company and its shareholders are protected.

China Energy Engineering Corp Announces Final Dividend for 2024
Mar 28, 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. This announcement highlights the company’s commitment to returning value to its shareholders. The dividend will be subject to withholding tax, with specific rates applied based on the shareholders’ residency and applicable tax treaties. The exact dates for shareholder approval, payment, and other related processes are yet to be announced.

China Energy Engineering Corp. Releases 2024 Annual Results
Mar 28, 2025

China Energy Engineering Corporation Limited has announced its audited annual results for the year ending December 31, 2024. The results, prepared in accordance with China Accounting Standards and audited by Pan-China Certified Public Accountants LLP, have been reviewed and confirmed by the Board and Audit Committee. The annual report will be available to shareholders upon request and can be accessed on the company’s and Hong Kong Stock Exchange’s websites. This announcement underscores the company’s commitment to transparency and compliance with regulatory requirements, potentially enhancing its credibility and investor confidence.

China Energy Engineering Corp. Schedules Board Meeting for Annual Results
Mar 18, 2025

China Energy Engineering Corporation Limited has announced a board meeting scheduled for March 28, 2025, to approve the annual results for the year ending December 31, 2024, and to consider the payment of a final dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its financial standing and investor relations positively.

China Energy Engineering Announces Supervisor Resignations
Mar 11, 2025

China Energy Engineering Corporation Limited announced the resignation of two supervisors, Mr. He Jiansheng and Mr. Mao Fengfu, due to their retirement. Their departure will not affect the operations of the Supervisory Committee, as the number of members remains above the statutory minimum. The company expressed gratitude for their contributions and will announce new appointments in due course.

China Energy Engineering Corp. Announces 2025 Extraordinary General Meeting
Mar 10, 2025

China Energy Engineering Corporation Limited has announced the first extraordinary general meeting of 2025, scheduled for March 28, 2025, in Beijing. The meeting will address resolutions concerning the extension of the validity period for the issuance of A Shares to specific subscribers, reflecting the company’s strategic focus on capital management and shareholder engagement.

China Energy Engineering Corp. Announces 2025 H Shareholders’ Class Meeting
Mar 10, 2025

China Energy Engineering Corporation Limited has announced the first H Shareholders’ class meeting of 2025, scheduled for March 28, 2025, in Beijing. The meeting will address resolutions concerning the extension of the validity period for the issuance of A Shares to specific subscribers, which could impact the company’s capital structure and shareholder engagement.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.