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

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HK:3996

China Energy Engineering Corp. Ltd. Class H

(3996)

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Neutral 56 (OpenAI - 4o)
Rating:56Neutral
Price Target:
HK$1.00
▼(-19.35% Downside)
The overall stock score is primarily influenced by the company's financial performance, which shows steady revenue growth but is hindered by low profitability and high leverage. Technical analysis indicates a bearish trend, while the valuation suggests the stock may be undervalued, offering a favorable P/E ratio and dividend yield.

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 MoneyThe company generates revenue primarily through its extensive portfolio of engineering and construction contracts related to energy projects. Key revenue streams include the design and construction of power plants, installation of energy infrastructure, and maintenance services. Additionally, China Energy Engineering Corp. benefits from government contracts and partnerships with other state-owned enterprises, which often provide a stable source of income. The company also earns revenue from its investments in renewable energy projects and energy efficiency initiatives, aligning with global trends towards sustainable energy solutions.

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

Summary
China Energy Engineering Corp. Ltd. Class H shows steady revenue growth but struggles with profitability due to low margins and high leverage. The balance sheet indicates significant debt, posing financial stability risks. Cash flow management is a concern with negative free cash flow, despite slight improvements.
Income Statement
The company shows a consistent revenue growth rate of 3.38% in the TTM, indicating a positive trajectory. However, margins are relatively low with a net profit margin of 1.85% and an EBIT margin of 4.32%, suggesting limited profitability. The gross profit margin has slightly decreased over time, reflecting potential cost pressures.
Balance Sheet
The debt-to-equity ratio is high at 2.80, indicating significant leverage which could pose risks in a volatile market. Return on equity is modest at 7.71%, showing average efficiency in generating returns on shareholders' equity. The equity ratio is not explicitly calculated but appears low, suggesting reliance on debt financing.
Cash Flow
The company faces challenges with negative free cash flow, although there is a slight improvement in free cash flow growth at 15.97% in the TTM. The operating cash flow to net income ratio is low at 0.03, indicating limited cash generation relative to net income. The negative free cash flow to net income ratio highlights cash flow management issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue454.54B436.71B406.03B366.39B322.32B270.33B
Gross Profit54.39B53.90B51.31B45.50B42.41B36.73B
EBITDA27.39B27.15B26.89B25.07B21.07B18.46B
Net Income8.42B8.40B7.99B7.82B6.50B4.67B
Balance Sheet
Total Assets938.74B869.00B783.16B664.35B528.86B476.05B
Cash, Cash Equivalents and Short-Term Investments88.68B91.58B77.71B78.39B61.49B53.56B
Total Debt330.63B290.34B244.19B201.78B124.10B111.73B
Total Liabilities729.61B663.18B594.90B496.86B379.13B338.12B
Stockholders Equity117.99B116.01B110.46B101.89B94.20B99.40B
Cash Flow
Free Cash Flow-30.36B-34.49B-21.64B-12.05B-5.20B-8.47B
Operating Cash Flow12.14B11.03B9.49B7.93B8.84B6.49B
Investing Cash Flow-49.21B-50.34B-41.53B-49.03B-18.65B-20.19B
Financing Cash Flow51.51B53.36B36.05B52.32B12.32B22.14B

China Energy Engineering Corp. Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.24
Price Trends
50DMA
1.23
Positive
100DMA
1.22
Positive
200DMA
1.09
Positive
Market Momentum
MACD
<0.01
Negative
RSI
52.22
Neutral
STOCH
69.64
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 1.24 is above the 20-day moving average (MA) of 1.23, above the 50-day MA of 1.23, and above the 200-day MA of 1.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 69.64 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
€30.85B11.228.27%5.46%11.89%8.49%
HK$79.67B8.595.76%2.35%-18.26%1.37%
$143.77B3.857.91%4.72%-7.46%-21.80%
$53.40B5.4313.70%7.07%-5.14%-4.05%
$10.79B15.437.44%2.01%2.89%-14.66%
€71.94B5.558.26%3.64%11.09%3.52%
HK$16.37B82.923.35%-1.75%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.24
0.20
19.69%
HK:3311
China State Construction International Holdings
8.84
-2.02
-18.60%
HK:0390
China Railway Group
3.94
0.14
3.74%
HK:1618
Metallurgical Corporation of China Ltd. Class H
2.37
0.70
41.66%
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
7.49
2.34
45.55%
HK:2068
China Aluminum International Engineering Corporation Limited Class H
2.56
0.43
20.19%

China Energy Engineering Corp. Ltd. Class H Corporate Events

China Energy Engineering Releases 2025 Q3 Report
Oct 30, 2025

China Energy Engineering Corporation Limited has released its unaudited third quarterly report for 2025, prepared in accordance with Chinese Accounting Standards for Business Enterprises. The report, consistent with an announcement on the Shanghai Stock Exchange, is part of the company’s compliance with regulatory requirements and provides stakeholders with updated financial information.

The most recent analyst rating on (HK:3996) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Energy Engineering Corp. Ltd. Class H stock, see the HK:3996 Stock Forecast page.

China Energy Engineering Renews Factoring Service Agreement
Oct 30, 2025

China Energy Engineering Corporation Limited has announced the renewal of its Commercial Factoring Service Framework Agreement with Beijing Energy Chemistry Factoring Company, effective from 2026. This agreement involves the provision of commercial factoring services, including both non-recourse and recourse factoring, as well as related consulting services. The renewal signifies the continuation of connected transactions under the Listing Rules, with specific reporting and review requirements, thereby reinforcing the company’s strategic partnerships and operational continuity in the energy sector.

The most recent analyst rating on (HK:3996) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Energy Engineering Corp. Ltd. Class H stock, see the HK:3996 Stock Forecast page.

China Energy Engineering Reports Q3 2025 Performance with Mixed Results
Oct 24, 2025

In the third quarter of 2025, China Energy Engineering Corporation Limited reported a slight increase in its total value of newly-signed contracts, reaching 217.418 billion Yuan. The company saw growth in urban construction and comprehensive transportation projects, while its industrial manufacturing sector experienced a significant decline. The announcement highlights the company’s strategic focus on expanding its new energy and comprehensive intelligence energy business, despite a minor decrease in this sector.

The most recent analyst rating on (HK:3996) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Energy Engineering Corp. Ltd. Class H stock, see the HK:3996 Stock Forecast page.

China Energy Engineering Corp. Schedules Board Meeting for Q3 Results
Oct 17, 2025

China Energy Engineering Corporation Limited has announced a board meeting scheduled for October 30, 2025, to approve and publish the third quarterly results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, impacting stakeholders and potentially influencing the company’s market position.

The most recent analyst rating on (HK:3996) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Energy Engineering Corp. Ltd. Class H stock, see the HK:3996 Stock Forecast page.

China Energy Engineering Corp Secures $2.745 Billion in Saudi EPC Contracts
Oct 10, 2025

China Energy Engineering Corporation Limited announced that its subsidiaries have entered into three significant EPC contracts for new energy projects in Saudi Arabia, totaling approximately USD 2.745 billion. These projects, part of Saudi Arabia’s PIF initiatives, include wind and photovoltaic power projects, reflecting the company’s strategic focus on expanding its renewable energy portfolio and strengthening its position in the international energy market.

The most recent analyst rating on (HK:3996) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on China Energy Engineering Corp. Ltd. Class H stock, see the HK:3996 Stock Forecast page.

China Energy Engineering Corp. Appoints New Employee Director
Sep 5, 2025

China Energy Engineering Corporation Limited has announced the election of Mr. Huang Pu as an employee director, following a meeting of employee representatives. Mr. Huang, who holds a significant leadership role within the company, will serve without receiving director’s emoluments, indicating a strategic internal appointment that may strengthen the company’s governance and operational alignment.

The most recent analyst rating on (HK:3996) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Energy Engineering Corp. Ltd. Class H stock, see the HK:3996 Stock Forecast page.

China Energy Engineering Corp. Announces Board Composition and Governance Structure
Sep 5, 2025

China Energy Engineering Corporation Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to various board committees, such as the Strategy, Nomination, Remuneration and Assessment, Audit, and Supervisory Committees. This announcement underscores the company’s commitment to structured governance and strategic oversight, which could enhance its operational efficiency and industry positioning.

The most recent analyst rating on (HK:3996) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on China Energy Engineering Corp. Ltd. Class H stock, see the HK:3996 Stock Forecast page.

China Energy Engineering Corp. Releases 2025 Interim Results
Aug 28, 2025

China Energy Engineering Corporation Limited has announced its unaudited interim results for the six months ended 30 June 2025. The results, prepared in accordance with China Accounting Standards and reviewed by Pan-China Certified Public Accountants LLP, have been confirmed by the company’s Board and Audit Committee. The interim report will be available to shareholders upon request and online, reflecting the company’s commitment to transparency and regulatory compliance.

The most recent analyst rating on (HK:3996) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on China Energy Engineering Corp. Ltd. Class H stock, see the HK:3996 Stock Forecast page.

China Energy Engineering Corp. to Announce Interim Results
Aug 15, 2025

China Energy Engineering Corporation Limited has announced that its board of directors will hold a meeting on August 28, 2025, to approve and publish the interim results for the first half of 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting stakeholders and market positioning.

China Energy Engineering Corp Updates on Director’s Previous Role
Aug 6, 2025

China Energy Engineering Corporation Limited announced a change in information regarding Dr. Ngai Wai Fung, an independent non-executive director of the company. This disclosure is due to a winding-up order issued against SPI Energy, a company where Dr. Ngai was previously an independent director. The proceedings against SPI Energy are not connected to China Energy Engineering Corp, and there are no implications for the company’s operations or stakeholders.

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: Nov 01, 2025