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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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HK:3996

China Energy Engineering Corp. Ltd. Class H

(3996)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
HK$1.00
▼(-6.54% Downside)
The overall stock score reflects a mixed outlook. The company's financial performance shows growth potential but is hindered by high leverage and cash flow issues. Technical analysis indicates bearish market momentum, while the valuation suggests the stock might be undervalued, offering potential upside. The absence of earnings call data and corporate events limits additional insights.
Positive Factors
Revenue Growth
Consistent revenue growth indicates a positive trajectory, suggesting the company is expanding its market presence and effectively executing its business model.
Operational Efficiency
Stable EBIT and EBITDA margins demonstrate the company's ability to manage costs effectively, which is crucial for long-term profitability and competitiveness.
Government Contracts
Stable income from government contracts provides a reliable revenue stream, enhancing financial stability and reducing business risk.
Negative Factors
High Leverage
High leverage can increase financial risk and limit the company's ability to invest in growth opportunities, impacting long-term sustainability.
Cash Flow Constraints
Cash flow constraints can hinder the company's ability to fund operations and growth initiatives, posing a challenge to financial health and flexibility.
Profitability Challenges
Low profitability margins suggest challenges in converting revenue into profit, which may affect the company's ability to reinvest in its business and reward shareholders.

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 Corp. Ltd. Class H (3996) is a leading state-owned enterprise in the energy and engineering sector, specializing in the design, construction, and operation of power generation facilities. The company operates across various segments, including thermal power, hydropower, nuclear power, and renewable energy projects. With a strong emphasis on sustainable development, China Energy Engineering Corp. is also involved in energy consulting, project management, and the provision of related technical services.
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
The company demonstrates steady revenue growth but struggles with low profitability and high leverage. The balance sheet reveals significant debt levels, which could affect financial stability. Cash flow management is a concern due to negative free cash flow, although there are signs of improvement.
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 Revenue475.00B436.71B406.03B366.39B322.32B270.33B
Gross Profit55.78B53.90B51.31B45.50B42.41B36.73B
EBITDA26.47B27.15B26.89B25.07B21.07B18.46B
Net Income7.98B8.40B7.99B7.82B6.50B4.67B
Balance Sheet
Total Assets1.03T869.00B783.16B664.35B528.86B476.05B
Cash, Cash Equivalents and Short-Term Investments90.37B91.58B77.71B78.39B61.49B53.56B
Total Debt383.97B290.34B244.19B192.97B124.10B111.73B
Total Liabilities814.29B663.18B594.90B496.86B379.13B338.12B
Stockholders Equity119.90B116.01B110.46B101.89B94.20B99.40B
Cash Flow
Free Cash Flow-31.78B-34.49B-21.64B-12.05B-5.20B-8.47B
Operating Cash Flow14.85B11.03B9.49B7.93B8.84B6.49B
Investing Cash Flow-47.08B-50.34B-41.53B-49.03B-18.65B-20.19B
Financing Cash Flow44.94B53.36B36.05B52.32B12.32B22.14B

China Energy Engineering Corp. Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.07
Price Trends
50DMA
1.13
Negative
100DMA
1.18
Negative
200DMA
1.14
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
58.30
Neutral
STOCH
81.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3996, the sentiment is Neutral. The current price of 1.07 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.13, and below the 200-day MA of 1.14, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 81.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
78
Outperform
HK$34.49B12.648.27%5.31%11.89%8.49%
72
Outperform
HK$144.53B3.877.41%7.43%-7.46%-21.80%
67
Neutral
HK$47.43B4.8213.70%6.69%-5.14%-4.05%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
62
Neutral
HK$66.67B9.103.80%3.21%-18.36%-47.29%
60
Neutral
HK$68.87B5.447.78%3.90%11.49%-7.01%
44
Neutral
HK$18.41B83.233.35%-1.75%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3996
China Energy Engineering Corp. Ltd. Class H
1.12
0.24
26.55%
HK:3311
China State Construction International Holdings
8.98
-2.14
-19.28%
HK:0390
China Railway Group
4.03
0.69
20.69%
HK:1618
Metallurgical Corporation of China Ltd. Class H
1.84
0.41
28.58%
HK:2386
SINOPEC Engineering (Group) Co., Ltd. Class H
7.85
2.03
34.90%
HK:2068
China Aluminum International Engineering Corporation Limited Class H
2.68
0.91
51.41%

China Energy Engineering Corp. Ltd. Class H Corporate Events

China Energy Engineering Tightens Governance With Revised Audit and Risk Committee Mandate
Dec 23, 2025

China Energy Engineering Corporation Limited has formalised updated terms of reference for its Board-level Audit and Risk Committee to strengthen decision-making and enhance its corporate governance framework in line with listing rules in Shanghai and Hong Kong and guidelines for central state-owned enterprises. The revised rules define the committee’s role as a specialised body overseeing communication, supervision and verification of internal and external audits and risk management, stipulate a minimum of three non-executive directors with a majority of independent non-executive directors and at least one member with accounting or financial expertise, and set out clear procedures for nomination, tenure, resignation, replacement and conflict-of-interest safeguards, with the internal audit department designated as the committee’s executive support arm, thereby tightening oversight of financial reporting and risk for stakeholders.

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 Wins Shareholder Backing to Dissolve Supervisory Board and Revise Articles
Dec 23, 2025

China Energy Engineering Corporation Limited announced that shareholders approved all resolutions at its second extraordinary general meeting of 2025 and concurrent A- and H-share class meetings held in Beijing on 23 December 2025. The poll results endorsed the dissolution of the board of supervisors, amendments to the company’s articles of association and related rules of procedures, and arrangements connected to the extension of certain non-competition commitments by the controlling shareholder, for which China Energy Group and its associate abstained from voting due to a material interest. The meetings were conducted in compliance with PRC company law and the company’s articles, with full voting rights available for all shareholders on most resolutions, underscoring a formal restructuring of the company’s supervisory framework and a recalibration of governance provisions that may affect oversight, shareholder alignment, and future corporate control dynamics.

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 2025 Extraordinary General Meeting
Dec 4, 2025

China Energy Engineering Corporation Limited has announced the convening of its second extraordinary general meeting of 2025, scheduled for December 23 in Beijing. The meeting will address significant resolutions, including amendments to the company’s Articles of Association and the dissolution of the Board of Supervisors, as well as the extension of non-competition commitments by the controlling shareholder. These resolutions could impact the company’s governance structure and shareholder relations, reflecting strategic adjustments in its corporate operations.

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 2025 H Shareholders’ Meeting
Dec 4, 2025

China Energy Engineering Corporation Limited has announced the convening of its second H Shareholders’ Class Meeting of 2025, scheduled for December 23, 2025, in Beijing. The meeting aims to consider a special resolution on amendments to the company’s Articles of Association and the dissolution of the Board of Supervisors. This move could potentially impact the company’s governance structure and operational strategies, reflecting a significant shift in its corporate management approach.

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. Proposes Governance Restructuring
Dec 2, 2025

China Energy Engineering Corporation Limited has announced proposed amendments to its Articles of Association and the dissolution of its Board of Supervisors. These changes are intended to align with the revised Company Law of the People’s Republic of China and other regulatory guidelines. The responsibilities of the dissolved Board of Supervisors will be integrated into a newly renamed audit and risk committee under the Board of Directors. These amendments are subject to approval at the company’s general and class meetings, and aim to streamline governance structures, potentially impacting the company’s operational efficiency and stakeholder engagement.

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.

Leadership Changes at China Energy Engineering Corp: New Chairman Appointed
Nov 21, 2025

China Energy Engineering Corporation Limited has announced significant leadership changes, with Mr. Ni Zhen being appointed as the new chairman of the board, succeeding Mr. Song Hailiang. Mr. Ni Zhen, who has a strong background in engineering and extensive experience in leadership roles within the company, will also cease to serve as the general manager. These changes are part of the company’s strategic realignment and are expected to influence its governance and operational strategies, potentially impacting stakeholders and the company’s positioning in the energy engineering sector.

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
Nov 21, 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 is significant as it outlines the leadership structure and governance framework, which could impact the company’s strategic direction and operational efficiency.

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 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.

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: Dec 18, 2025