Henan JinMa Energy Co. Ltd. Class H (6885) AI Stock Analysis

• Market Cap: HK$610.38M
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -26.97%
• EPS Growth: -76.57%
• Country: HK
• Employees: 2,761
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Coal
• EPS (TTM): -0.25
• Shares Outstanding: 535,421,000
• 10 Day Avg. Volume: 3,657,900
• 30 Day Avg. Volume: 1,511,166
• PEG Ratio: <0.01
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 0.59
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$1.00 ▼(-1.96% Downside)

The score is held back primarily by weak financial performance, driven by declining revenues, margin deterioration, and a recent net loss. Technicals provide some support with the stock trading above key moving averages, but momentum signals are mixed. Valuation remains unattractive/uncertain due to the negative P/E and lack of dividend yield data.

Positive Factors

Market position and core business

A clear focus on coal production and distribution gives Henan JinMa structural exposure to base energy demand in China. As a significant player in the supply chain, steady industrial energy needs support durable revenue streams and operational scale advantages over several months.

Stable revenue model & distribution network

A concentrated sales model backed by an extensive distribution network and partnerships with industry and government bodies supports reliable market access. This structural channel strength helps sustain volumes and customer relationships through cyclical periods over the medium term.

Improving cash flow metrics

Recovery in operating cash flow and a substantial rise in free cash flow improve near-term liquidity and funding for working capital or capex. Consistent FCF is a durable indicator of the firm's ability to fund operations and reduce reliance on external financing.

Negative Factors

Declining revenue and margin compression

Sustained revenue declines and gross margin compression reduce operating leverage and erode the company's capacity to cover fixed costs. A negative EBIT margin signals structural operating weakness that can impair reinvestment, competitiveness, and recovery over several months if unaddressed.

Large revenue and EPS contractions

Steep year-on-year declines in revenue and EPS indicate material deterioration in core profitability and demand. Such magnitude of contraction undermines earnings power and makes multi-month recovery harder, pressuring reserves and strategic flexibility absent a structural turnaround.

Rising debt risk amid profitability issues

Growing debt while earnings are negative increases leverage risk and interest burden, eroding financial flexibility. This structural strain can limit capital spending, slow clean-energy investments, and raise refinancing risk over a multi-month horizon if cash generation does not sustain improvements.

Henan JinMa Energy Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Henan JinMa Energy Co. Ltd. is a leading company in the energy sector, primarily engaged in the production and distribution of coal and related energy products. The company operates in various segments of the energy market, focusing on clean and efficient energy solutions. Its core products include high-quality coal, coal-based chemicals, and other energy-related services, positioning it as a significant player in the energy supply chain in China.

How the Company Makes Money

Henan JinMa Energy Co. Ltd. generates revenue primarily through the sale of coal and coal-based products, which constitute its main revenue stream. The company benefits from the growing demand for energy in China and leverages its extensive distribution network to reach various industrial and commercial clients. Additionally, the company may engage in partnerships with other energy firms and government entities to enhance its market presence and expand its product offerings. Factors contributing to its earnings include fluctuations in coal prices, the efficiency of its production processes, and ongoing investments in clean energy initiatives, which may open up new revenue opportunities.

Henan JinMa Energy Co. Ltd. Class H Financial Statement Overview

Summary

Income statement is weak (declining revenue, margin compression, negative EBIT margin, and latest-year net loss). Balance sheet is moderate with manageable leverage but rising debt needs monitoring. Cash flow shows some improvement in operating and free cash flow, partially offsetting profitability concerns.

Income Statement

Henan JinMa Energy Co. Ltd. has shown a declining revenue trajectory over the recent years. The gross profit margin has contracted significantly, and the company faced a negative EBIT margin in the latest period, indicating operational challenges. Net income turned negative in the latest year, highlighting profitability issues.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, although the increasing debt levels could pose future risks. The equity ratio is stable, but the negative net income has impacted return on equity. Financial leverage appears manageable but requires monitoring.

Cash Flow

Operating cash flow has seen fluctuations but showed recovery in the latest period. Free cash flow improved substantially, yet the net income ratio remains a concern due to recent profitability issues. The company needs to maintain consistent cash flow to support operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.21B	11.60B	12.07B	12.45B	7.40B	6.39B
Gross Profit	174.67M	150.11M	448.47M	1.14B	1.02B	1.05B
EBITDA	95.09M	11.48M	463.60M	1.02B	934.69M	946.88M
Net Income	-251.85M	-345.89M	22.32M	421.95M	486.52M	485.47M
Balance Sheet
Total Assets	10.53B	11.22B	12.53B	11.23B	8.53B	6.39B
Cash, Cash Equivalents and Short-Term Investments	647.39M	725.40M	2.05B	1.98B	594.95M	1.41B
Total Debt	3.25B	3.37B	4.15B	3.24B	1.81B	1.02B
Total Liabilities	6.39B	6.88B	7.69B	6.50B	4.22B	2.41B
Stockholders Equity	2.99B	3.12B	3.46B	3.51B	3.23B	2.90B
Cash Flow
Free Cash Flow	230.99M	579.88M	-1.04B	-726.90M	-1.23B	246.75M
Operating Cash Flow	459.25M	942.52M	69.99M	997.01M	1.11B	1.14B
Investing Cash Flow	-596.69M	-722.97M	-898.72M	-1.83B	-2.76B	-1.30B
Financing Cash Flow	-433.08M	-633.45M	832.65M	1.17B	863.50M	-189.31M

Henan JinMa Energy Co. Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6885, the sentiment is Negative. The current price of 1.02 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.25, and below the 200-day MA of 1.10, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.22 is Neutral, neither overbought nor oversold. The STOCH value of 28.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6885.

Henan JinMa Energy Co. Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1229	68 Neutral	HK$156.90M	7.17	9.86%	―	42.60%	-67.94%
1303	66 Neutral	HK$483.72M	7.32	4.33%	―	39.98%	-73.77%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
6885	51 Neutral	HK$610.38M	-1.79	-9.96%	―	-26.97%	-76.57%
0276	46 Neutral	HK$139.21M	-0.08	―	―	-38.71%	-193.94%
1738	42 Neutral	HK$162.90M	-0.24	―	―	-42.18%	-3.23%
1393	41 Neutral	HK$280.92M	-0.49	-48.57%	―	15.80%	51.68%

Henan JinMa Energy Co. Ltd. Class H Corporate Events

Henan Jinma Energy Renews Connected Coke Supply Deal With Xinyang Group for 2026

Henan Jinma Energy has renewed its cooperation with Xinyang Group by entering into a 2026 Framework Agreement on 31 December 2025, under which the group will continue to procure coal from Xinyang and process it into coke and by-products including electricity and sulfuric acid for sale back to Xinyang. As Xinyang Co is a connected person at the subsidiary level through their joint shareholding in Xinyang Jingang, the arrangement constitutes a continuing connected transaction under Hong Kong’s Listing Rules, triggering reporting and announcement obligations but exempting the company from circular, independent financial advice and shareholder approval requirements after the board, including independent directors, deemed the terms fair, reasonable and in the interests of shareholders.

The most recent analyst rating on (HK:6885) stock is a Hold with a HK$0.99 price target. To see the full list of analyst forecasts on Henan JinMa Energy Co. Ltd. Class H stock, see the HK:6885 Stock Forecast page.

Henan Jinma Energy Names Yiu Chiu Fai to Lead Nomination Committee and Join Strategy Panel

Henan Jinma Energy Company Limited has reshuffled its board committee leadership, appointing non-executive director Yiu Chiu Fai as chairman of the Nomination Committee and a member of the Strategic Development Committee with effect from 29 December 2025. The move strengthens the company’s governance framework and strategic oversight at board level, signalling continued focus on board composition, succession planning and long-term development, while the rest of the board structure remains unchanged.

The most recent analyst rating on (HK:6885) stock is a Hold with a HK$0.99 price target. To see the full list of analyst forecasts on Henan JinMa Energy Co. Ltd. Class H stock, see the HK:6885 Stock Forecast page.

Henan Jinma Energy Sets Out Board and Committee Structure

Henan Jinma Energy Company Limited has announced the current composition of its board of directors, which comprises two executive directors, four non-executive directors and three independent non-executive directors, with Mr. Yiu Chiu Fai serving as chairman and Mr. Xu Fenglei as deputy chairman. The company has also set out the membership and leadership of its four key board committees—audit, remuneration, nomination and strategic development—clarifying the roles of each director across these governance bodies, a move that enhances transparency for shareholders and underscores the group’s adherence to structured oversight as it manages its energy operations.

The most recent analyst rating on (HK:6885) stock is a Hold with a HK$0.99 price target. To see the full list of analyst forecasts on Henan JinMa Energy Co. Ltd. Class H stock, see the HK:6885 Stock Forecast page.