Tonking New Energy Group Holdings Ltd. (8326) AI Stock Analysis

• Market Cap: HK$197.55M
• Dividend Yield: N/A
• Average Volume (3M): 592.17K
• Price to Earnings (P/E): 2.4
• Beta (1Y): -0.02
• Revenue Growth: 34.44%
• EPS Growth: 83.60%
• Country: HK
• Employees: 168
• Sector: Utilities
• Sector Strength: 65
• Industry: Renewable Utilities
• EPS (TTM): N/A
• Shares Outstanding: 1,227,000,000
• 10 Day Avg. Volume: 85,000
• 30 Day Avg. Volume: 592,166
• PEG Ratio: 0.04
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 3.47
• 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): 0.46
• Revenue Forecast (FY): HK$8.19B

• Rating: 72 Outperform
• Price Target: HK$0.17 ▲(6.25% Upside)

Tonking New Energy Group Holdings Ltd. scores well due to its strong financial performance and attractive valuation. The company's profitability and cash flow metrics are improving, and it appears undervalued with a low P/E ratio. However, technical indicators are mixed, with some signs of neutral momentum, which slightly tempers the overall score.

Positive Factors

Cash Flow Generation

The significant improvement in free cash flow indicates robust cash generation capabilities, supporting long-term investments and financial stability.

Profitability Improvement

The rise in net profit margin reflects enhanced cost management and operational efficiency, contributing to sustainable profitability.

Debt Management

Effective debt management reduces financial risk and enhances the company's ability to invest in growth opportunities.

Negative Factors

Revenue Growth Volatility

The volatility in revenue growth poses a risk to future stability, potentially impacting long-term strategic planning and market confidence.

Lack of Comprehensive Metrics

The absence of detailed financial metrics can hinder a full understanding of the company's financial health, affecting investor confidence.

Recent Revenue Decline

Recent revenue decline may challenge the company's ability to maintain its market position and could pressure future earnings growth.

Tonking New Energy Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Tonking New Energy Group Holdings Ltd. (8326) is a Hong Kong-based company focused on the renewable energy sector, primarily involved in the development, production, and distribution of solar energy products. The company specializes in photovoltaic (PV) technology, offering a range of solar panels and related equipment, catering to both residential and commercial markets. Tonking aims to contribute to sustainable energy solutions and reduce carbon emissions through its innovative energy products and services.

How the Company Makes Money

Tonking New Energy Group Holdings Ltd. generates revenue primarily through the sale of solar energy products, including photovoltaic panels, inverters, and other related equipment. The company's revenue model is based on direct sales to end customers as well as partnerships with distributors and installers in the renewable energy sector. Key revenue streams include product sales, installation services, and maintenance contracts. Additionally, Tonking may benefit from government incentives and subsidies aimed at promoting renewable energy adoption, which can enhance its profit margins. Strategic partnerships with other renewable energy firms or technology providers further contribute to its earnings by expanding its market reach and enhancing product offerings.

Tonking New Energy Group Holdings Ltd. Financial Statement Overview

Summary

Tonking New Energy Group Holdings Ltd. demonstrates a solid financial position with improving profitability and cash flow metrics. Despite a recent dip in revenue growth, the company has managed to enhance its profit margins and cash flow generation significantly. The balance sheet reflects prudent debt management, although the lack of certain metrics limits a comprehensive assessment.

Income Statement

Tonking New Energy Group Holdings Ltd. has shown a consistent improvement in profitability metrics over the years. The gross profit margin has improved from 8.61% in 2021 to 14.99% in 2025, indicating better cost management. The net profit margin has also increased significantly from a negative 4.52% in 2021 to 6.96% in 2025, reflecting enhanced profitability. However, the revenue growth rate has been volatile, with a recent decline of 5.41% in 2025, which could be a concern for future revenue stability.

Balance Sheet

The company's balance sheet shows a stable debt-to-equity ratio, decreasing from 0.52 in 2020 to 0.41 in 2025, indicating effective debt management. The return on equity has improved from negative in 2021 to 20.06% in 2025, showcasing strong profitability relative to shareholder equity. However, the equity ratio has not been explicitly calculated, which limits a full assessment of asset financing.

Cash Flow

Cash flow metrics indicate a strong recovery, with free cash flow growth of 828.66% in 2025, a significant turnaround from negative growth in previous years. The operating cash flow to net income ratio has improved, reflecting better cash generation relative to earnings. The free cash flow to net income ratio remains strong at 95.81%, indicating efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.03B	766.11M	688.97M	240.52M	198.60M
Gross Profit	187.49M	154.41M	96.51M	72.18M	44.40M	20.98M
EBITDA	119.04M	94.20M	48.84M	45.21M	12.37M	-523.00K
Net Income	79.95M	71.65M	32.82M	27.63M	5.50M	-8.63M
Balance Sheet
Total Assets	806.59M	806.59M	649.25M	516.08M	423.19M	381.88M
Cash, Cash Equivalents and Short-Term Investments	80.67M	80.67M	44.32M	54.62M	34.58M	20.20M
Total Debt	146.06M	146.06M	146.46M	98.33M	87.79M	71.46M
Total Liabilities	430.78M	430.78M	376.93M	260.17M	171.33M	145.89M
Stockholders Equity	357.20M	357.20M	253.90M	236.44M	229.63M	213.32M
Cash Flow
Free Cash Flow	49.03M	49.03M	-62.75M	20.92M	9.80M	-60.93M
Operating Cash Flow	51.18M	51.18M	-60.28M	22.07M	14.42M	-60.31M
Investing Cash Flow	-39.65M	-39.65M	6.87M	-7.27M	-7.51M	-21.00K
Financing Cash Flow	25.40M	25.40M	45.13M	7.12M	6.97M	-38.72M

Tonking New Energy Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8326, the sentiment is Negative. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, below the 50-day MA of 0.16, and above the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.17 is Neutral, neither overbought nor oversold. The STOCH value of -4.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8326.

Tonking New Energy Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8326	72 Outperform	HK$197.55M	2.36	23.45%	―	34.44%	83.60%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0987	62 Neutral	HK$333.32M	8.93	2.00%	3.88%	15.92%	―
0090	58 Neutral	HK$600.77M	15.82	4.04%	1.26%	16.01%	-53.67%
1165	42 Neutral	HK$121.98M	―	―	―	-21.67%	-18.64%
0295	40 Underperform	€254.40M	―	―	―	―	―
0451	40 Underperform	$1.18B	-1.71	-35.49%	―	39.42%	56.89%