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

• Market Cap: HK$186.50M
• Dividend Yield: N/A
• Average Volume (3M): 90.63K
• Price to Earnings (P/E): 2.2
• Beta (1Y): -0.10
• Revenue Growth: 45.29%
• EPS Growth: 175.68%
• Country: HK
• Employees: 168
• Sector: Utilities
• Sector Strength: 66
• Industry: Renewable Utilities
• EPS (TTM): 0.01
• Shares Outstanding: 1,227,000,000
• 10 Day Avg. Volume: 135,000
• 30 Day Avg. Volume: 90,633
• PEG Ratio: 0.01
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.18
• 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

• Rating: 76 Outperform
• Price Target: ―

The overall stock score of 75.6 reflects a positive outlook for Tonking New Energy Group Holdings Ltd., driven by strong financial performance, particularly in revenue growth and profitability. The technical analysis indicates robust market sentiment with the stock trading above key moving averages, suggesting bullish momentum. While the valuation suggests the stock may be undervalued, liquidity concerns highlighted in the cash flow statement should be monitored closely.

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

Company Description

Tonking New Energy Group Holdings Limited, an investment holding company, engages in the renewable energy business in the People's Republic of China. It offers one-stop value added solution for photovoltaic power stations; sells patented photovoltaic tracking mounting bracket systems; researches and develops solar power technology; and sells electricity. The company was formerly known as JC Group Holdings Limited and changed its name to Tonking New Energy Group Holdings Limited in May 2016. Tonking New Energy Group Holdings Limited was founded in 2004 and is headquartered in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Tonking New Energy Group Holdings Ltd. generates revenue through the sale and distribution of its energy-saving products and technologies. Its key revenue streams include the direct sale of renewable energy products, licensing of proprietary technologies, and possibly engaging in strategic partnerships or joint ventures with other companies in the clean energy sector. The company benefits from the growing demand for sustainable energy solutions, government incentives for renewable energy adoption, and an increasing focus on reducing carbon footprints globally. These factors contribute significantly to its earnings, as more businesses and consumers seek environmentally friendly energy alternatives.

Tonking New Energy Group Holdings Ltd. Financial Statement Overview

Summary

Tonking New Energy Group Holdings Ltd. demonstrates strong revenue growth and improving profitability, indicative of a positive financial trajectory. The balance sheet shows moderate leverage with manageable debt levels, but the cash flow statement reveals potential liquidity challenges. While the company is on a positive growth path, cash flow management should be a focal area for sustaining financial health.

Income Statement

The company shows strong revenue growth with a 11.20% increase from the previous year, reflecting a positive trajectory. The gross profit margin stands at 12.44%, and the net profit margin at 4.28%, both indicating reasonable profitability for the industry. The EBIT margin is 5.35% and the EBITDA margin is 6.38%, showcasing operational efficiency improvements.

Balance Sheet

The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.58, which is manageable. The return on equity (ROE) is 12.92%, suggesting effective use of equity to generate profits. The equity ratio is 39.09%, indicating a reasonable level of equity financing. However, the high level of total liabilities may pose a risk.

Cash Flow

The cash flow statement reveals a challenging cash flow position with negative operating cash flow of -60.29 million. Free cash flow also declined significantly, indicating cash generation issues. The free cash flow to net income ratio shows room for improvement, highlighting potential liquidity concerns.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.09B	766.11M	688.97M	240.52M	190.85M	284.89M
Gross Profit	164.73M	96.51M	72.18M	44.40M	16.43M	39.58M
EBITDA	98.21M	48.84M	45.21M	12.37M	-523.00K	22.24M
Net Income	78.38M	32.82M	27.63M	5.50M	-8.63M	6.33M
Balance Sheet
Total Assets	771.06M	649.25M	516.08M	423.19M	381.88M	418.55M
Cash, Cash Equivalents and Short-Term Investments	159.98M	44.32M	54.62M	34.58M	24.43M	119.31M
Total Debt	148.13M	146.46M	98.33M	87.79M	71.46M	104.24M
Total Liabilities	394.98M	376.93M	260.17M	171.33M	145.89M	196.76M
Stockholders Equity	356.73M	253.90M	236.44M	229.63M	213.32M	201.64M
Cash Flow
Free Cash Flow	5.28M	-62.75M	20.92M	9.80M	-60.93M	80.13M
Operating Cash Flow	7.75M	-60.28M	22.07M	14.42M	-60.31M	80.42M
Investing Cash Flow	42.58M	6.87M	-7.27M	-7.51M	-21.00K	291.00K
Financing Cash Flow	78.41M	45.13M	7.12M	6.97M	-38.72M	-36.24M

Tonking New Energy Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.15
• 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:8326, the sentiment is Negative. The current price of 0.15 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.80 is Neutral, neither overbought nor oversold. The STOCH value of 38.57 is Neutral, 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	76 Outperform	HK$186.50M	2.25	23.45%	―	45.29%	175.68%
0987	69 Neutral	HK$345.85M	20.91	0.89%	3.62%	-10.08%	-29.03%
Sector *	67 Neutral	$16.52B	17.14	4.47%	3.56%	4.76%	6.13%
SHUNF		$14.24M	―		―	―	―
SMTLF		$82.18M	―	-22.62%	―	―	―
KOJ5			―	-14.51%	―	―	―
0090	73 Outperform	HK$275.16M	4.24	7.09%	2.33%	1.92%	-16.90%