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

• Market Cap: HK$220.86M
• Dividend Yield: N/A
• Average Volume (3M): 824.90K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.02
• Revenue Growth: 34.44%
• EPS Growth: 83.60%
• Country: HK
• Employees: 168
• Sector: Utilities
• Sector Strength: 81
• Industry: Renewable Utilities
• EPS (TTM): 0.01
• Shares Outstanding: 1,227,000,000
• 10 Day Avg. Volume: 927,500
• 30 Day Avg. Volume: 824,900
• PEG Ratio: 0.03
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is driven primarily by strong financial performance and attractive valuation. The company's solid profitability and cash flow metrics, combined with a low P/E ratio, suggest a strong potential for growth. However, technical indicators point to overbought conditions, which could lead to short-term volatility.

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 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.09B	1.03B	766.11M	688.97M	240.52M	190.85M
Gross Profit	164.73M	154.41M	96.51M	72.18M	44.40M	16.43M
EBITDA	98.21M	94.20M	48.84M	45.21M	12.37M	-523.00K
Net Income	78.38M	71.65M	32.82M	27.63M	5.50M	-8.63M
Balance Sheet
Total Assets	771.06M	806.59M	649.25M	516.08M	423.19M	381.88M
Cash, Cash Equivalents and Short-Term Investments	159.98M	80.67M	44.32M	54.62M	34.58M	24.43M
Total Debt	148.13M	146.06M	146.46M	98.33M	87.79M	71.46M
Total Liabilities	394.98M	430.78M	376.93M	260.17M	171.33M	145.89M
Stockholders Equity	356.73M	357.20M	253.90M	236.44M	229.63M	213.32M
Cash Flow
Free Cash Flow	5.28M	49.03M	-62.75M	20.92M	9.80M	-60.93M
Operating Cash Flow	7.75M	51.18M	-60.28M	22.07M	14.42M	-60.31M
Investing Cash Flow	42.58M	-39.65M	6.87M	-7.27M	-7.51M	-21.00K
Financing Cash Flow	78.41M	25.40M	45.13M	7.12M	6.97M	-38.72M

Tonking New Energy Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8326, the sentiment is Positive. The current price of 0.18 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.16, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 86.52 is Negative, neither overbought nor oversold. The STOCH value of 84.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	73 Outperform	HK$220.86M	2.56	23.45%	―	34.44%	83.60%
0987	65 Neutral	HK$348.36M	21.06	0.89%	3.11%	-10.08%	-29.03%
Sector *	61 Neutral	HK$29.69B	9.20	5.12%	4.66%	-3.22%	3.60%
0090	58 Neutral	HK$875.93M	13.49	7.09%	0.74%	1.92%	-16.90%
1165	50 Neutral	$132.14M	―		―	-34.52%	5.78%
0451	50 Neutral	$676.13M	―	-22.62%	―	30.60%	68.16%
0295	44 Neutral	€224.47M	―	-14.51%	―	―	―