Sunpower Group Ltd. (5GD) AI Stock Analysis

• Market Cap: S$338.17M
• Dividend Yield: N/A
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.50
• Revenue Growth: -5.31%
• EPS Growth: -47.29%
• Country: SG
• Employees: 3,096
• Sector: Utilities
• Sector Strength: 62
• Industry: Independent Power Producers
• EPS (TTM): 0.01
• Shares Outstanding: 795,686,160
• 10 Day Avg. Volume: 2,778,790
• 30 Day Avg. Volume: 2,072,336
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: S$0.50
• Price Target Upside: 19.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: S$0.50 ▲(19.05% Upside)

Sunpower Group Ltd. scores a 66, driven primarily by its robust cash flow management and positive technical indicators. The stock shows bullish momentum, although it is currently overbought. Financial performance is mixed, with strong operational efficiency but challenges in revenue growth and high leverage. The valuation is reasonable, but the lack of a dividend yield may deter income-focused investors.

Sunpower Group Ltd. Business Overview & Revenue Model

Company Description

Sunpower Group Ltd. (5GD) is a leading environmental protection solutions company, specializing in energy-saving and environmental protection products and services. The company operates primarily in the sectors of energy conservation and environmental protection, offering products such as heat pipes, heat exchangers, and pressure vessels. Sunpower Group is also involved in providing integrated solutions for the reduction of emissions and energy savings, catering to industries like petrochemical, steel, and power generation.

How the Company Makes Money

Sunpower Group Ltd. generates revenue through the sale of its energy-saving and environmental protection products, like heat pipes and heat exchangers, which are essential for industrial applications. The company also earns a significant portion of its income from providing comprehensive environmental protection services and solutions that focus on reducing emissions and conserving energy in various industries. Additionally, Sunpower Group has established key partnerships and collaborations with industry leaders to enhance its market presence and expand its service offerings, thereby contributing to its revenue streams.

Sunpower Group Ltd. Financial Statement Overview

Summary

Sunpower Group Ltd. presents a mixed financial picture. The income statement shows operational efficiency but struggles with revenue growth and net profitability. The balance sheet indicates high leverage, posing potential financial risks. However, the cash flow statement is robust, with strong free cash flow growth and effective cash management. The company needs to address revenue growth and leverage to enhance its financial stability and profitability.

Income Statement

Sunpower Group Ltd. shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 26.24%, indicating efficient cost management. However, the net profit margin is relatively low at 3.91%, reflecting challenges in translating revenue into profit. The revenue growth rate is negative at -2.95%, suggesting a decline in sales compared to the previous period. EBIT and EBITDA margins are strong at 17.18% and 24.94%, respectively, highlighting operational efficiency despite revenue challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.05, indicating significant leverage and potential financial risk. Return on equity (ROE) is modest at 6.68%, suggesting limited profitability relative to shareholder equity. The equity ratio stands at 27.78%, showing a moderate level of equity financing. Overall, the balance sheet reflects a leveraged position with moderate returns on equity.

Cash Flow

Cash flow analysis shows positive trends, with a free cash flow growth rate of 21.36%, indicating improved cash generation. The operating cash flow to net income ratio is 0.22, suggesting reasonable cash flow relative to net income. The free cash flow to net income ratio is strong at 0.75, reflecting effective cash conversion. Overall, the cash flow statement demonstrates healthy cash generation and management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.37B	3.51B	3.40B	3.45B	2.90B	4.06B
Gross Profit	893.17M	892.78M	831.56M	513.05M	344.77M	981.49M
EBITDA	854.00M	880.37M	864.02M	504.09M	438.10M	495.39M
Net Income	135.55M	119.44M	175.77M	138.80M	816.20M	-55.55M
Balance Sheet
Total Assets	7.75B	8.31B	7.63B	7.67B	6.60B	8.29B
Cash, Cash Equivalents and Short-Term Investments	753.88M	1.26B	699.35M	635.73M	401.41M	844.88M
Total Debt	4.11B	4.74B	4.36B	4.24B	3.65B	3.88B
Total Liabilities	5.01B	5.76B	5.32B	5.62B	4.75B	6.30B
Stockholders Equity	2.15B	2.01B	1.90B	1.73B	1.59B	1.67B
Cash Flow
Free Cash Flow	576.89M	460.93M	71.11M	-231.13M	-739.89M	-54.37M
Operating Cash Flow	747.19M	622.28M	463.22M	305.17M	223.21M	512.65M
Investing Cash Flow	-144.22M	-187.80M	-423.71M	-624.71M	472.20M	-781.07M
Financing Cash Flow	-446.78M	96.27M	38.32M	506.21M	-831.46M	112.60M

Sunpower Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5GD, the sentiment is Positive. The current price of 0.42 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.28, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 84.90 is Negative, neither overbought nor oversold. The STOCH value of 76.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:5GD.

Sunpower Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	$17.25B	17.87	5.54%	3.65%	6.63%	11.55%
5GD	66 Neutral	S$338.17M	13.67	6.52%	―	-5.31%	-47.29%
AWAEF	―	$350.11M	2.60	5.83%	10.57%	―	―
BOTRF	―	$544.43M	3.65	8.29%	9.49%	―	―
GLVNF	―	$347.97M	―	-1.18%	―	―	―
566	―	S$81.56M	24.04	2.32%	―	―	―
3UG	―	€440.58M	4.18	10.29%	―	―	―

Sunpower Group Ltd. Corporate Events

Sunpower Group Ltd. Transitions to Bi-Annual Financial Reporting

Sunpower Group Ltd. has announced a shift in its financial reporting strategy, moving from quarterly to bi-annual reporting of unaudited financial results. This change is intended to allow the company to concentrate more on its core business operations and strategic development, while providing investors with a more comprehensive view of the company’s performance and growth trends. The company assures stakeholders that it will continue to update them on significant developments in compliance with listing requirements.

Sunpower Group Secures RMB135.2 Million Biomass Subsidy for Xintai Project

Sunpower Group Ltd. announced that its subsidiary, Xintai Zhengda Thermoelectric Co., Ltd., received RMB135.2 million in biomass subsidies from the State Grid Corporation of China for its Xintai Project. This subsidy, part of China’s national policy to support renewable energy, endorses Sunpower’s efforts in renewable energy and aligns with its strategy to transform into an AI-driven intelligent energy services provider. The company plans to focus on AI-empowered energy solutions, including geothermal energy and biomass, although the subsidy is not expected to materially impact its financials for the year ending December 2025.

Sunpower Group Ltd. Enters Strategic Collaboration with Jining Energy

Sunpower Group Ltd.’s subsidiary, Jiangsu Sunpower Clean Energy Co., Ltd., has entered into a strategic collaboration with Jining Energy Development Group, a key state-owned enterprise in Shandong Province, China. This partnership aims to support China’s ‘Dual Carbon’ goals by promoting clean, efficient, and integrated energy solutions, leveraging both parties’ strengths in renewable energy and advanced manufacturing. The collaboration is expected to drive the green transformation of the regional energy structure and enhance Sunpower’s growth strategy and leadership in the sector, although it will not materially impact the company’s financials for the year ending December 2025.

Sunpower Group Expands Steam Supply Operations with New Agreements

Sunpower Group Ltd. has announced that its subsidiary, Lianshui Sunpower Clean Energy Co., Ltd., has entered into a supplementary agreement and a steam supply agreement with China Energy (Jiangsu Huai’an) Energy Development Co., Ltd. This development is part of the Lianshui Project, a centralized steam build-operate-transfer project in the Jiangsu Lianshui Economic Development Zone. The agreements follow negotiations with the County Government and China Energy Jiangsu, aiming to enhance steam supply operations and explore potential collaborations for a new steam generation facility in Lianshui County. This move is expected to strengthen Sunpower’s operational capabilities and market position in the region.

Sunpower Group Ltd. Completes Bond Redemption and Restructures Board

Sunpower Group Ltd. held its 2025 Annual General Meeting, where the company announced the completion of a rights issue of convertible bonds and the full redemption of previous bonds. The meeting also marked the stepping down of two board members, Mr. Li Lei and Ms. Wang Guannan, and the appointment of new directors, Ms. Pan Shuhong and Mr. Ngoo Lin Fong. The company is now positioned to focus on its corporate strategy and enter the next stage of development.

Sunpower Group Ltd. Proposes Share Buy-Back Mandate Renewal

Sunpower Group Ltd. held a Special General Meeting to discuss the renewal of its share buy-back mandate. The meeting, chaired by Mr. Guo Hong Xin, was conducted with a quorum present and adhered to the Singapore Exchange’s voting regulations. The resolution for the renewal of the share buy-back mandate was proposed, seconded, and voted on by poll, with no substantial questions raised by shareholders.