Sunpower Group Ltd. (5GD) AI Stock Analysis

• Market Cap: S$190.96M
• Dividend Yield: N/A
• Average Volume (3M): 762.57K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.65
• Revenue Growth: -5.31%
• EPS Growth: -47.29%
• Country: SG
• Employees: 3,096
• Sector: Utilities
• Sector Strength: 85
• Industry: Independent Power Producers
• EPS (TTM): 0.01
• Shares Outstanding: 795,686,160
• 10 Day Avg. Volume: 1,003,700
• 30 Day Avg. Volume: 762,573
• PEG Ratio: -0.28
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 2.30
• 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: 108.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: S$0.50 ▲(108.33% Upside)

Sunpower Group Ltd. presents a mixed investment case. The stock's valuation suggests it may be undervalued, but financial performance concerns, particularly around profitability and leverage, are significant. Technical indicators do not show strong momentum, adding to the cautious outlook.

Sunpower Group Ltd. Business Overview & Revenue Model

Company Description

Sunpower Group Ltd. provides environmental protection solutions in the People's Republic of China, the United States, Canada, India, Southeast Asia, the Middle East, Europe, South America, and Oceania. It operates through Manufacturing & Services and Green Investments segments. The company's Manufacturing & Services segment develops heat exchangers, pressure vessels, heat pipes, heat pipe exchangers, pipeline energy saving, and related environmental protection products. This segment also offers solutions for flare and flare gas recovery system, zero liquid discharge system, petrochemical engineering, energy saving system, desulphurization, and denitrification systems. Its Green Investments segment focuses on the investment, development, and operation of centralized heat, steam, and electricity generation plants. In addition, it offers design, consultancy, and technology services to the thermal power, construction materials, architecture, municipal engineering, and other industries. Further, the company provides design, consultation, and technology services; produces and sells foam glass products; and supplies heat and electricity to enterprises. It serves chemicals, textiles, textile printing and dyeing, food, paper-making, paints, pharmaceuticals, leather, wood processing, plastic recycling, fodder, chemical fertilizers, and rubber industries. Sunpower Group Ltd. was founded in 1997 and is headquartered in Nanjing, the People's Republic of China.

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. shows stable revenues and improved cash flow, but concerns exist regarding profitability and leverage. Operational efficiencies are evident, but leverage risks and declining net income could challenge future profitability.

Income Statement

Sunpower Group Ltd. shows a consistent revenue trend with a slight increase in the most recent year. Gross profit margins are stable, though net profit margin has decreased, indicating rising expenses or cost inefficiencies. The absence of EBIT in the latest year is concerning, but EBITDA margin remains solid, suggesting operational efficiency before accounting for depreciation and amortization.

Balance Sheet

The company has a high debt-to-equity ratio, reflecting potential leverage risk. However, the equity ratio shows a stable percentage of assets financed by equity. Return on equity has declined recently, indicating reduced profitability for shareholders, which could be a concern for investors looking for strong returns.

Cash Flow

Free cash flow has improved significantly, showing strong liquidity and potential for reinvestment. Operating cash flow to net income ratio is robust, suggesting that the company's profits are translating well into cash. The turnaround in free cash flow to net income ratio reflects improved cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.47B	3.51B	3.40B	3.45B	2.90B	4.06B
Gross Profit	911.08M	892.78M	831.56M	513.05M	344.77M	981.49M
EBITDA	866.06M	880.37M	864.02M	504.09M	438.10M	495.39M
Net Income	135.67M	119.44M	175.77M	138.80M	816.20M	-55.55M
Balance Sheet
Total Assets	7.82B	8.31B	7.63B	7.67B	6.60B	8.29B
Cash, Cash Equivalents and Short-Term Investments	832.89M	1.26B	699.35M	635.73M	401.41M	844.88M
Total Debt	4.27B	4.74B	4.36B	4.24B	3.65B	3.88B
Total Liabilities	5.18B	5.76B	5.32B	5.62B	4.75B	6.30B
Stockholders Equity	2.09B	2.01B	1.90B	1.73B	1.59B	1.67B
Cash Flow
Free Cash Flow	475.35M	460.93M	71.11M	-231.13M	-739.89M	-54.37M
Operating Cash Flow	635.11M	622.28M	463.22M	305.17M	223.21M	512.65M
Investing Cash Flow	-176.52M	-187.80M	-423.71M	-624.71M	472.20M	-781.07M
Financing Cash Flow	-392.80M	96.27M	38.32M	506.21M	-831.46M	112.60M

Sunpower Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 0.24 is above the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.24, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 51.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
5GD	62 Neutral	S$190.96M	7.72	6.52%	―	-5.31%	-47.29%
Sector *	56 Neutral	AU$1.97B	7.01	12.22%	3.97%	24.17%	-114.27%
AWAEF	―	$342.93M	2.60	5.83%	16.14%	―	―
BOTRF	―	$556.87M	4.04	8.75%	78.81%	―	―
GLVNF	―	$382.83M	―	-1.18%	―	―	―
566	―	S$78.95M	23.27	2.32%	―	―	―
3UG	―	€437.01M	4.94	8.35%	―	―	―

Sunpower Group Ltd. Corporate Events

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.