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Northeast Electric Development Co., Ltd. Class H (HK:0042)
:0042
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Northeast Electric Development Co., Ltd. Class H (0042) AI Stock Analysis

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HK:0042

Northeast Electric Development Co., Ltd. Class H

(0042)

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Neutral 41 (OpenAI - Gpt-5.6Sol)
Rating:41Neutral
Price Target:
HK$0.21
▼(-25.36% Downside)
Action:Reiterated
Date:06/18/26
The score is primarily driven down by weak financial performance (persistent losses, negative equity, and recent cash burn). Technicals add further pressure with a clear downtrend and negative momentum. Valuation does not provide support because the negative P/E reflects ongoing losses and no dividend yield is available.
Positive Factors
Reported Revenue Growth
The reported 23.7% revenue-growth figure indicates that the business has demonstrated capacity to expand its top line. Although other periods were volatile, this growth provides a foundation for recovery if management can convert sales into more consistent operating earnings.
Negative Factors
Persistent Negative Equity
A continuing shareholders’ equity deficit signals accumulated losses and materially weakens solvency. It limits financial flexibility, makes leverage metrics less meaningful, and can constrain the company’s ability to fund operations or pursue growth without additional support.
Read all positive and negative factors
Positive Factors
Negative Factors
Reported Revenue Growth
The reported 23.7% revenue-growth figure indicates that the business has demonstrated capacity to expand its top line. Although other periods were volatile, this growth provides a foundation for recovery if management can convert sales into more consistent operating earnings.
Read all positive factors

Northeast Electric Development Co., Ltd. Class H (0042) vs. iShares MSCI Hong Kong ETF (EWH)

Northeast Electric Development Co., Ltd. Class H Business Overview & Revenue Model

Company Description
Northeast Electric Development Company Limited functions as an investment holding firm, primarily concentrating on the research, design, development, manufacturing, and distribution of power transmission and transformation equipment throughout the...

Northeast Electric Development Co., Ltd. Class H Financial Statement Overview

Summary
Weak fundamentals: volatile revenue with a sharp 2023 drop, persistent operating losses, and a very large latest-period net loss (around -50% net margin). Balance sheet risk is high due to negative shareholders’ equity across periods. Cash flow is also pressured with negative operating and free cash flow in 2023–2025, indicating ongoing cash burn and rising liquidity risk.
Income Statement
18
Very Negative
Balance Sheet
9
Very Negative
Cash Flow
14
Very Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue197.64M164.17M156.44M110.43M161.00M119.48M
Gross Profit54.74M50.24M46.08M51.23M92.22M68.82M
EBITDA-5.06M-6.81M-7.34M4.97M-26.11M35.98M
Net Income-79.58M-82.70M-10.11M-5.96M-25.14M17.63M
Balance Sheet
Total Assets208.26M196.63M182.46M181.53M181.48M194.43M
Cash, Cash Equivalents and Short-Term Investments7.14M10.57M15.21M6.44M9.95M36.55M
Total Debt0.006.98M6.99M7.91M6.91M40.38M
Total Liabilities482.64M473.01M391.88M380.76M374.51M361.96M
Stockholders Equity-276.32M-278.36M-211.46M-201.22M-195.06M-169.70M
Cash Flow
Free Cash Flow-3.43M-16.92M-5.79M-3.78M6.98M5.35M
Operating Cash Flow-3.33M-16.43M-5.60M-3.77M7.14M5.43M
Investing Cash Flow-106.03K-121.76K11.12M-474.00K89.00K5.41M
Financing Cash Flow0.008.40M3.38M927.00K-12.96M-3.74M

Northeast Electric Development Co., Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.28
Price Trends
50DMA
0.25
Negative
100DMA
0.31
Negative
200DMA
0.32
Negative
Market Momentum
MACD
>-0.01
Negative
RSI
38.31
Neutral
STOCH
68.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0042, the sentiment is Negative. The current price of 0.28 is above the 20-day moving average (MA) of 0.24, above the 50-day MA of 0.25, and below the 200-day MA of 0.32, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.31 is Neutral, neither overbought nor oversold. The STOCH value of 68.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0042.

Northeast Electric Development Co., Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
48
Neutral
HK$65.92M2.405.71%3.86%
41
Neutral
HK$215.72M-2.3728.70%23.71%-722.31%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0042
Northeast Electric Development Co., Ltd. Class H
0.23
-0.08
-25.25%
HK:0559
DeTai New Energy Group
0.13
-0.06
-32.98%

Northeast Electric Development Co., Ltd. Class H Corporate Events

Northeast Electric Posts Modest Interim Loss and Withholds Dividends
Aug 27, 2026
Northeast Electric Development Co., Ltd. reported unaudited interim results for the six months ended 30 June 2026, with consolidated turnover of RMB110.76 million under IFRS. The announcement follows review and approval by the audit committee and ...
Northeast Electric Development Sets Board Meeting to Approve 2026 Interim Results
Aug 13, 2026
Northeast Electric Development Co., Ltd. has scheduled a board meeting to be held in Haikou, Hainan Province, on 27 August 2026. The board will review and approve the company’s interim results for the first half of 2026, a key governance ste...
Northeast Electric Updates Plan to Resolve Auditor’s Disclaimer and Litigation Liabilities
Jul 29, 2026
Northeast Electric Development has provided a quarterly update on measures to address its auditor’s disclaimer of opinion on the 2025 consolidated financial statements, which centered on going-concern uncertainties. The group reports it curr...
Northeast Electric Faces Court Enforcement on RMB 63.97 Million Judgment
Jul 3, 2026
Northeast Electric Development has received an enforcement notice from the Heping District People’s Court in Shenyang, following a finalized second-instance civil judgment in a dispute over a creditor’s rights assignment with Liaoning ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2026