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Northeast Electric Development Co., Ltd. Class H (0042) AI Stock Analysis
Northeast Electric Development Co., Ltd. Class H
(HKEX:0042)
The score is primarily constrained by severe losses, deeply negative equity, and ongoing cash burn. Weak technical positioning and a negative P/E ratio provide additional downside signals, resulting in a very weak overall stock assessment.
Northeast Electric Development Co., Ltd. Class H (0042) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 149.35M
- Dividend Yield
- ―
- Average Volume (3M)
- 143.80K
- Price to Earnings (P/E)
- -1.6
- Beta (1Y)
- 0.71
- Revenue Growth
- 23.71%
- EPS Growth
- -722.31%
- Country
- Hong Kong
- Employees
- 282
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Travel Lodging
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 Pe...
Northeast Electric Development Co., Ltd. Class H Financial Statement Overview
Summary
Severe financial distress: 2025 revenue declined 3.5%, gross margin fell to 31%, net loss reached 80M, equity was negative 278M, and operating cash flow was negative 16M. Low debt and modest asset growth provide limited support.
Income Statement
22NegativeBalance Sheet
15Very NegativeCash Flow
28Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 197.64M | 164.17M | 156.44M | 110.43M | 161.00M | 119.48M |
| Gross Profit | 54.74M | 50.24M | 46.08M | 51.23M | 92.22M | 68.82M |
| EBITDA | -1.46M | 287.00K | -651.00K | 4.97M | -11.51M | ― |
| Net Income | -79.58M | -82.70M | -10.11M | -5.96M | -25.14M | 17.63M |
Balance Sheet | ||||||
| Total Assets | 208.26M | 196.63M | 182.46M | 181.53M | 181.48M | 194.43M |
| Cash, Cash Equivalents and Short-Term Investments | 7.14M | 10.57M | 15.21M | 6.44M | 9.95M | 36.55M |
| Total Debt | 0 | 6.98M | 6.99M | 7.91M | 6.91M | 40.38M |
| Total Liabilities | 482.64M | 473.01M | 391.88M | 380.76M | 374.51M | 361.96M |
| 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 | -3.78M | 6.98M | 5.35M |
| Operating Cash Flow | -3.33M | -16.43M | -5.60M | -3.77M | 7.14M | 5.43M |
| Investing Cash Flow | -106.03K | -121.76K | 11.12M | -474.00K | 89.00K | 5.41M |
| Financing Cash Flow | 0 | 8.40M | 3.38M | 927.00K | -12.96M | -3.74M |
Northeast Electric Development Co., Ltd. Class H Technical Analysis
Price Trends
Market Momentum
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 0.17 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.22, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 33.12 is Neutral, neither overbought nor oversold. The STOCH value of 7.53 is Positive, 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
HK:055948Neutral- HK:004240Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| HK:0559 | 48Neutral | HKD 65.92M | 2.40 | 5.71% | ― | -8.39% | -125.08% |
| HK:0042 | 40Underperform | HKD 149.35M | -1.62 | 28.70% | ― | 23.71% | -722.31% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:0042 | Northeast Electric Development Co., Ltd. Class H | 0.17 | -0.09 | -35.47% | |
| HK:0559 | DeTai New Energy Group | 0.13 | -0.05 | -28.00% |
Northeast Electric Development Co., Ltd. Class H Corporate Events
Northeast Electric Updates Plan to Resolve Audit Disclaimer and Litigation Risks
Northeast Electric Development has outlined progress on its action plan to address the auditor’s disclaimer of opinion on its 2025 consolidated results, which stemmed from multiple uncertainties over its ability to continue as a going concern....
Northeast Electric Posts Modest Interim Loss and Withholds Dividends
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 the...
Northeast Electric Development Sets Board Meeting to Approve 2026 Interim Results
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 step t...
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: Oct 14, 2026