China Everbright (0257) AI Stock Analysis

• Market Cap: HK$23.28B
• Dividend Yield: 5.83%
• Average Volume (3M): 11.39M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.56
• Revenue Growth: -5.71%
• EPS Growth: -23.74%
• Country: HK
• Employees: 15,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Waste Management
• EPS (TTM): 0.55
• Shares Outstanding: 6,142,975,000
• 10 Day Avg. Volume: 8,155,234
• 30 Day Avg. Volume: 11,385,312
• PEG Ratio: -0.37
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.07
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: ―

China Everbright's stock is moderately attractive. The company's financial performance is mixed, with concerns about declining revenues and liquidity risks. However, technical analysis shows positive momentum, and valuation metrics suggest the stock is undervalued with a high dividend yield. Addressing financial challenges could enhance stock attractiveness further.

China Everbright Business Overview & Revenue Model

Company Description

China Everbright Limited (0257), a subsidiary of China Everbright Group, is a diversified financial services company based in Hong Kong. The company operates across multiple sectors including asset management, investment banking, and wealth management. It provides a wide array of financial products and services such as private equity, asset management, and investment advisory, catering to both institutional and individual clients.

How the Company Makes Money

China Everbright Limited generates revenue through its diversified financial services operations. The company earns income through asset management fees, investment returns, and advisory fees by managing various funds and investment portfolios. It also generates revenue from its investment banking activities, which include underwriting, mergers and acquisitions advisory, and other financial advisory services. Additionally, the company engages in proprietary trading and direct investments, further contributing to its earnings. Strategic partnerships and collaborations with other financial institutions enhance its service offerings and expand its client base, thereby boosting its revenue potential.

China Everbright Financial Statement Overview

Summary

China Everbright shows a mixed financial performance. The income statement reflects declining revenues and margins, the balance sheet indicates high leverage but stable equity growth, and the cash flow statement highlights liquidity challenges. The company needs to address revenue decline and improve cash flow management to strengthen its financial position and reduce financial risks.

Income Statement

The income statement reveals a decline in revenue over recent years, with total revenue decreasing from HK$37.32B in 2022 to HK$30.26B in 2024. This downward trend is a concern. Gross profit margin has been relatively stable, but net profit margin has decreased due to declining net income. The EBIT and EBITDA margins have also seen a decline, indicating pressure on operational efficiency. Overall, the income statement reflects moderate financial health with significant room for improvement.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which can pose risks in volatile markets. Total debt has remained high, although stockholders' equity has seen growth. The equity ratio has improved slightly, suggesting some stability. While the company's assets are substantial, the high level of debt remains a concern. Overall, the balance sheet reveals a mixed picture with both strengths in asset base and weaknesses in leverage.

Cash Flow

Cash flow analysis indicates challenges, with negative free cash flow in most years and operating cash flow inconsistencies. The company has struggled to generate positive cash flow from operations consistently, and capital expenditures have further strained free cash flow. The cash flow statement suggests liquidity issues and the need for improved cash management strategies. Overall, cash flow performance is weak, highlighting potential liquidity risks.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
30.26B	32.09B	37.32B	49.90B	42.93B
	Gross Profit
11.54B	13.81B	14.36B	16.46B	14.10B
	EBIT
7.89B	10.52B	10.60B	13.23B	12.26B
	EBITDA
10.09B	12.80B	12.69B	14.85B	12.63B
	Net Income Common Stockholders
3.38B	4.43B	4.60B	6.80B	6.02B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.97B	8.58B	10.84B	15.27B	10.87B
	Total Assets
186.03B	189.18B	190.60B	200.24B	158.19B
	Total Debt
91.67B	94.62B	94.72B	99.13B	74.98B
	Net Debt
83.77B	86.19B	84.13B	84.08B	64.12B
	Total Liabilities
119.61B	123.66B	128.00B	135.89B	102.64B
	Stockholders Equity
55.01B	48.14B	50.83B	51.78B	45.06B
Cash Flow		Free Cash Flow
0.00	-1.26B	-1.46B	-10.21B	-15.54B
	Operating Cash Flow
0.00	2.50B	4.01B	-1.56B	-8.19B
	Investing Cash Flow
0.00	-3.84B	-6.14B	-10.42B	-8.25B
	Financing Cash Flow
0.00	-549.38M	-1.15B	15.85B	14.97B

China Everbright Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0257, the sentiment is Positive. The current price of 3.79 is above the 20-day moving average (MA) of 3.62, above the 50-day MA of 3.50, and above the 200-day MA of 3.55, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 69.16 is Neutral, neither overbought nor oversold. The STOCH value of 92.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0257.

China Everbright Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3328	80 Outperform	$581.68B	5.44		5.79%	―	0.12%
1398	78 Outperform	$2.57T	5.13		8.80%	-3.41%	-0.73%
3988	77 Outperform	$1.67T	5.40	9.57%	5.77%	6.59%	-0.89%
2628	75 Outperform	HK$987.42B	3.78	22.83%	4.36%	5.96%	124.20%
2318	72 Outperform	$967.82B	6.65		5.74%	11.71%	37.04%
0257	65 Neutral	HK$23.28B	6.89	6.99%	5.83%	-5.71%	-23.74%
Sector *	64 Neutral	$4.39B	11.81	5.17%	249.38%	3.98%	-12.17%

China Everbright Corporate Events

China Everbright Announces 2025 AGM and Key Resolutions

China Everbright Environment Group Limited has announced its Annual General Meeting scheduled for May 29, 2025, where key resolutions will be discussed, including the approval of financial statements, declaration of a final dividend, re-election of directors, and re-appointment of KPMG as auditor. This meeting is significant for stakeholders as it will address leadership continuity and financial strategies, potentially impacting the company’s operational focus and market positioning.

China Everbright Announces Board Change with New Non-Executive Director

China Everbright Environment Group Limited announced a change in its board of directors, with Mr. Pan Jianyun resigning as a non-executive director due to work arrangements, effective April 17, 2025. Ms. Qu Li has been appointed as the new non-executive director, bringing her experience as the deputy general manager of the Overseas Business Management Department of China Everbright Group. This change is expected to align with the company’s strategic goals and enhance its governance structure.

China Everbright Environment Group Reveals Board Composition

China Everbright Environment Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides clarity on the leadership structure, which may impact the company’s strategic direction and governance, potentially influencing stakeholder confidence.

China Everbright Completes Issuance of 2025 Perpetual Medium-term Notes

China Everbright Environment Group Limited has successfully completed the issuance of its 2025 Perpetual Medium-term Notes (Series 1) in the PRC, amounting to RMB1.5 billion with an interest rate of 2.22% per annum. The proceeds from this issuance will be used to redeem the 2022 Perpetual Medium-term Notes (Series 1), indicating a strategic financial maneuver to manage its debt obligations and potentially strengthen its financial position.

China Everbright Announces Board Composition and Roles

China Everbright Environment Group Limited has announced the composition of its board of directors, highlighting the roles and functions of each member. This announcement provides insights into the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.

China Everbright Announces Board Changes

China Everbright Environment Group Limited announced changes to its board of directors and committee compositions, effective March 26, 2025. Mr. Suo Xuquan will resign as an Independent Non-executive Director to spend more time with family, and Professor Zhang Xiang will be appointed as his replacement. Additionally, Mr. Kang Guoming will join the Audit Committee, and Mr. Fan Yan Hok, Philip, will be re-designated as the chairman of the Risk Management Committee. These changes reflect the company’s ongoing commitment to strong governance and strategic leadership.

China Everbright Applies for RMB5 Billion Medium-Term Notes Registration

China Everbright Environment Group Limited has announced that its subsidiary, Everbright Environmental Protection (China) Limited, has applied for the registration of medium-term notes worth up to RMB5 billion with the National Association of Financial Market Institutional Investors. The issuance of these notes, subject to market conditions and approval, will be traded in the China Interbank Bond Market, potentially impacting the company’s financial strategy and market positioning.