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China Everbright (HK:0257)
:0257
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China Everbright (0257) AI Stock Analysis

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HK:0257

China Everbright

(0257)

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Neutral 66 (OpenAI - 4o)
Rating:66Neutral
Price Target:
HK$5.50
▲(11.79% Upside)
The overall stock score of 66 reflects a balance between mixed financial performance and favorable technical and valuation indicators. The company's financials show challenges with declining revenues and high leverage, but the technical analysis indicates strong market momentum. The valuation suggests potential undervaluation with an attractive dividend yield, making it appealing for value investors.

China Everbright (0257) vs. iShares MSCI Hong Kong ETF (EWH)

China Everbright Business Overview & Revenue Model

Company DescriptionChina Everbright Environment Group Limited, provides environmental solutions worldwide. The company's Environmental Energy Project Construction and Operation segment constructs and operates food waste and leachate treatment, sludge treatment and disposal, methane-to-energy, fecal treatment, fly ash landfill, medical waste treatment, and solid waste treatment projects, as well as waste-to-energy plants. Its Greentech Project Construction and Operation segment constructs and operates integrated biomass utilization, hazardous and solid waste treatment, and solar energy and wind power projects, as well as offers environmental remediation services. The company's Environmental Water Project Construction and Operation segment constructs, upgrades, and operates waste water treatment, water supply, reusable water and sludge harmless treatment, sponge city construction, river-basin ecological restoration, waste water source heat pump, and leachate treatment projects. This segment also researches and develops water environment technologies and engineering projects. Its Others segment conducts environmental protection technology research and development projects; provides environmental related technological, and protection project equipment construction and installation services; designs environmental protection projects; and sells related equipment. This segment also offers waste sorting, renewable resources utilization, and sanitation operation services; sells energy-saving street lamps; and provides energy management contract projects. It also operates biomass electricity and heat cogeneration projects; and collects and treats municipal wastes. The company was formerly known as China Everbright International Limited and changed its name to China Everbright Environment Group Limited in September 2020. The company was incorporated in 1961 and is headquartered in Hong Kong, Hong Kong.
How the Company Makes MoneyChina Everbright generates revenue through multiple channels, primarily from its investment activities. Key revenue streams include management fees from its private equity and public market funds, performance fees based on the success of its investments, and returns from its direct investments in projects related to environmental protection and infrastructure. The company also earns income from advisory services provided to clients in sectors aligned with its investment strategy. Significant partnerships with government entities and private sector firms enhance its project portfolio and revenue potential, while its focus on sustainable investments positions it favorably in the growing green finance market.

China Everbright Financial Statement Overview

Summary
China Everbright's financial performance shows declining revenues and margins, high leverage, and liquidity challenges. Despite stable equity growth, the company needs to address these issues to improve its financial health.
Income Statement
56
Neutral
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
62
Positive
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
48
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue28.95B30.26B32.09B37.32B49.90B42.93B
Gross Profit11.82B11.54B13.81B14.36B16.46B14.10B
EBITDA10.82B10.09B12.80B12.69B14.85B12.63B
Net Income3.13B3.38B4.43B4.60B6.80B6.02B
Balance Sheet
Total Assets192.23B186.03B189.18B190.60B200.24B158.19B
Cash, Cash Equivalents and Short-Term Investments8.76B7.97B8.58B10.84B15.27B10.87B
Total Debt93.49B91.67B94.62B94.72B99.13B74.98B
Total Liabilities121.69B119.61B123.66B128.00B135.89B102.64B
Stockholders Equity58.47B55.01B53.85B50.83B51.78B45.06B
Cash Flow
Free Cash Flow5.32B4.42B-1.26B-1.46B-10.21B-15.54B
Operating Cash Flow6.06B6.78B2.50B4.01B-1.56B-8.19B
Investing Cash Flow-1.88B-2.16B-3.84B-6.14B-10.42B-8.25B
Financing Cash Flow-2.08B-5.03B-549.38M-1.15B15.85B14.97B

China Everbright Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.92
Price Trends
50DMA
4.53
Positive
100DMA
4.24
Positive
200DMA
3.77
Positive
Market Momentum
MACD
0.12
Negative
RSI
63.10
Neutral
STOCH
57.86
Neutral
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 4.92 is above the 20-day moving average (MA) of 4.71, above the 50-day MA of 4.53, and above the 200-day MA of 3.77, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 63.10 is Neutral, neither overbought nor oversold. The STOCH value of 57.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0257.

China Everbright Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$10.01B7.578.29%4.28%1.66%-6.08%
HK$10.02B10.268.43%6.27%-1.72%15.75%
HK$3.59B7.705.55%7.42%-4.41%-34.31%
$30.59B9.586.19%4.88%-7.82%-23.62%
-15.70%-13.49%
$10.79B15.437.44%2.01%2.89%-14.66%
$5.24B-3.13-22.14%-4.51%-1.78%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0257
China Everbright
4.92
1.33
36.93%
HK:0895
Dongjiang Environmental Company
2.48
0.08
3.33%
HK:1065
Tianjin Capital Environmental Protection Group Co
4.49
1.46
47.99%
HK:1381
Canvest Environmental Protection Group Co. Ltd.
4.88
0.49
11.16%
HK:1330
Dynagreen Environmental Protection Group Co., Ltd. Class H
5.24
2.21
72.65%
HK:1272
Datang Environment Industry Group Co., Ltd. Class H
1.21
0.27
28.72%

China Everbright Corporate Events

China Everbright Forms Joint Ventures for Uzbekistan Waste-to-Energy Projects
Oct 16, 2025

China Everbright Environment Group Limited has announced the formation of joint ventures with Maxsus and CR No.17 Second Engineering to establish two project companies in Uzbekistan. These companies will focus on the investment, design, construction, operation, and maintenance of a waste-to-energy project, with China Everbright International holding an 88% stake in each. The financial results of these joint ventures will be consolidated into China Everbright’s financial statements, enhancing its presence in the sustainable energy sector.

The most recent analyst rating on (HK:0257) stock is a Buy with a HK$5.70 price target. To see the full list of analyst forecasts on China Everbright stock, see the HK:0257 Stock Forecast page.

China Everbright Seeks Approval for RMB4 Billion Asset-Backed Notes Issuance
Oct 16, 2025

China Everbright Environment Group Limited has announced its application to the National Association of Financial Market Institutional Investors for the registration and proposed issuance of asset-backed notes worth up to RMB4 billion. The issuance, aimed at institutional investors in the national inter-bank bond market, will be conducted by its subsidiary, Everbright Environmental Protection (China) Limited, and is subject to market conditions and approval by the NAFMII. An underwriting agreement has been signed with Everbright Securities to facilitate this process, with the terms deemed fair and beneficial for the company and its shareholders.

The most recent analyst rating on (HK:0257) stock is a Buy with a HK$5.70 price target. To see the full list of analyst forecasts on China Everbright stock, see the HK:0257 Stock Forecast page.

China Everbright Announces Changes in Risk Management Committee
Oct 10, 2025

China Everbright Environment Group Limited has announced a change in its Risk Management Committee, with Ms. Li Shuk Yin, Edwina stepping down and Mr. Kang Guoming being appointed as a new member, effective from October 10, 2025. This change reflects the company’s ongoing efforts to strengthen its governance and risk management practices, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:0257) stock is a Buy with a HK$5.70 price target. To see the full list of analyst forecasts on China Everbright stock, see the HK:0257 Stock Forecast page.

China Everbright Announces Board Composition and Roles
Oct 10, 2025

China Everbright Environment Group Limited announced the composition of its board of directors and the roles within its five established board committees. This update reflects the company’s commitment to structured governance and may influence its strategic direction and stakeholder engagement, particularly in areas like sustainability and risk management.

The most recent analyst rating on (HK:0257) stock is a Buy with a HK$5.70 price target. To see the full list of analyst forecasts on China Everbright stock, see the HK:0257 Stock Forecast page.

China Everbright Reports Decline in H1 2025 Earnings
Aug 26, 2025

China Everbright Environment Group Limited, a Hong Kong-based company, operates in the environmental protection sector, focusing on waste-to-energy, water treatment, and greentech projects across China and internationally. In its latest earnings report for the first half of 2025, the company reported a decrease in revenue by 8% to HK$14.3 billion and a 10% drop in profit attributable to equity holders, reflecting challenges in the construction services segment. Despite these declines, the company increased its interim dividend to HK15.0 cents per share, indicating a commitment to shareholder returns. Key financial metrics showed a decrease in EBITDA by 8% and a reduction in profit before tax by 5%, while the company maintained a strong cash position with HK$8.842 billion on hand. Looking ahead, China Everbright aims to continue its strategic focus on technology, international expansion, and industry ecosystem development, with plans to enhance its market presence and operational efficiency.

China Everbright Announces New Company Secretary Appointment
Aug 22, 2025

China Everbright Environment Group Limited has announced a change in its company secretary and alternate authorised representative, effective from 15 September 2025. Ms. Poon Yuen Ling has resigned due to retirement, and Ms. Liang Yanyu has been appointed as her successor. Ms. Liang brings extensive experience in Hong Kong commercial law and corporate finance, which is expected to strengthen the company’s governance and compliance capabilities.

The most recent analyst rating on (HK:0257) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Everbright stock, see the HK:0257 Stock Forecast page.

China Everbright Reports Decline in H1 2025 Revenue and Profit
Aug 22, 2025

China Everbright Environment Group Limited reported a decrease in revenue and profit for the first half of 2025, with revenue down by 8% and profit attributable to equity holders decreasing by 10%. Despite the decline in financial performance, the company increased its interim dividend to HK15.0 cents per share, indicating a commitment to returning value to shareholders.

The most recent analyst rating on (HK:0257) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Everbright stock, see the HK:0257 Stock Forecast page.

China Everbright Declares Interim Dividend for 2025
Aug 22, 2025

China Everbright Environment Group Limited has announced an interim dividend of HKD 0.15 per share for the six months ending June 30, 2025. The dividend payment reflects the company’s ongoing commitment to delivering shareholder value and underscores its stable financial performance amidst its strategic focus on environmental solutions. The ex-dividend date is set for September 22, 2025, with the payment scheduled for October 20, 2025.

The most recent analyst rating on (HK:0257) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on China Everbright stock, see the HK:0257 Stock Forecast page.

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: Oct 23, 2025