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China High Speed Transmission Equipment Group Co (0658) AI Stock Analysis

HK:0658

China High Speed Transmission Equipment Group Co

(HKEX:0658)

Select Model
Rating:46Neutral
Price Target:HKD 1.00â–¼(-15.25% Downside)
Action:reiterated
Date:10/03/26

Weak financial performance and bearish technical signals are the primary drags on the score, partially offset by favorable valuation metrics from the low P/E ratio.

Positive Factors
Profitability reboundReturning to positive operating profit and net income after the 2024 collapse shows a meaningful operating recovery. Improved margins can rebuild internal funding capacity and support customer confidence, although durability depends on converting the rebound into consistent earnings over coming periods.
Negative Factors
Declining revenueTwo consecutive years of revenue contraction indicate continuing demand or volume pressure rather than a temporary fluctuation. Lower sales reduce operating leverage and make it harder to sustain margins, invest in product capabilities, or demonstrate that the recent earnings recovery is durable.

China High Speed Transmission Equipment Group Co (0658) vs. iShares MSCI Hong Kong ETF (EWH)

-60%-40%-20%0%20%40%60%HK:0658-33.71%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 214.42M
Dividend Yield
―
Average Volume (3M)
153.47K
Price to Earnings (P/E)
4.4
Beta (1Y)
0.50
Revenue Growth
-18.58%
EPS Growth
―
Country
Hong Kong
Employees
8,310
Sector
Industrials
Sector Strength
63
Industry
Industrial - Machinery

China High Speed Transmission Equipment Group Co Business Overview & Revenue Model

Company Description

China High Speed Transmission Equipment Group Co., Ltd. is a manufacturer specializing in robust, high-performance gears for wind turbine gearboxes and various transmission systems, serving both domestic and international markets. The company's prima...

How the Company Makes Money

The company makes money primarily by selling transmission equipment—most importantly gearboxes and drivetrain components—produced by its manufacturing operations. Key revenue streams generally include: (1) Original equipment sales: revenue from suppl...

China High Speed Transmission Equipment Group Co Financial Statement Overview

Summary

Income statement reflects revenue declines and losses, balance sheet shows rising debt, and cash flows are volatile, leading to weak overall financials.

Income Statement

35Negative

Balance Sheet

28Negative

Cash Flow

45Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue17.01B19.22B22.08B24.08B21.08B20.21B
Gross Profit4.17B4.16B3.29B3.39B3.26B3.19B
EBITDA2.41B2.46B-732.55M2.04B1.94B2.19B
Net Income373.95M205.74M-6.56B95.52M101.60M1.32B
Balance Sheet
Total Assets38.91B39.24B37.71B41.70B41.63B29.64B
Cash, Cash Equivalents and Short-Term Investments11.03B12.27B7.23B7.44B8.62B6.78B
Total Debt14.38B15.14B9.17B9.49B7.84B4.00B
Total Liabilities25.38B25.89B25.15B27.79B28.04B15.87B
Stockholders Equity8.45B8.46B8.40B10.27B10.48B13.40B
Cash Flow
Free Cash Flow1.45B2.07B-2.26B-2.14B-1.70B-2.62B
Operating Cash Flow2.24B3.17B-143.38M352.04M906.61M-1.48B
Investing Cash Flow-369.65M-1.19B-1.11B-303.35M-5.46B-25.37M
Financing Cash Flow-417.06M-180.94M-516.83M1.18B5.57B2.64B

China High Speed Transmission Equipment Group Co Technical Analysis

Technical Analysis SentimentPositive
Last Price1.18

Price Trends

50DMA1.06Positive
100DMA1.19Negative
200DMA1.57Negative

Market Momentum

MACD0.00Negative
RSI67.76Neutral
STOCH36.25Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0658, the sentiment is Positive. The current price of 1.18 is above the 20-day moving average (MA) of 1.05, above the 50-day MA of 1.06, and below the 200-day MA of 1.57, indicating a neutral trend. The MACD of 0.00 indicates Negative momentum. The RSI at 67.76 is Neutral, neither overbought nor oversold. The STOCH value of 36.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0658.

China High Speed Transmission Equipment Group Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:0658 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:1133HK:113363NeutralHKD 25.02B6.3618.22%3.63%13.48%55.89%
HK:2338HK:233863NeutralHKD 205.08B13.6413.43%4.37%13.66%13.88%
HK:2722HK:272260NeutralHKD 5.18B4.5910.15%9.79%19.90%67.16%
HK:1286HK:128658NeutralHKD 11.23B13.7312.98%2.78%19.63%16.42%
HK:2727HK:272754NeutralHKD 94.61B68.311.18%0.68%21.96%38.42%
HK:0658HK:065846NeutralHKD 1.93B4.364.42%―-18.58%―

* Industrials Sector Average

Performance Comparison

-50%0%50%100%150%HK:0658HK:2727HK:2338HK:2722HK:1133HK:1286Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:0658 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:0658China High Speed Transmission Equipment Group Co 1.18-0.57-32.57%
HK:2727Shanghai Electric Group Company Class H2.40-2.28-48.71%
HK:2338Weichai Power Co Class H23.526.9241.70%
HK:2722Chongqing Machinery & Electric Co. Ltd. Class H1.41-0.40-22.07%
HK:1133Harbin Electric Co. Ltd. Class H11.19-1.66-12.93%
HK:1286Impro Precision Industries Limited5.760.8817.99%

China High Speed Transmission Equipment Group Co Corporate Events

China High Speed Transmission Strengthens Governance with Director Training

Sep 9, 2026

China High Speed Transmission Equipment Group Co., Ltd. has completed specialised training for its directors and senior management, delivered by its Hong Kong legal advisers, focusing on identifying and managing connected persons and connected transa...

China High Speed Transmission Lifts Profit and Margins Despite Revenue Slump

Aug 27, 2026

China High Speed Transmission Equipment Group reported a sharp 24.6% year-on-year decline in revenue to RMB7.52 billion for the six months ended 30 June 2026, while gross profit fell only slightly and the gross margin improved markedly to 24.2% from...

China High Speed Transmission Updates Auditor Name After Rebranding

Aug 25, 2026

China High Speed Transmission Equipment Group Co., Ltd. has announced a change in the name of its external auditor, reflecting a rebranding of the firm rather than a change in audit provider. The auditor’s English name has been updated from Pri...

China High Speed Transmission Schedules Board Meeting on Interim Results and Dividend

Aug 17, 2026

China High Speed Transmission Equipment Group Co., Ltd. has announced that its board of directors will convene on 27 August 2026 to review the unaudited interim results for the six months ended 30 June 2026. The meeting will also consider approval of...

China High Speed Transmission Appoints Lixin for Deep Internal Control Review

Aug 14, 2026

China High Speed Transmission Equipment Group Co., Ltd., a Hong Kong-listed manufacturer of industrial transmission systems, operates through multiple subsidiaries and engages in complex financial and commercial transactions. The group is subject to...

China High Speed Transmission Orders New Probe and Wider Internal Control Review

Aug 5, 2026

China High Speed Transmission Equipment Group Co., Ltd. has launched a further investigation into a series of past transactions, appointing Grant Thornton Zhitong as a new independent investigator to reassess cash flows, commercial substance, key par...

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 03, 2026