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China Qinfa Group Ltd. (HK:0866)
:0866
Hong Kong Market
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China Qinfa Group Ltd. (0866) AI Stock Analysis

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HK:0866

China Qinfa Group Ltd.

(0866)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
HK$2.00
▼(-36.91% Downside)
The overall stock score of 58 reflects significant financial challenges, including high leverage and cash flow issues, which are the most impactful factors. Positive technical indicators provide some support, suggesting a potential bullish trend. However, the valuation is not particularly attractive, with a high P/E ratio and modest dividend yield.

China Qinfa Group Ltd. (0866) vs. iShares MSCI Hong Kong ETF (EWH)

China Qinfa Group Ltd. Business Overview & Revenue Model

Company DescriptionChina Qinfa Group Limited, an investment holding company, engages in the mining, purchase and sale, filtering, storage, blending, shipping, and transportation of coal in the People's Republic of China. The company operates through Coal Business and Shipping Transportation segments. As of December 31, 2021, the company owned and operated five coal mines in China and one coal mine in Indonesia. It is also involved in goods transportation and logistics, and charter hire activities, as well as time charter and voyage charter of vessels. The company was founded in 1996 and is based in Wan Chai, Hong Kong.
How the Company Makes MoneyChina Qinfa Group Ltd. generates revenue primarily through the sale of coal products. The company owns and operates multiple coal mines where it extracts raw coal, which is then processed and washed to improve quality before distribution. The revenue is mainly derived from supplying coal to power plants and industrial customers. Additionally, the company offers transportation services, leveraging its logistics network to ensure efficient coal delivery. Strategic partnerships with logistics companies and energy enterprises enhance its market reach and operational efficiency, contributing to its overall earnings.

China Qinfa Group Ltd. Financial Statement Overview

Summary
China Qinfa Group Ltd. faces significant financial challenges, with declining revenue and profitability margins. High leverage and a negative equity position present substantial financial risks. Cash flow difficulties further complicate the situation, highlighting the need for strategic financial management.
Income Statement
55
Neutral
The company experienced a decline in total revenue from 2022 to 2023, with a negative revenue growth rate of -9.1%. The gross profit margin for 2023 was 14.92%, which indicates moderate profitability. The net profit margin improved to 5.81%, reflecting better cost management, despite the revenue drop. However, the EBIT margin decreased to 15.18%, and the EBITDA margin fell to 42.32%, showing declining operational efficiency.
Balance Sheet
40
Negative
The balance sheet shows high leverage, with a negative equity position in 2023, indicating financial instability. The debt-to-equity ratio is not meaningful due to negative equity, highlighting significant reliance on debt financing. Although liabilities have decreased, the company remains highly leveraged, posing risks to financial health.
Cash Flow
30
Negative
The cash flow statement reports a decline in free cash flow from 2022 to 2023, indicating challenges in generating cash. With an operating cash flow to net income ratio of 7.29 in 2023, the company struggles to convert income into cash, suggesting potential liquidity issues. The absence of positive free cash flow growth adds to the financial pressure.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.32B2.60B3.45B3.79B4.56B2.25B
Gross Profit434.41M514.54M878.02M1.27B1.94B355.31M
EBITDA981.51M1.03B1.46B1.75B6.75B-3.47B
Net Income332.85M501.94M200.35M456.54M2.79B-2.91B
Balance Sheet
Total Assets9.50B8.63B7.86B7.85B7.90B5.30B
Cash, Cash Equivalents and Short-Term Investments618.80M1.03B302.73M856.00M1.05B154.90M
Total Debt1.08B1.20B3.58B3.53B3.71B4.60B
Total Liabilities6.26B5.14B7.54B7.04B7.58B8.19B
Stockholders Equity1.77B1.97B-472.87M13.11M-450.10M-3.27B
Cash Flow
Free Cash Flow-582.31M-384.53M378.85M253.32M1.75B404.63M
Operating Cash Flow-231.85M466.93M1.46B984.43M1.89B527.08M
Investing Cash Flow-328.50M-612.16M-1.84B-835.63M-18.77M-139.68M
Financing Cash Flow1.31B823.72M-212.07M-307.81M-989.73M-394.07M

China Qinfa Group Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.17
Price Trends
50DMA
2.94
Positive
100DMA
2.38
Positive
200DMA
1.74
Positive
Market Momentum
MACD
0.03
Positive
RSI
53.69
Neutral
STOCH
31.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0866, the sentiment is Positive. The current price of 3.17 is above the 20-day moving average (MA) of 3.09, above the 50-day MA of 2.94, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0866.

China Qinfa Group Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HK$11.80B6.9219.63%8.44%-2.79%-39.45%
$12.34B19.436.76%-20.50%-64.45%
€2.22B8.063.21%21.63%-23.72%-86.69%
€1.44B7.316.31%4.95%-26.28%-69.55%
$15.17B7.614.09%5.20%3.87%-62.32%
HK$7.97B21.8181.71%1.37%-20.71%209.68%
HK$754.94M-2.22-9.96%-26.97%-76.57%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0866
China Qinfa Group Ltd.
3.14
1.66
112.16%
HK:0975
Mongolian Mining
11.49
2.61
29.39%
HK:1277
Kinetic Mines & Energy Ltd.
1.54
0.22
16.67%
HK:2798
Perennial Energy Holdings Ltd.
1.02
-0.14
-12.07%
HK:1733
E-Commodities Holdings Limited
0.87
-0.49
-35.94%
HK:6885
Henan JinMa Energy Co. Ltd. Class H
1.58
0.92
139.39%

China Qinfa Group Ltd. Corporate Events

China Qinfa Group’s Subsidiary Enters Coal Supply Agreement
Oct 24, 2025

China Qinfa Group Ltd. announced that its subsidiary, SDE, has entered into a Coal Supply Agreement with Zhejiang Energy Asia Pacific for the sale of 75,000 MT of Indonesian steam coal. This transaction is classified as a connected transaction under the Hong Kong Listing Rules due to Zhejiang Energy Asia Pacific’s status as a connected person at the subsidiary level. The agreement has been approved by the Board and deemed fair and reasonable by independent non-executive directors, thus exempting it from certain regulatory requirements.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.

China Qinfa Group Secures Coal Supply Agreement with Zhejiang Energy
Sep 30, 2025

China Qinfa Group Ltd. announced a new Coal Supply Agreement between its subsidiary SDE and Zhejiang Energy Asia Pacific. This agreement involves the sale of 75,000 MT of Indonesian steam coal, with a potential adjustment of 10% in quantity. The transaction is classified as a connected transaction under Hong Kong’s Listing Rules, requiring reporting and annual review but exempt from certain approval requirements. This agreement strengthens Qinfa’s market position and underscores its strategic partnerships in the coal supply chain.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.

China Qinfa Group’s Subsidiary Enters Coal Supply Agreement
Sep 5, 2025

China Qinfa Group Ltd. announced that its subsidiary, SDE, has entered into a Coal Supply Agreement with Zhejiang Energy Asia Pacific for the sale of 70,000 MT of Indonesian steam coal. This agreement, classified as a connected transaction under Hong Kong’s listing rules, reflects the company’s strategic partnerships and adherence to fair commercial terms, potentially enhancing its market position and shareholder value.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.

China Qinfa Group Reports Revenue Growth Amidst Net Loss in H1 2025
Aug 27, 2025

China Qinfa Group Ltd. reported its interim financial results for the first half of 2025, showing a revenue increase to RMB1,089 million, up by RMB596 million from the same period in 2024. Despite the revenue growth, the company experienced a net loss of RMB162.7 million due to losses from discontinued operations, although continuing operations showed a profit of RMB31.0 million. The company also reported an EBITDA increase of RMB136 million for continuing operations, but no interim dividend was recommended.

The most recent analyst rating on (HK:0866) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on China Qinfa Group Ltd. stock, see the HK:0866 Stock Forecast page.

China Qinfa Group to Review Interim Results and Dividend Proposal
Aug 15, 2025

China Qinfa Group Ltd. has announced that its board of directors will meet on August 27, 2025, to review and approve the interim financial results for the first half of 2025. The meeting will also consider the recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

China Qinfa Group Issues Profit Warning Amidst Market Challenges
Aug 14, 2025

China Qinfa Group Ltd. has issued a profit warning, indicating an expected loss after taxation of up to RMB168 million for the first half of 2025, compared to a profit of RMB60.8 million in the same period of 2024. This downturn is attributed to a decrease in coal selling prices, reduced production volumes in discontinued operations, and foreign exchange losses due to currency depreciation. The company advises stakeholders to exercise caution in dealing with its securities as it finalizes its interim results.

China Qinfa Group Appoints New Independent Non-Executive Director
Aug 14, 2025

China Qinfa Group Limited has announced the appointment of Ms. Deng Bingjing as a member of its Nomination Committee and Mr. Long Yufeng as an independent non-executive director, as well as a member of the Audit, Remuneration, and Nomination Committees, effective from August 14, 2025. Mr. Long brings extensive experience in architectural design and building industrialization, along with his role as an executive director at Shenzhen Capol International & Associates Co., Ltd. His appointment is expected to enhance the company’s governance and strategic oversight.

China Qinfa Group Updates Nomination Committee Terms
Aug 14, 2025

China Qinfa Group Ltd. has updated the terms of reference for its Nomination Committee, which is responsible for overseeing the nomination process for board members. The Committee will consist of at least three members, primarily Independent Non-executive Directors, and must include at least one director of a different gender. This update aligns with the Listing Rules of the Hong Kong Stock Exchange, ensuring compliance and promoting diversity in board nominations.

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