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Dongfang Electric
(1072)
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Rating:58Neutral
Price Target:
HK$16.00
▼(-26.20% Downside)
Action:Reiterated
Date:10/31/26
The score is primarily held back by inconsistent cash generation (negative TTM free cash flow) and a notable recent rise in leverage, despite improving revenue growth and margins. Technicals add further pressure due to a clear downtrend (price below key moving averages and negative MACD). Valuation and dividend yield provide partial support but are not enough to offset the cash-flow and trend risks.
Positive Factors
Improving Growth and Margins
Revenue acceleration alongside higher net and gross margins indicates improving operating performance across the latest period. If sustained, stronger profitability can increase internal funding capacity and reinforce the company’s ability to compete for power-equipment and infrastructure projects over coming quarters.
Negative Factors
Weak Free Cash Flow Conversion
Negative recent free cash flow shows that reported earnings have not reliably converted into cash available for reinvestment, debt reduction or shareholder returns. The history of large swings suggests project timing and working-capital demands may continue to make internally funded growth less predictable.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Growth and Margins
Revenue acceleration alongside higher net and gross margins indicates improving operating performance across the latest period. If sustained, stronger profitability can increase internal funding capacity and reinforce the company’s ability to compete for power-equipment and infrastructure projects over coming quarters.
Read all positive factors
Dongfang Electric (1072) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$95.38B
Dividend Yield3.9%
Average Volume (3M)3.13M
Price to Earnings (P/E)15.6
Beta (1Y)1.20
Revenue Growth7.45%
EPS Growth44.00%
CountryHK
Employees18,753
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.38
Shares Outstanding408,000,000
10 Day Avg. Volume3,786,822
30 Day Avg. Volume3,128,637
Financial Highlights & Ratios
PEG Ratio0.87
Price to Book (P/B)1.65
Price to Sales (P/S)0.95
P/FCF Ratio-32.96
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$38.50Price Target Upside77.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.42
Revenue Forecast (FY)HK$86.03B
Dongfang Electric Business Overview & Revenue Model
Company Description
A leading enterprise, Dongfang Electric Corporation Limited specializes in the design, production, and international distribution of electricity generation equipment. The company's activities are organized into five distinct divisions: Renewable E...
Dongfang Electric Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 79.04B | 78.62B | 68.34B | 59.57B | 55.35B | 47.82B |
| Gross Profit | 13.67B | 13.40B | 9.46B | 9.61B | 10.00B | 9.04B |
| EBITDA | 5.01B | 6.01B | 3.72B | 4.95B | 4.29B | 3.60B |
| Net Income | 4.68B | 3.83B | 2.92B | 3.55B | 2.86B | 2.29B |
Balance Sheet | ||||||
| Total Assets | 167.29B | 162.67B | 142.01B | 121.11B | 115.27B | 103.10B |
| Cash, Cash Equivalents and Short-Term Investments | 28.18B | 24.51B | 28.55B | 18.00B | 16.07B | 20.19B |
| Total Debt | 24.37B | 5.06B | 2.99B | 1.72B | 1.87B | 1.84B |
| Total Liabilities | 117.48B | 114.51B | 98.87B | 79.89B | 76.64B | 67.72B |
| Stockholders Equity | 47.03B | 45.23B | 38.80B | 37.24B | 34.98B | 32.50B |
Cash Flow | ||||||
| Free Cash Flow | -569.19M | -2.27B | 7.06B | -4.61B | 7.66B | -5.14B |
| Operating Cash Flow | 3.73B | 2.01B | 10.06B | -3.50B | 8.41B | -4.42B |
| Investing Cash Flow | -4.25B | -10.59B | -2.77B | 6.05B | -13.19B | -3.05B |
| Financing Cash Flow | 151.90M | 5.10B | 1.09B | -497.10M | -117.01M | -378.26M |
Dongfang Electric Technical Analysis
Negative
21.68
Price Trends
18.62
Negative
20.80
Negative
27.43
Negative
Market Momentum
-0.79
Negative
30.80
Neutral
58.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1072, the sentiment is Negative. The current price of 21.68 is above the 20-day moving average (MA) of 16.80, above the 50-day MA of 18.62, and below the 200-day MA of 27.43, indicating a bearish trend. The MACD of -0.79 indicates Negative momentum. The RSI at 30.80 is Neutral, neither overbought nor oversold. The STOCH value of 58.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1072.
Dongfang Electric Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | HK$25.02B | 6.37 | 18.22% | 3.63% | 13.48% | 55.89% | |
60 Neutral | HK$5.18B | 4.59 | 10.15% | 9.79% | 19.90% | 67.16% | |
58 Neutral | HK$95.38B | 15.62 | 10.15% | 3.90% | 7.45% | 44.00% | |
53 Neutral | HK$1.93B | 4.36 | 4.42% | 4.52% | -18.58% | ― | |
52 Neutral | HK$63.80B | 19.85 | 7.91% | 3.33% | 24.02% | 68.77% | |
49 Neutral | HK$94.61B | 68.31 | 0.60% | 0.68% | 16.39% | 46.43% |
* Industrials Sector Average
HK:1072
Dongfang Electric
15.56
-2.94
-15.87%
HK:0658
China High Speed Transmission Equipment Group Co
1.18
-0.60
-33.71%
HK:2727
Shanghai Electric Group Company
2.40
-2.11
-46.78%
HK:2208
Xinjiang Goldwind Science & Technology Co
6.91
-6.02
-46.54%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.41
-0.39
-21.68%
HK:1133
Harbin Electric Co. Ltd. Class H
11.19
-1.34
-10.68%
Dongfang Electric Corporate Events
Dongfang Electric Issues Unaudited Third-Quarter 2026 Report Under Hong Kong Rules
Oct 29, 2026
Dongfang Electric has released its unaudited third-quarter report for the nine months ended 30 September 2026, prepared under China Accounting Standards and in compliance with Hong Kong listing and securities rules. The announcement is issued in b...
Dongfang Electric Sets Board Meeting to Approve Third-Quarter Results
Oct 16, 2026
Dongfang Electric Corporation Limited has scheduled a board meeting for October 29, 2026 in Chengdu to review and approve its unaudited third quarterly results for the nine months ended September 30, 2026. The company plans to publish these figure...
Dongfang Electric reshapes Hong Kong company secretarial and compliance team
Aug 25, 2026
Dongfang Electric Corporation Limited announced changes to its corporate governance roles in Hong Kong, with the resignation of joint company secretary, authorised representative and process agent Ms. Tsang Wing Man effective 25 August 2026 due to...
Dongfang Electric Posts Strong Interim Profit Growth on Robust Orders
Aug 25, 2026
Dongfang Electric reported first-half 2026 operating revenue of RMB38.624 billion, up 1.24% year on year, while net profit attributable to shareholders surged 42.07% to RMB2.713 billion, lifting earnings per share to RMB0.78 from RMB0.60. New orde...
Dongfang Electric Sets Board Meeting to Approve 2026 Interim Results
Aug 13, 2026
Dongfang Electric Corporation Limited has scheduled a board meeting for 25 August 2026 in Chengdu, where directors will review and approve the unaudited interim results for the six months ended 30 June 2026. The move signals the company is prepari...
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.