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Dongfang Electric (HK:1072)
:1072
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Dongfang Electric (1072) AI Stock Analysis

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HK:1072

Dongfang Electric

(1072)

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Neutral 54 (OpenAI - Gpt-5.6Sol)
Rating:54Neutral
Price Target:
HK$21.50
▼(-0.83% Downside)
Action:Reiterated
Date:08/27/26
Overall score is held back primarily by weak cash generation and negative free cash flow alongside a notable increase in leverage, despite solid profitability. Technicals also point to a clear downtrend (below key moving averages with negative MACD). Valuation and dividend yield provide partial support but are not strong enough to offset the cash-flow and momentum risks.
Positive Factors
Solid profitability and improving earnings
Sustained margins and higher net income indicate Dongfang Electric retains viable pricing, execution and operating capabilities. This earnings base can support investment and resilience across power-equipment demand cycles.
Negative Factors
Weak cash conversion and negative free cash flow
Operating cash flow materially below earnings indicates profits are not converting efficiently into cash, while negative free cash flow limits self-funding. Persistent working-capital or investment demands could constrain dividends, deleveraging and growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Solid profitability and improving earnings
Sustained margins and higher net income indicate Dongfang Electric retains viable pricing, execution and operating capabilities. This earnings base can support investment and resilience across power-equipment demand cycles.
Read all positive factors

Dongfang Electric (1072) vs. iShares MSCI Hong Kong ETF (EWH)

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...
How the Company Makes Money
Dongfang Electric primarily makes money by selling power-generation and energy-related equipment and by providing engineering and after-sales services tied to those installations. Key revenue streams typically include: (1) Equipment sales: Revenue...

Dongfang Electric Financial Statement Overview

Summary
Profitability is solid (TTM gross margin ~17%, net margin ~5.9% and net income improved vs FY2025), but financial quality is dragged down by very weak cash conversion (TTM operating cash flow ~0.89B vs net income ~4.6B) and negative free cash flow (TTM ~-3.54B). Leverage has also increased (TTM debt-to-equity ~0.51 vs ~0.11 in FY2025), and the reported TTM revenue growth signal (-67.9%) is a major near-term demand/revenue-cadence red flag.
Income Statement
74
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
BreakdownTTMMar 2026Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue78.84B78.62B68.34B59.57B55.35B47.82B
Gross Profit13.37B13.40B9.46B9.61B10.00B9.04B
EBITDA4.84B6.01B3.33B4.95B4.29B3.60B
Net Income4.61B3.83B2.92B3.55B2.86B2.29B
Balance Sheet
Total Assets164.20B162.67B142.01B121.11B115.27B103.10B
Cash, Cash Equivalents and Short-Term Investments29.38B24.51B28.55B18.00B16.07B20.19B
Total Debt23.36B5.06B2.99B1.72B1.87B1.84B
Total Liabilities114.67B114.51B98.87B79.89B76.64B67.72B
Stockholders Equity46.11B45.23B38.80B37.24B34.98B32.50B
Cash Flow
Free Cash Flow-3.54B-2.27B7.06B-4.61B7.66B-5.14B
Operating Cash Flow889.92M2.01B10.06B-3.50B8.41B-4.42B
Investing Cash Flow-5.88B-10.59B-2.77B6.05B-13.19B-3.05B
Financing Cash Flow3.42B5.10B1.09B-497.10M-117.01M-378.26M

Dongfang Electric Technical Analysis

Technical Analysis Sentiment
Negative
Last Price21.68
Price Trends
50DMA
21.97
Negative
100DMA
27.69
Negative
200DMA
28.20
Negative
Market Momentum
MACD
-0.82
Positive
RSI
36.38
Neutral
STOCH
10.21
Positive
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 below the 20-day moving average (MA) of 21.70, below the 50-day MA of 21.97, and below the 200-day MA of 28.20, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 36.38 is Neutral, neither overbought nor oversold. The STOCH value of 10.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1072.

Dongfang Electric Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
HK$35.24B8.7718.09%2.68%13.48%55.89%
58
Neutral
HK$6.71B5.9810.07%7.58%19.90%67.16%
54
Neutral
HK$112.07B18.3710.15%3.02%10.07%40.67%
52
Neutral
HK$78.16B24.488.04%2.51%24.02%68.77%
51
Neutral
HK$1.68B3.834.42%4.52%-18.58%
50
Neutral
HK$106.92B77.380.60%0.53%16.39%46.43%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1072
Dongfang Electric
20.08
3.67
22.36%
HK:0658
China High Speed Transmission Equipment Group Co
1.03
-0.56
-35.18%
HK:2727
Shanghai Electric Group Company
3.08
-0.36
-10.48%
HK:2208
Xinjiang Goldwind Science & Technology Co
9.17
-0.87
-8.68%
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.82
-0.05
-2.42%
HK:1133
Harbin Electric Co. Ltd. Class H
15.16
6.18
68.89%

Dongfang Electric Corporate Events

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...
Dongfang Electric AGM Approves All Resolutions and Final Dividend with Strong Shareholder Turnout
May 29, 2026
Dongfang Electric reported that its 2025 annual general meeting was duly convened in Chengdu on 29 May 2026, with all resolutions passed by poll without amendments and no additional resolutions introduced. Legal advisers confirmed that the meeting...
Dongfang Electric Updates 2025 Final Dividend Terms and Tax Arrangements
May 29, 2026
Dongfang Electric Corporation Limited has updated its proposal for a final cash dividend for the year ended 31 December 2025, setting the payout at RMB 5.3 per 10 shares, with Hong Kong shareholders to receive HKD 6.070185 per 10 shares based on a...
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: Aug 27, 2026