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Jilin Province Chuncheng Heating Company Limited Class H (HK:1853)
:1853
Hong Kong Market
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Jilin Province Chuncheng Heating Company Limited Class H (1853) AI Stock Analysis

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HK:1853

Jilin Province Chuncheng Heating Company Limited Class H

(1853)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
HK$1.50
â–¼(-10.71% Downside)
Action:Downgraded
Date:07/01/26
The score is driven primarily by middling financial performance—weakening margins and uneven cash conversion despite acceptable leverage—combined with bearish technicals (price below all major moving averages). These are partially offset by attractive valuation (low P/E and a moderate dividend yield).
Positive Factors
Improved Leverage
Leverage improvement to ~0.43 reduces solvency risk and interest burden, giving the company more financial flexibility to fund maintenance capex, absorb cyclical revenue declines, and pursue small strategic investments without immediate refinancing stress. This change strengthens balance-sheet resilience over the medium term.
Negative Factors
Top-line Weakness
A near-10% revenue decline in 2025 signals weakening demand or pricing power, undermining scale economics. If top-line trends persist, the company faces tougher cost absorption, slower investment ability, and heightened execution risk, making medium-term growth recovery and margin stabilization more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Leverage
Leverage improvement to ~0.43 reduces solvency risk and interest burden, giving the company more financial flexibility to fund maintenance capex, absorb cyclical revenue declines, and pursue small strategic investments without immediate refinancing stress. This change strengthens balance-sheet resilience over the medium term.
Read all positive factors

Jilin Province Chuncheng Heating Company Limited Class H (1853) vs. iShares MSCI Hong Kong ETF (EWH)

Jilin Province Chuncheng Heating Company Limited Class H Business Overview & Revenue Model

Company Description
Jilin Province Chuncheng Heating Company Limited operates within the People's Republic of China, primarily delivering crucial heat supply services. The company's multifaceted operations encompass the generation, distribution, and transmission of h...
How the Company Makes Money
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Jilin Province Chuncheng Heating Company Limited Class H Financial Statement Overview

Summary
Financials are stable but not strengthening: revenue declined in 2025 (-9.5%) after prior growth, and profitability weakened with lower gross and net margins. The balance sheet looks reasonably supported by equity with improved leverage versus 2024 (debt-to-equity ~0.43), but returns on equity have softened. Cash flow is the main risk—operating cash flow rebounded in 2025, yet free cash flow remains volatile and covered only ~29% of net income.
Income Statement
58
Neutral
Balance Sheet
64
Positive
Cash Flow
55
Neutral
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.66B1.81B1.69B1.65B1.65B
Gross Profit212.32M306.67M265.89M230.44M325.15M
EBITDA249.70M257.42M287.46M313.55M316.47M
Net Income79.59M99.90M120.96M114.67M122.76M
Balance Sheet
Total Assets3.50B3.75B3.01B3.04B2.89B
Cash, Cash Equivalents and Short-Term Investments1.04B1.46B1.12B1.03B664.31M
Total Debt469.07M628.80M192.26M234.48M1.45M
Total Liabilities2.34B2.70B2.02B2.13B1.95B
Stockholders Equity1.10B1.04B989.85M911.90M940.28M
Cash Flow
Free Cash Flow93.21M-88.43M370.18M195.72M45.86M
Operating Cash Flow325.42M36.02M399.34M246.15M124.00M
Investing Cash Flow-524.44M-262.41M-29.16M-50.43M-139.14M
Financing Cash Flow-202.44M564.50M-289.37M170.16M-52.94M

Jilin Province Chuncheng Heating Company Limited Class H Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.68
Price Trends
50DMA
1.25
Positive
100DMA
1.37
Negative
200DMA
1.54
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
49.56
Neutral
STOCH
89.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1853, the sentiment is Negative. The current price of 1.68 is above the 20-day moving average (MA) of 1.29, above the 50-day MA of 1.25, and above the 200-day MA of 1.54, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 49.56 is Neutral, neither overbought nor oversold. The STOCH value of 89.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1853.

Jilin Province Chuncheng Heating Company Limited Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$17.65B18.105.60%3.62%6.62%11.55%
62
Neutral
HK$1.07B6.4411.46%5.83%3.91%-15.37%
60
Neutral
HK$11.46B7.365.79%6.14%2.60%-11.05%
58
Neutral
HK$599.71M6.627.27%2.65%-2.33%49.29%
55
Neutral
HK$30.73B11.264.80%6.09%-7.13%-16.53%
41
Neutral
HK$7.42B33.312.98%1.08%-6.70%50.09%
* Utilities Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1853
Jilin Province Chuncheng Heating Company Limited Class H
1.29
-0.58
-31.10%
HK:0384
China Gas Holdings
5.75
-1.60
-21.84%
HK:1083
Towngas China Co
3.09
-0.58
-15.76%
HK:3633
Zhongyu Gas Holdings Limited
2.78
-0.87
-23.91%
HK:9908
JiaXing Gas Group Co. Ltd. Class H
7.75
0.13
1.75%
HK:6661
Huzhou Gas Co., Ltd. Class H
4.95
0.10
2.06%

Jilin Province Chuncheng Heating Company Limited Class H Corporate Events

Chuncheng Heating Buys Coal from Controlling Shareholder in Connected Deal
Jul 30, 2026
Jilin Province Chuncheng Heating Company Limited is a China-based provider of urban heating services. It runs two main segments, heat supply in Jilin Province and construction, maintenance and design services, including engineering construction, m...
Jilin Province Chuncheng Heating Reshapes Company Secretariat and Representation Roles
Jul 28, 2026
Jilin Province Chuncheng Heating Company Limited announced that joint company secretary and authorized representative Mr. Wan Tao has resigned with effect from 28 July 2026 due to work adjustments. The board noted that Mr. Wan has no disagreement ...
Chuncheng Heating Shareholders Back All AGM Resolutions, Approve Dividend Plan and Share Issuance Mandate
May 15, 2026
Shareholders of Jilin Province Chuncheng Heating Company Limited approved all resolutions at the 2025 annual general meeting held in Changchun, with about 75% of issued share capital represented. The meeting endorsed the directors’ work repo...
Jilin Chuncheng Heating Sets Final Dividend and Details Tax Treatment for H-Shareholders
May 15, 2026
Jilin Province Chuncheng Heating Company Limited has confirmed shareholder approval at its 2025 annual general meeting for the payment of a final dividend of RMB 0.03 per share for the year ended 31 December 2025, with H-share holders to receive H...
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: Jul 01, 2026