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Chongqing Machinery & Electric Co. Ltd. Class H (2722) AI Stock Analysis
Chongqing Machinery & Electric Co. Ltd. Class H
(HKEX:2722)
The score is driven primarily by mixed fundamentals: improving cash flow and steady revenue growth are tempered by very thin 2025 operating margins and a sharp increase in leverage. Valuation is a key positive (low P/E and high dividend yield), but technicals remain a notable drag with the stock in a clear downtrend and negative momentum indicators.
Chongqing Machinery & Electric Co. Ltd. Class H (2722) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 5.18B
- Dividend Yield
- 9.79%
- Average Volume (3M)
- 7.10M
- Price to Earnings (P/E)
- 4.6
- Beta (1Y)
- 1.30
- Revenue Growth
- 19.90%
- EPS Growth
- 67.16%
- Country
- Hong Kong
- Employees
- 6,056
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Industrial - Machinery
Chongqing Machinery & Electric Co. Ltd. Class H Business Overview & Revenue Model
Company Description
Chongqing Machinery & Electric Co., Ltd. (CME) specializes in the design, manufacture, and distribution of a broad spectrum of products, focusing on clean energy solutions and advanced smart manufacturing equipment. The company's extensive portfolio...
How the Company Makes Money
The company primarily makes money by selling machinery and electrical equipment to customers, recognizing revenue from delivered products and completed orders. It may also earn revenue from related services such as installation, commissioning, mainte...
Chongqing Machinery & Electric Co. Ltd. Class H Financial Statement Overview
Summary
Steady revenue growth and a strong rebound to positive, surging free cash flow in 2024–2025 support the business profile. Offsetting this, 2025 operating profitability is extremely thin (operating margin under 1%) and leverage rose sharply in 2025 (higher debt-to-equity), increasing financial risk and raising earnings-quality concerns due to the gap between operating profit and net income.
Income Statement
54NeutralBalance Sheet
58NeutralCash Flow
63Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.79B | 10.04B | 8.92B | 8.06B | 7.21B | 7.41B |
| Gross Profit | 1.53B | 1.54B | 1.35B | 1.51B | 1.37B | 1.49B |
| EBITDA | 390.10M | 424.20M | 394.12M | 800.66M | 755.26M | 767.83M |
| Net Income | 925.39M | 763.92M | 431.28M | 303.63M | 310.30M | 296.51M |
Balance Sheet | ||||||
| Total Assets | 21.79B | 19.96B | 17.62B | 17.49B | 17.22B | 16.74B |
| Cash, Cash Equivalents and Short-Term Investments | 4.56B | 3.17B | 3.32B | 2.65B | 2.70B | 2.18B |
| Total Debt | 3.80B | 5.80B | 2.41B | 4.39B | 2.97B | 2.94B |
| Total Liabilities | 11.88B | 10.65B | 9.03B | 9.25B | 9.20B | 8.92B |
| Stockholders Equity | 9.41B | 8.81B | 8.07B | 7.71B | 7.56B | 7.35B |
Cash Flow | ||||||
| Free Cash Flow | 961.92M | 765.32M | 515.68M | -50.80M | 238.45M | 261.58M |
| Operating Cash Flow | 1.17B | 987.95M | 718.30M | 145.76M | 310.20M | 383.75M |
| Investing Cash Flow | 126.47M | -166.33M | 47.80M | 235.32M | 438.25M | 541.66M |
| Financing Cash Flow | -944.97M | -476.32M | -846.11M | -366.54M | -348.01M | -416.20M |
Chongqing Machinery & Electric Co. Ltd. Class H Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2722, the sentiment is Negative. The current price of 1.41 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.68, and below the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 36.69 is Neutral, neither overbought nor oversold. The STOCH value of 64.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2722.
Chongqing Machinery & Electric Co. Ltd. Class H Peers Comparison
Overall Rating
HK:113363Neutral
HK:107261Neutral- HK:272260Neutral
HK:272754Neutral
HK:065845.4Neutral
HK:018740Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
| HK:1133 | 63Neutral | HKD 25.02B | 6.36 | 18.22% | 3.63% | 13.48% | 55.89% |
| HK:1072 | 61Neutral | HKD 95.38B | 15.62 | 10.15% | 3.90% | 7.45% | 44.00% |
| HK:2722 | 60Neutral | HKD 5.18B | 4.59 | 10.15% | 9.79% | 19.90% | 67.16% |
| HK:2727 | 54Neutral | HKD 94.61B | 68.31 | 1.18% | 0.68% | 21.96% | 38.42% |
| HK:0658 | 45Neutral | HKD 1.93B | 4.36 | 4.42% | ― | -18.58% | ― |
| HK:0187 | 40Underperform | HKD 4.14B | -40.78 | -12.38% | ― | -2.05% | -2047.92% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:2722 | Chongqing Machinery & Electric Co. Ltd. Class H | 1.41 | -0.40 | -22.07% | |
| HK:0658 | China High Speed Transmission Equipment Group Co | 1.18 | -0.57 | -32.57% | |
| HK:1072 | Dongfang Electric Corporation Limited Class H | 15.56 | -3.63 | -18.90% | |
| HK:2727 | Shanghai Electric Group Company Class H | 2.40 | -2.28 | -48.71% | |
| HK:1133 | Harbin Electric Co. Ltd. Class H | 11.19 | -1.66 | -12.93% | |
| HK:0187 | Beijing Jingcheng Machinery Electric Co Ltd Class H | 2.27 | -2.48 | -52.22% |
Chongqing Machinery & Electric Co. Ltd. Class H Corporate Events
Chongqing Machinery & Electric Calls EGM to Approve Interim Profit Distribution
Chongqing Machinery & Electric Co., Ltd. has called an Extraordinary General Meeting for 18 November 2026 in Chongqing to seek shareholder approval of its profit distribution plan for the six months ended 30 June 2026. The meeting arrangements, i...
Chongqing Machinery & Electric Sells 51% Stake in Subsidiary to Controlling Shareholder Unit
Chongqing Machinery & Electric Co., Ltd. has agreed to sell 51% of the equity interest in a wholly owned subsidiary to Silian Group, a wholly owned unit of its controlling shareholder, for RMB89.7916 million. The disposal repositions the ownershi...
Chongqing Machinery & Electric Subsidiary Files for Bankruptcy Liquidation
Chongqing Machinery & Electric has disclosed that its wholly owned subsidiary, Chongqing Industrial Enabling Innovation Center Co., Ltd., has applied to the Fifth Intermediate People’s Court of Chongqing for bankruptcy liquidation after fai...
Chongqing Machinery & Electric outlines profit-focused strategy and wind blade growth
Chongqing Machinery & Electric Co. Ltd., a PRC-based equipment manufacturer listed in Hong Kong, operates as a first-class equipment group focused on upgrading existing operations and expanding scale. Its principal businesses span traditional mac...
CQME Profit Jumps 31% as Interim Dividend Doubles
Chongqing Machinery & Electric Co., Ltd. reported interim revenue of RMB5.40 billion for the six months ended 30 June 2026, up 15.9% year-on-year, with gross profit rising 2.0% to RMB764.4 million. Profit attributable to shareholders surged 31.1%...
Chongqing Machinery & Electric Declares Interim Dividend for 2026 H-Shareholders
Chongqing Machinery & Electric Co., Ltd. has declared an interim ordinary cash dividend of RMB 0.02 per share for the six months ended 30 June 2026, for the financial year ending 31 December 2026. The dividend is tied to the company’s H-sha...
Chongqing Machinery & Electric forecasts 30% rise in first-half 2026 profit
Chongqing Machinery & Electric Co., Ltd. expects its net profit attributable to shareholders for the first half of 2026 to rise by about 30% year on year, based on unaudited management accounts. The improvement is driven by better profitability i...
Chongqing Machinery & Electric Sets August Board Meeting To Review Interim Results
Chongqing Machinery & Electric Co., Ltd. has scheduled a board meeting in Chongqing on 20 August 2026 to review and approve its interim results for the six months ended 30 June 2026. The board will also consider a profit appropriation proposal, i...
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: Sep 24, 2026