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Chongqing Machinery & Electric Co. Ltd. Class H (HK:2722)
:2722
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Chongqing Machinery & Electric Co. Ltd. Class H (2722) AI Stock Analysis

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HK:2722

Chongqing Machinery & Electric Co. Ltd. Class H

(2722)

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Neutral 69 (OpenAI - 4o)
Rating:69Neutral
Price Target:
HK$2.00
▲(7.53% Upside)
Chongqing Machinery & Electric Co. Ltd. Class H shows strong financial performance with improved profitability and reduced leverage. The technical indicators suggest balanced momentum with potential for growth, while the valuation is attractive with a reasonable P/E ratio and moderate dividend yield. The absence of earnings call data and corporate events does not impact the score.

Chongqing Machinery & Electric Co. Ltd. Class H (2722) vs. iShares MSCI Hong Kong ETF (EWH)

Chongqing Machinery & Electric Co. Ltd. Class H Business Overview & Revenue Model

Company DescriptionChongqing Machinery & Electric Co., Ltd., together with its subsidiaries, designs, manufactures, and sells clean energy equipment and high-end smart manufacturing equipment. It manufactures and sells engines, hydroelectric generation equipment, electrical wires and cables, general machinery, machinery tools, high-voltage transformers, and other products. The company also designs, manufactures, and sells vehicle parts and components; industrial robots, intelligent equipment, etc.; processes electronic products; develops, produces, and leases laser, machinery, and testing equipment; turbines, governors, and auxiliary devices; gear processing machine tools and lathes; automation, intelligent equipment, and accessories; provides cotton picking services and maintains cotton machinery and spare parts; cutting tool; casting and forging of non-ferrous metal smelting and special metal smelting; electrical porcelain; agricultural machinery and accessories, special machine tools, spare parts, and special tooling; precision screw; multi-purpose CNC machine tools, roll grinders, and deep hole boring machines. In addition, it leases properties; engages in turbo mechanical product testing, equipment, and system maintenance and transformation; sewage collection, treatment, and operation management BOT business; other trade business; trades in machinery and raw materials; fan coolers; evaporative cooling, water-cooled, and air-cooled chillers; manufactures wind-power equipment, PPR\PPC tubular product, and gas compressors and components; sells network, environmental, and gas products; design and manufactures industrial pumps and parts, and pressure vessels; mechanical and electrical equipment technology; and sells steel, as well as provides loans. The company was founded in 2007 and is headquartered in Chongqing, the People's Republic of China. Chongqing Machinery & Electric Co., Ltd. is a subsidiary of Chongqing Machinery and Electronics Holding (Group) Co., Ltd.
How the Company Makes MoneyChongqing Machinery & Electric Co. Ltd. generates revenue through multiple streams including the sale of machinery and electrical equipment, customized industrial solutions, and after-sales services. A significant portion of its earnings comes from contracts with government sectors and large enterprises for infrastructure projects, particularly in power generation and transportation. The company also benefits from strategic partnerships with global firms that enhance its technological capabilities and market reach. Additionally, the growing demand for automation and renewable energy solutions has opened new avenues for revenue, contributing to its overall financial performance.

Chongqing Machinery & Electric Co. Ltd. Class H Financial Statement Overview

Summary
Chongqing Machinery & Electric Co. Ltd. Class H demonstrates strong revenue growth and improved profitability, with better net profit margins. The balance sheet shows reduced leverage, and cash flows have strengthened notably. However, the company should focus on stabilizing its gross profit margin and enhancing its ability to convert net income into free cash flow.
Income Statement
75
Positive
Chongqing Machinery & Electric Co. Ltd. Class H has shown a consistent revenue growth, with a 10.68% increase from 2023 to 2024. The gross profit margin for 2024 is 15.15%, and the net profit margin improved to 4.83% from 3.77% in 2023, indicating enhanced profitability. However, the gross profit and EBITDA margins have slightly declined, which could be an area of concern.
Balance Sheet
70
Positive
The company's balance sheet reflects a solid equity base with an equity ratio of 45.81% in 2024. The debt-to-equity ratio has decreased to 0.30, signifying lower leverage. However, there is a notable decrease in gross profit over the last year which could impact future equity growth.
Cash Flow
68
Positive
Operating cash flow has significantly improved, with a 392.63% increase from 2023 to 2024. Free cash flow has also turned positive, indicating better cash management. Nevertheless, the free cash flow to net income ratio is moderate, suggesting room for improvement in cash generation relative to profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.35B8.92B8.06B7.21B7.41B6.37B
Gross Profit1.40B1.35B1.51B1.37B1.49B1.31B
EBITDA441.51M394.12M526.78M525.89M543.76M473.79M
Net Income577.15M431.28M303.63M310.30M296.51M182.97M
Balance Sheet
Total Assets18.83B17.62B17.49B17.22B16.74B16.62B
Cash, Cash Equivalents and Short-Term Investments2.42B3.32B2.65B2.70B2.18B1.74B
Total Debt3.95B2.41B4.39B4.19B4.12B4.04B
Total Liabilities9.95B9.03B9.25B9.20B8.92B9.15B
Stockholders Equity8.37B8.07B7.71B7.56B7.35B7.02B
Cash Flow
Free Cash Flow259.18M515.68M-50.80M238.45M261.58M70.20M
Operating Cash Flow453.69M718.30M145.76M310.20M383.75M171.52M
Investing Cash Flow319.92M47.80M235.32M438.25M541.66M217.24M
Financing Cash Flow-348.55M-846.11M-366.54M-416.20M-577.48M

Chongqing Machinery & Electric Co. Ltd. Class H Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.86
Price Trends
50DMA
1.82
Positive
100DMA
1.60
Positive
200DMA
1.26
Positive
Market Momentum
MACD
0.01
Negative
RSI
52.50
Neutral
STOCH
73.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2722, the sentiment is Positive. The current price of 1.86 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.82, and above the 200-day MA of 1.26, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 52.50 is Neutral, neither overbought nor oversold. The STOCH value of 73.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2722.

Chongqing Machinery & Electric Co. Ltd. Class H Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
€9.06B13.2014.15%3.20%2.87%17.03%
HK$28.56B11.9515.06%1.88%34.78%98.79%
€6.30B10.147.29%2.66%11.18%46.57%
$10.79B15.437.44%2.01%2.89%-14.66%
HK$5.13B14.6518.09%2.03%-0.21%-27.21%
HK$6.06B1,388.10-0.43%3.13%80.99%
$2.86B-0.43-69.18%-4.88%-860.80%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2722
Chongqing Machinery & Electric Co. Ltd. Class H
1.86
1.25
202.93%
HK:0658
China High Speed Transmission Equipment Group Co
1.75
0.68
63.55%
HK:0558
L.K. Technology Holdings Limited
3.76
0.74
24.50%
HK:1133
Harbin Electric Co. Ltd. Class H
13.10
10.62
427.80%
HK:0187
Beijing Jingcheng Machinery Electric Co Ltd Class H
4.74
2.07
77.53%
HK:1286
Impro Precision Industries Limited
4.98
2.93
143.16%

Chongqing Machinery & Electric Co. Ltd. Class H Corporate Events

Chongqing Machinery & Electric Co. Ltd. Announces Extraordinary General Meeting to Discuss Key Resolutions
Oct 8, 2025

Chongqing Machinery & Electric Co., Ltd. has announced an extraordinary general meeting scheduled for October 28, 2025, to discuss several key resolutions. These include the approval of a profit distribution plan for the first half of 2025, amendments to the company’s procedural rules and directors’ remuneration, and significant changes to the Articles of Association, including the abolition of the Supervisory Committee. These resolutions are expected to impact the company’s governance structure and operational strategies, potentially influencing its market positioning and stakeholder relations.

Chongqing Machinery & Electric Co., Ltd. Announces Director Resignation
Sep 30, 2025

Chongqing Machinery & Electric Co., Ltd. announced the resignation of Mr. Dou Bo from his position as a non-executive director and member of the audit and risk management committee due to work arrangements. His departure does not affect the board’s statutory requirements or operations. The company expressed gratitude for his contributions and plans to elect a new non-executive director promptly.

Chongqing Machinery & Electric Co. Ltd. Announces New Board of Directors
Sep 30, 2025

Chongqing Machinery & Electric Co., Ltd. has announced the list of directors for the seventh session of its board, detailing the roles and functions of each member. The board comprises executive, non-executive, and independent non-executive directors, with specific members assigned to four established committees: Strategy, Audit and Risk Management, Remuneration, and Nomination. This announcement reflects the company’s structured governance and strategic planning efforts, potentially impacting its operational efficiency and stakeholder confidence.

Chongqing Machinery & Electric Co. Announces Shareholding Change
Sep 19, 2025

Chongqing Machinery & Electric Co., Ltd., a joint stock limited company incorporated in China, announced a change in its shareholding structure. The controlling shareholder, CQMEHG, has entered into an agreement to acquire 6.30% of the company’s shares from CCEG, increasing its holding to 61.04%. This transaction results in CCEG no longer holding any shares, while Yufu Holding remains the indirect controlling shareholder and Chongqing SASAC the ultimate controlling shareholder.

Chongqing Machinery & Electric Co., Ltd. Reports Strong H1 2025 Results
Aug 20, 2025

Chongqing Machinery & Electric Co., Ltd. reported a strong financial performance for the first half of 2025, with a 9.2% increase in revenue and a 53.8% rise in profit attributable to shareholders compared to the same period last year. The company announced an interim dividend of RMB0.01 per share, reflecting its robust financial health and commitment to returning value to shareholders.

Chongqing Machinery & Electric Co., Ltd. Announces Interim Dividend
Aug 20, 2025

Chongqing Machinery & Electric Co., Ltd. announced an interim cash dividend of RMB 0.01 per share for the six months ending June 30, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively. The dividend is set to be approved by shareholders on October 28, 2025, with payment scheduled for November 25, 2025, highlighting the company’s stable financial performance and potential for future growth.

Chongqing Machinery & Electric Co. Projects 50% Profit Increase for H1 2025
Aug 11, 2025

Chongqing Machinery & Electric Co., Ltd. has issued a positive profit alert, projecting a 50% increase in net profit for the first half of 2025 compared to the same period in 2024. This growth is attributed to improved lean management in its hydropower equipment sector and increased investment income from its high-horsepower engine and ultra-high voltage power transmission businesses. The announcement is based on preliminary unaudited financial data, and stakeholders are advised to exercise caution.

Chongqing Machinery & Electric Schedules Board Meeting to Review Interim Results
Aug 5, 2025

Chongqing Machinery & Electric Co., Ltd. has announced a board meeting scheduled for August 20, 2025, to discuss and approve the company’s interim results for the first half of the year and consider any profit appropriation proposals. This meeting is significant as it will provide insights into the company’s financial performance and strategic decisions, potentially impacting its market positioning and stakeholder interests.

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 22, 2025