Binhai Investment Co (2886) AI Stock Analysis

• Market Cap: HK$1.48B
• Dividend Yield: 7.17%
• Average Volume (3M): 166.83K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.47
• Revenue Growth: -16.94%
• EPS Growth: -22.17%
• Country: HK
• Employees: 1,746
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.13
• Shares Outstanding: 1,383,255,100
• 10 Day Avg. Volume: 129,040
• 30 Day Avg. Volume: 166,826
• PEG Ratio: -0.37
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 7.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: HK$1.00 ▼(-7.41% Downside)

The overall stock score of 67 reflects a balance between stable financial performance and attractive valuation, offset by weak technical indicators. The company's profitability and cash flow generation are strong, but high leverage and declining margins pose risks. The stock's low P/E ratio and high dividend yield suggest it may be undervalued, providing a potential opportunity for income-focused investors. However, bearish technical signals indicate caution in the short term.

Binhai Investment Co Business Overview & Revenue Model

Company Description

Binhai Investment Company Limited (2886) is a leading Chinese energy service provider primarily engaged in the investment, operation, and management of natural gas projects. The company operates within the energy sector, focusing on the distribution and sale of piped natural gas and the provision of related services. Binhai Investment also invests in and develops gas pipeline infrastructure and facilities, serving residential, commercial, and industrial customers across various regions in China.

How the Company Makes Money

Binhai Investment makes money primarily through the sale and distribution of natural gas to residential, commercial, and industrial customers. The company generates revenue by charging for the volume of natural gas consumed by its customers. Additionally, it earns income from connection fees paid by new customers for access to its gas network. Binhai Investment also invests in infrastructure development, such as the construction and maintenance of gas pipelines, which supports its primary business of gas distribution. Strategic partnerships with local governments and other energy companies enhance its market presence and facilitate expansion into new regions, further contributing to its revenue.

Binhai Investment Co Financial Statement Overview

Summary

Binhai Investment Co shows stable financial performance with consistent profitability, although there are pressures on revenue and margins. High leverage poses some risk, but the company maintains a solid equity base. Cash flow generation is strong, though slightly declining. Overall, the company is well-positioned but faces challenges in revenue growth and margin pressures.

Income Statement

Revenue growth has been inconsistent, with a decline of 3.26% in 2024 compared to 2023. Gross profit margin decreased from 11.69% to 9.18%, and net profit margin decreased from 4.01% to 3.22%. EBIT and EBITDA margins also experienced a decline. These metrics indicate some pressure on profitability, although the company remains consistently profitable.

Balance Sheet

The debt-to-equity ratio remained high at 1.50 in 2024, indicating significant leverage. Return on equity decreased slightly to 8.99%, reflecting reduced profitability. The equity ratio remained stable at 28.66%, suggesting adequate equity financing relative to assets.

Cash Flow

Free cash flow declined by 13.62% from 2023 to 2024, reflecting reduced cash generation. Operating cash flow to net income ratio improved to 2.98, indicating strong cash generation relative to profit. Free cash flow to net income ratio remained stable at 1.07, showing effective cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.63B	6.20B	6.41B	6.10B	4.84B	3.65B
Gross Profit	559.92M	569.48M	748.98M	727.32M	855.44M	603.41M
EBITDA	546.76M	612.73M	728.45M	699.62M	781.95M	709.57M
Net Income	204.67M	199.78M	256.61M	325.83M	399.66M	354.90M
Balance Sheet
Total Assets	8.00B	7.75B	8.59B	8.57B	8.18B	7.09B
Cash, Cash Equivalents and Short-Term Investments	360.77M	385.00M	935.40M	845.25M	742.18M	589.77M
Total Debt	3.72B	3.34B	3.92B	3.93B	3.15B	2.38B
Total Liabilities	5.60B	5.45B	6.27B	6.28B	5.86B	5.10B
Stockholders Equity	2.33B	2.22B	2.23B	2.22B	2.25B	1.94B
Cash Flow
Free Cash Flow	243.80M	216.24M	246.87M	-285.59M	-224.78M	-97.08M
Operating Cash Flow	539.66M	594.99M	832.38M	350.25M	486.15M	772.30M
Investing Cash Flow	-265.75M	-213.40M	-586.86M	-802.42M	-613.39M	-972.35M
Financing Cash Flow	-612.93M	-780.61M	-252.55M	617.13M	444.82M	-113.41M

Binhai Investment Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2886, the sentiment is Negative. The current price of 1.08 is below the 20-day moving average (MA) of 1.11, below the 50-day MA of 1.13, and above the 200-day MA of 1.07, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 38.70 is Neutral, neither overbought nor oversold. The STOCH value of 31.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2886.

Binhai Investment Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9908	68 Neutral	HK$1.09B	5.82	15.50%	5.49%	3.23%	2.73%
2886	67 Neutral	HK$1.48B	7.21	8.96%	7.17%	-16.94%	-22.17%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
0681	62 Neutral	€259.10M	6.74	1.42%	―	-3.63%	―
1600	60 Neutral	HK$3.40B	10.74	4.88%	4.54%	7.55%	-32.06%
1265	49 Neutral	€410.17M	―	-3.93%	―	-11.37%	65.17%
6828	46 Neutral	HK$1.00B	11.58	6.00%	―	4.42%	-24.00%

Binhai Investment Co Corporate Events

Binhai Investment Secures RMB150 Million Credit Facility from Sinopec Finance

Binhai Investment Company Limited announced that its subsidiary, TEDA Binhai Clean Energy Group, has secured a RMB150 million credit facility from Sinopec Finance Tianjin. This facility will be used to settle natural gas procurement payments, offering low-cost financing and optimizing the company’s financial structure. The transaction highlights Sinopec’s commitment to supporting Binhai’s sustainable development and demonstrates confidence in the company’s growth prospects.

The most recent analyst rating on (HK:2886) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Reports Resilient Interim Results Amid Revenue Decline

Binhai Investment Company Limited announced its unaudited consolidated results for the six months ending June 30, 2025. The company reported a 17% decrease in revenue compared to the same period in 2024, amounting to HK$2,931,118,000. Despite the decline in revenue, the profit for the period increased by 3% to HK$176,506,000, and basic earnings per share rose slightly by 1% to 12.54 cents. The company’s total assets and equity also saw a modest increase of 3% and 4%, respectively. These results indicate a resilient performance amidst declining revenue, suggesting effective cost management and operational efficiency.

The most recent analyst rating on (HK:2886) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Co Enters Strategic Partnership with Tianjin Water Engineering

Binhai Investment Co, through its wholly-owned subsidiary Taicheng Clean Energy, has entered into a Capital Contribution Agreement with Tianjin Water Engineering and Tianshui Zhicheng. This agreement involves a capital contribution of RMB10,365,133.33, allowing Taicheng Clean Energy to acquire a 49% equity interest in Tianshui Zhicheng. The strategic cooperation aims to support Tianshui Zhicheng’s business operations and expansion as a specialized gas engineering platform. The transaction is classified as a connected transaction under the Listing Rules, requiring reporting and announcement but exempt from circular and independent shareholders’ approval.

The most recent analyst rating on (HK:2886) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Binhai Investment Co stock, see the HK:2886 Stock Forecast page.

Binhai Investment Schedules Board Meeting for Interim Results and Dividend Decision

Binhai Investment Company Limited has announced a board meeting scheduled for August 22, 2025, in Hong Kong. The meeting will address the approval of the unaudited interim results for the first half of 2025 and consider the declaration of an interim dividend. This announcement is significant as it may impact the company’s financial outlook and shareholder returns.

Binhai Investment Partners with Tianjin Institute to Boost Energy Sector Safety and Innovation

Binhai Investment Company Limited has announced a strategic cooperation agreement with Tianjin Special Equipment Inspection Institute to enhance safety and operational efficiency in high-risk projects. This collaboration will leverage both parties’ strengths in market expansion, safety assurance, technical cooperation, and scientific research, aiming to improve Binhai’s technical reserves and competitiveness in the clean energy sector.