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China Renewable Energy Investment Limited (0987) Fair Value & Analysis

Utilities · HK · Market cap HK$496M

CR China Renewable Energy Investment Limited 0987 · HK
PriceHK$0.1990
Fair ValueHK$0.1400
Upside-29.7%
Quality66/100
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Weak Growth
Solidly profitable · 11.3% net margin
Low debt · generates free cash flow
2.72% dividend yield
Mixed vs. peers (7/14)
Narrow moat 27/100
Evidence: High Range HK$0.1000 – HK$0.1700 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated 2 days ago

Share price −0.5% over the past month.

A solid business, but screening 30% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (HK$0.1700). The favourable scenario is already priced in.
  • Solid but not exceptional quality (66/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

HK$0.3501 HK$0.0887 Fair Value HK$0.1400 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.0887 – HK$0.3501 · fair‑value band HK$0.1000 – HK$0.1700 · the HK$0.1990 price screens above the HK$0.1400 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Renewable Energy Investment Limited (0987) currently trades at HK$0.1990, while our model-based Fair Value estimate is HK$0.1400, implying the stock looks roughly 29.7% overvalued today. The Quality Score stands at 66/100 (solid quality), in the Utilities sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, China Renewable Energy Investment Limited generated revenue of HK$172M at a net margin of 11.3%. Revenue declined 12.1% year over year. It earns a return on equity of 0.9%. The balance sheet holds a net cash position of HK$225M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.1000 (bear case) to HK$0.1700 (bull case); at HK$0.1990, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 17% below its 52-week high and 67% above its 52-week low, currently above its 200-day average. For context, the median of 10 Utilities peers we cover trades at -11% fair-value upside, at -30%, 0987 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$0.8500 HK$1.16 HK$1.55 80
Residual Income HK$0.4900 HK$0.4400 HK$0.3000 76
ROIC Compounder HK$0.1200 HK$0.1200 HK$0.1200 72
All 23 models by family
DCF Models
FCF DCF HK$0.8500 HK$1.21 HK$1.70 38
Owner Earnings HK$0.5400 HK$0.7400 HK$1.03 31
5Y Revenue Exit HK$0.4200 HK$0.4700 HK$0.5300 39
5Y EBITDA Exit HK$0.5700 HK$0.7700 HK$0.9800 41
5Y P/E Exit HK$0.4600 HK$0.5400 HK$0.6300 38
10Y Revenue Exit HK$0.5900 HK$0.6800 HK$0.7800 36
10Y EBITDA Exit HK$0.6800 HK$0.8700 HK$1.10 37
10Y P/E Exit HK$0.6100 HK$0.7300 HK$0.8500 35
Earnings-Based
Graham-Dodd HK$0.0500 HK$0.1800 HK$0.2400 54
Lynch FV HK$0.0400 HK$0.0600 HK$0.0700 50
PEG = 1.0 HK$0.0400 HK$0.0600 HK$0.0700 46
EPV HK$0.1200 HK$0.1200 HK$0.1200 59
Multiples
P/E Multiple HK$0.1000 HK$0.1400 HK$0.1700 63
P/S Multiple HK$0.1000 HK$0.1300 HK$0.1700 58
P/B Multiple HK$0.1000 HK$0.1300 HK$0.1700 55
EV/EBIT HK$0.1500 HK$0.1600 HK$0.1700 53
EV/EBITDA HK$0.4300 HK$0.5400 HK$0.6400 54
EV/Revenue HK$0.1400 HK$0.1500 HK$0.1700 43
Asset-Based
NCAV (Graham) HK$0.3800 HK$0.5100 HK$0.7600 50
Growth DCF
Growth DCF HK$0.8500 HK$1.16 HK$1.55 80
Economic Profit
Residual Income HK$0.4900 HK$0.4400 HK$0.3000 76
ROIC Compounder HK$0.1200 HK$0.1200 HK$0.1200 72
Growth Earnings
Growth-Adj P/E HK$0.0900 HK$0.1300 HK$0.1700 68

Widest divergence: Growth DCF (HK$1.16) versus Earnings-Based (HK$0.0600). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$172M
Revenue growth (YoY) -12.1%
Net margin 11.3%
Return on equity 0.9%
Free cash flow HK$196M FY2025
P/E ratio 19.9
More key figures
Operating margin -12.7%
EPS (TTM) HK$0.0100
Dividend yield 2.7%
EPS growth (YoY) +179%
Net cash HK$225M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 67 · Market factors (momentum, volatility) 70

Profitability 20
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 64
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 74
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

China Renewable Energy Investment Limited, an investment holding company, engages in the renewable energy business in the People's Republic of China and Hong Kong.

Full company description

China Renewable Energy Investment Limited, an investment holding company, engages in the renewable energy business in the People's Republic of China and Hong Kong. As of December 31, 2025, the company operated eight wind farms with the power generating capacity of 738 megawatts and one distributed solar project in Gansu, Hebei, Heilongjiang, Henan, Inner Mongolia, and Zhejiang provinces. It also offers human resources management services, as well as distributes solar energy and sells electricity. The company was formerly known as Hong Kong Energy (Holdings) Limited and changed its name to China Renewable Energy Investment Limited in June 2011. The company was incorporated in 2002 and is headquartered in Tsim Sha Tsui, Hong Kong. China Renewable Energy Investment Limited operates as a subsidiary of HKC (Holdings) Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Renewable Energy Investment Limited reported revenue of HK$172M in FY2025 versus HK$250M in FY2021, a compound −8.9%/yr. Reported net income was HK$19.5M in FY2025, compounding −35.6%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$172M
Latest YoY
+5.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.5%
Avg. growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.0%
Revenue −8.9%/yr
FY21 HK$250M
FY22 HK$197M
FY23 HK$181M
FY24 HK$163M
FY25 HK$172M
Net income −35.6%/yr
FY21 HK$113M
FY22 HK$31.1M
FY23 HK$23.3M
FY24 HK$16.5M
FY25 HK$19.5M
Character of growth · EPS growth decomposed (2014-2025) −7.5 % p.a.
Revenue per share +3.8 pp

of which total revenue +3.5 pp · buybacks/dilution +0.2 pp

EBIT margin −8.9 pp
Tax rate −3.0 pp
Residual (interest, one-offs) +0.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

0987 screens 30% overvalued. Compare with China Yangtze Power Co →

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Cite: Fair Value Calculator (2026). "China Renewable Energy Investment Limited Fair Value". https://www.fairvalue-calculator.com/stock/0987

Peer Group

Utilities - Renewable · 220 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 66 · Top 25%
Fair Value upside −30% · Below median
Return on equity (TTM) 1% · Below median
Return on assets 0% · Below median
Net margin (TTM) 11% · Above median
Operating margin (TTM) -13% · Bottom 25%
Revenue growth -12% · Below median
Dividend yield (TTM) 2.7% · Above median
Debt / equity 0.09× · Lower than 75% of peers

Valuation Multiples vs Utilities - Renewable median · lower = cheaper

P/E (TTM) 19.9× · Pricier than median
P/B 0.26× · Cheaper than 75% of peers
P/S (TTM) 2.88× · Pricier than median
P/FCF 0.3× · Cheaper than 75% of peers
EV/EBITDA 2.2× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 9
FUTURE 0 · sector 0
PAST 3 · sector 11
HEALTH 96 · sector 68
DIVIDEND 54 · sector 48

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Utilities - Renewable stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Yangtze Power Co 600900 ¥28.02 ¥25.13 -10%
Ørsted A/S ORSTED kr 148.25 kr 31.40 -79%
Huaneng Lancang River Hydropower Inc 600025 ¥9.69 ¥5.57 -43%
Adani Green Energy Limited ADANIGREEN ₹1,319 ₹169.61 -87%
AXIA Energia SA AXIAP $10.74 $9.54 -11%
VERBUND AG OEWA €56.80 €66.19 +17%
BEP BEP $34.23 $70.40 +106%
BEPUN BEPUN C$44.56 C$10.15 -77%
China Longyuan Power Group 001289 ¥15.92 ¥7.55 -53%
SDIC Power Holdings 600886 ¥13.95 ¥16.63 +19%

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Frequently asked questions

Is China Renewable Energy Investment Limited (0987) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.1400 versus a price of HK$0.1990, about −30% (overvalued).
What is the fair value of 0987?
Our model-based fair value for China Renewable Energy Investment Limited is HK$0.1400 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.1990.
What is the quality score of 0987?
China Renewable Energy Investment Limited has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Renewable Energy Investment Limited (0987)?
China Renewable Energy Investment Limited reported trailing-twelve-month revenue of about HK$172M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0987?
The net profit margin of China Renewable Energy Investment Limited is about 11.3%, meaning it keeps roughly 11.3% of revenue as net income. Based on the latest reported figures.
Does China Renewable Energy Investment Limited pay a dividend?
China Renewable Energy Investment Limited currently shows a dividend yield of about 2.72% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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