| Valuation method | Value, HK$ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 114.30 | 67135 |
| Intrinsic value (DCF) | 0.14 | -18 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
China Evergrande New Energy Vehicle Group Limited is a diversified Chinese conglomerate operating at the intersection of healthcare and electric vehicle manufacturing. Formerly known as Evergrande Health Industry Group, the company transformed in 2020 to capitalize on China's booming new energy vehicle market while maintaining its healthcare roots. The company operates through two primary segments: Health Management, which includes health properties, medical cosmetology, anti-aging services, elderly care, and healthcare product distribution; and New Energy Vehicle, focusing on EV research, development, production, and smart mobility solutions including lithium-ion battery manufacturing. Headquartered in Guangzhou, China, the company represents a unique hybrid business model attempting to leverage China's dual growth trends in healthcare services and electric vehicle adoption. As a subsidiary of the troubled China Evergrande Group, the company faces significant challenges but operates in strategically important sectors supported by Chinese government policies promoting both healthcare modernization and electric vehicle infrastructure development.
China Evergrande New Energy Vehicle Group presents an extremely high-risk investment proposition characterized by severe financial distress. The company reported a massive net loss of HKD 11.93 billion in FY2023 against revenue of only HKD 1.34 billion, indicating fundamentally unsustainable operations. With negative operating cash flow of HKD 251 million and enormous debt burden of HKD 26.8 billion against minimal cash reserves of HKD 129 million, the company faces severe liquidity constraints. The parent company's well-publicized financial crisis further compounds these challenges. While operating in growth sectors (healthcare and EVs), the company's financial position suggests substantial going concern risks. Investors should approach with extreme caution given the catastrophic financial metrics and overwhelming debt load that dwarf the company's market capitalization of approximately HKD 1.84 billion.
China Evergrande New Energy Vehicle Group operates in two highly competitive sectors where it faces significant disadvantages. In the new energy vehicle segment, the company entered the market late and without the technological expertise or manufacturing scale of established competitors. Unlike specialized EV manufacturers that focused resources on core technology development, Evergrande NEV attempted rapid expansion through acquisition but failed to achieve production scale or technological differentiation. The company's financial constraints severely limit its ability to compete in capital-intensive EV manufacturing where R&D spending and production scale are critical success factors. In the healthcare segment, the company operates in a fragmented market but lacks the specialized focus of pure-play healthcare providers. Its hybrid model creates strategic confusion rather than synergies, as both segments require substantial capital investment and specialized expertise. The company's primary competitive disadvantage stems from its catastrophic financial position, which prevents necessary investments in either business segment and creates overwhelming debt service requirements that cripple operational flexibility. Being part of the troubled Evergrande Group ecosystem further damages credibility with suppliers, customers, and potential partners.