Puxing Energy (00090.HK): Analysis of Policy-Driven Hype and Fundamental Challenges

This analysis is based on AASTOCKS market movement reports [1]. Puxing Energy (00090.HK) is a Hong Kong-listed renewable energy company. Recently, it has gained market attention due to favorable Chinese new energy storage policies, but its interim results show a sharp 67.23% year-on-year drop in net profit [4], reflecting a significant contradiction between policy-driven hype and the company’s weakened fundamentals.

Puxing Energy belongs to the Utilities - Renewable Energy sector [0], with a market capitalization of approximately HKD 499.874 million [0]. Regarding market background, Hong Kong’s IPO market recovered strongly in 2025, with new energy batteries, advanced manufacturing, and other sectors becoming popular tracks [7]. At the policy level, China released the New Energy Storage Development Action Plan in September, targeting an installed capacity of over 18 million kilowatts by 2027 [6], driving the entire new energy sector to become an investment hotspot [0]. However, the company’s own fundamentals are poor: in the first half of 2025, profit attributable to shareholders was RMB 12.073 million, a sharp 67.23% year-on-year drop with no dividend distribution [4], indicating severe challenges to its profitability.

1. Sector driving forces dominate market attention
   : Puxing Energy’s recent hype mainly comes from industry policy dividends, not its own performance improvement [0].
2. Policy and fundamentals diverge
   : Although energy storage policies bring long-term growth potential to the industry, the company’s short-term profitability decline reflects its weak position in industry competition [4][6].

• Sustained weakening of profitability [4];
• Over-reliance on policy support and lack of core competitiveness;
• Market hype may fade due to policy implementation progress or intensified industry competition.

• Benefit from the long-term growth trend of China’s new energy storage industry [6];
• Sustained attention to the new energy sector in the Hong Kong market [7].

The recent hype around Puxing Energy (00090.HK) is an industry-wide phenomenon driven by policies. Investors need to balance the industry’s growth potential with the company’s own fundamental weaknesses. The sharp decline in interim results suggests problems in its business operations or cost control; follow-up performance improvement measures and policy implementation effects should be tracked.