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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. China New Energy's
Operating Income
for the
six
months ended in Dec. 2025 was HK$-3.49 Mil. China New Energy's Interest Expense for the
six
months ended in Dec. 2025 was HK$-0.69 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for China New Energy's Interest Coverage or its related term are showing as below:
HKSE:01156's Interest Coverage is not ranked *
in the Oil & Gas industry.
Industry Median: 6.32 * Ranked among companies with meaningful Interest Coverage only.
China New Energy (HKSE:01156) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
China New Energy Interest Coverage Related Terms
China New Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for China New Energy's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
HKSE:01156 vs SLB, BKR, FTI: Interest Coverage Comparison
For the Oil & Gas Equipment & Services subindustry, China New Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China New Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China New Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where China New Energy's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
China New Energy did not have earnings to cover the interest expense.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Interest Coverage of 0 (At Loss) mean?
China New Energy (HKSE:01156) has a Interest Coverage of 0 (At Loss) as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China New Energy and its competitors. According to the industry distribution chart, China New Energy ranks #999999 out of 750 companies in the Oil & Gas industry.
Is China New Energy's Interest Coverage too high?
China New Energy's current Interest Coverage is 0 (At Loss). Based on the distribution chart, China New Energy ranks #999999 out of 750 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, China New Energy has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China New Energy's Interest Coverage compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, China New Energy ranks #999999 out of 750 companies for Interest Coverage. This places China New Energy in the lower half of its industry. The industry median Interest Coverage is 6.32. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 6.32, based on 750 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on China New Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 6.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China New Energy's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China New Energy stock overvalued right now?
Based on GuruFocus' analysis, China New Energy (HKSE:01156) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.12, compared to a current price of HK$0.27 — trading 120.8% above its estimated fair value. The current Interest Coverage is 0 (At Loss). China New Energy's overall GF Score™ is 42/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For China New Energy (HKSE:01156), the current Interest Coverage is 0 (At Loss) as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China New Energy (HKSE:01156) Overvalued in 2026?
Based on GuruFocus' analysis, China New Energy stock appears to be overvalued.
The current stock price of HK$0.27 is trading 120.8% above its estimated GF Value™ of HK$0.12.
GuruFocus considers China New Energy to be Significantly Overvalued.
Key valuation signals for HKSE:01156:
Interest Coverage: 0 (At Loss)
GF Value™: HK$0.12 vs. price of HK$0.27 (120.8% above fair value)
No single metric tells the full story. See the HKSE:01156 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China New Energy Ltd is a provider of bioenergy technology solutions. The Group mainly provides integrated services, including engineering design, equipment manufacturing, installation and commissioning, and subsequent maintenance for the core system of ethanol production in the ethanol fuel and alcoholic beverage industries in the PRC. The company offers technology services to two industries: Ethanol fuel construction services and Alcoholic beverage construction services. It generates maximum revenue from the Ethanol fuel construction services streams. Geographically, it derives a majority of its revenue from the PRC and also has a presence in Indonesia, Russia, Myanmar, and Other Countries.
42GF Score
Get the complete analysis for HKSE:01156
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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