Great China Holdings (Hong Kong) Limited (0021) AI Stock Analysis

• Market Cap: HK$353.80M
• Dividend Yield: N/A
• Average Volume (3M): 662.57K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: 1303.01%
• EPS Growth: -45.00%
• Country: HK
• Employees: 81
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.01
• Shares Outstanding: 3,975,233,400
• 10 Day Avg. Volume: 116,500
• 30 Day Avg. Volume: 662,570
• PEG Ratio: -0.06
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 4.14
• P/FCF Ratio: -19.01
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.09 ▼(-13.00% Downside)

The score is driven primarily by improved financial performance and a low-risk balance sheet (no debt), but is held back by cash flow uncertainty/history of negative free cash flow, weak technical trend (below major moving averages with negative MACD), and limited valuation support due to a negative P/E and no dividend yield data.

Positive Factors

Debt-free balance sheet

A zero-debt capital structure materially reduces financial risk and interest burden, preserving flexibility to fund operations or opportunistic investments without refinancing pressure. This strengthens durability through economic cycles and supports multi-month strategic initiatives.

Strong revenue rebound

A 456% revenue rebound coupled with a return to positive EBIT/EBITDA signals operational recovery and demand re‑acceleration. If sustained, higher top-line throughput supports fixed-cost absorption and creates a platform for secular growth over the next several quarters.

High gross margin

An unusually high gross margin implies strong pricing power or very low direct costs, enabling resilience versus revenue volatility. Persistently wide gross margins give management room to invest in sales, improve services, or absorb SG&A increases while protecting EBITDA.

Negative Factors

Weak cash flow history

Absent recent operating and free cash flow disclosure and a history of negative FCF indicate recurring cash generation challenges. Over the medium term this can constrain capital spending, dividend capacity, and working capital needs, raising refinancing or liquidity risk.

Low net margin versus gross margin

A large gap between a very high gross margin and modest net margin implies elevated operating, administrative, or nonoperating costs. Structurally higher overhead reduces the sustainability of profitability and limits cash conversion even if revenues remain elevated.

Earnings volatility

A 45% decline in EPS growth highlights earnings volatility and potential operational inconsistency. Persistent earnings variability undermines predictability of free cash flow and complicates multi‑period planning, making it harder to rely on the company to fund growth or return capital.

Great China Holdings (Hong Kong) Limited Business Overview & Revenue Model

Company Description

Great China Holdings (Hong Kong) Limited, an investment holding company, engages in the property development and investment business in the People's Republic of China. The company invests in, develops, and sells residential and commercial properties. It also provides property management services, as well as operates a resort. The company was formerly known as Great China Properties Holdings Limited and changed its name to Great China Holdings (Hong Kong) Limited in July 2022. Great China Holdings (Hong Kong) Limited was incorporated in 1954 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

Great China Holdings generates revenue primarily through the development and sale of residential and commercial properties. The company profits from property sales, leasing income from its investment properties, and development management fees. Significant revenue streams also include joint ventures and partnerships with other property developers and investors, which enable the company to share risks and capitalize on larger projects. Additionally, the company may benefit from market trends in urbanization and economic growth within Hong Kong and mainland China, influencing its earnings positively.

Great China Holdings (Hong Kong) Limited Financial Statement Overview

Summary

Income statement shows a sharp revenue rebound (+456%) and recovery to positive EBIT/EBITDA, while the balance sheet is strong with no debt and a solid equity ratio. However, cash flow quality is a key weakness due to missing recent operating/free cash flow data and a history of negative free cash flow.

Income Statement

The company has shown significant improvement in total revenue from the previous year, with a 456% increase. The gross profit margin was notably high at 100% in the latest year, indicating efficient cost management. However, the net profit margin is relatively low at 12.9%, suggesting higher operational costs or other expenses. The company also turned around from negative EBIT and EBITDA in 2023 to positive EBIT in 2024, which is a positive sign of operational recovery.

Balance Sheet

The company has no debt, leading to a highly favorable debt-to-equity ratio of 0. The equity ratio remains strong at approximately 38.5%, reflecting a solid equity base against total assets. Return on Equity (ROE) improved to 2.13%, indicating better utilization of equity to generate profits. Overall, the company's balance sheet is stable, with low financial leverage risk.

Cash Flow

Cash flow metrics are challenging to assess due to missing data on operational and free cash flow for the most recent year. Historically, the company has struggled with negative free cash flow, indicating cash flow management issues. The lack of positive operating cash flow in past years suggests potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	153.43M	132.58M	23.84M	12.55M	10.02M	47.32M
Gross Profit	153.43M	40.63M	9.38M	4.86M	5.50M	14.71M
EBITDA	10.22M	9.78M	-25.27M	57.00M	-17.25M	-3.86M
Net Income	-34.60M	17.11M	-4.04M	53.02M	-47.67M	-82.48M
Balance Sheet
Total Assets	2.14B	2.09B	2.22B	2.21B	2.36B	2.26B
Cash, Cash Equivalents and Short-Term Investments	13.66M	32.76M	46.47M	589.00K	1.08M	744.00K
Total Debt	20.56M	17.35M	22.41M	1.88M	1.39M	1.44M
Total Liabilities	1.33B	1.28B	1.38B	1.31B	1.37B	1.28B
Stockholders Equity	809.07M	803.76M	841.96M	895.35M	991.01M	984.05M
Cash Flow
Free Cash Flow	-22.16M	-28.86M	-7.49M	-31.51M	-29.20M	-37.23M
Operating Cash Flow	-12.87M	-19.57M	102.00K	-30.53M	-26.39M	-32.70M
Investing Cash Flow	-13.37M	-8.79M	-20.13M	-472.00K	-5.47M	-11.01M
Financing Cash Flow	13.40M	20.50M	34.50M	30.59M	32.18M	39.68M

Great China Holdings (Hong Kong) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0021, the sentiment is Negative. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.96 is Neutral, neither overbought nor oversold. The STOCH value of 63.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0021.

Great China Holdings (Hong Kong) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0021	52 Neutral	HK$353.80M	-10.23	-4.27%	―	1303.01%	-45.00%
0225	52 Neutral	HK$654.47M	-3.03	-4.79%	6.05%	6.17%	63.88%
0089	51 Neutral	HK$701.91M	-1.86	-4.58%	3.60%	-4.31%	19.29%
0655	49 Neutral	HK$619.47M	-1.07	-6.19%	3.33%	1.62%	-63.95%
0277	42 Neutral	HK$388.13M	24.39	0.63%	1.15%	-8.55%	―