China Aerospace International Holdings Limited (0031) AI Stock Analysis

• Market Cap: HK$1.82B
• Dividend Yield: N/A
• Average Volume (3M): 18.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 14.06%
• EPS Growth: 4.41%
• Country: HK
• Employees: 7,009
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.01
• Shares Outstanding: 3,085,022,000
• 10 Day Avg. Volume: 15,842,956
• 30 Day Avg. Volume: 18,184,071
• PEG Ratio: 0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: -15.25% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 46 Neutral
• Price Target: HK$0.50 ▼(-15.25% Downside)

The overall stock score is primarily impacted by financial performance challenges, including declining revenue and negative profitability. Technical indicators suggest bearish momentum, while valuation metrics are unattractive due to a negative P/E ratio and lack of dividends. These factors collectively contribute to a lower stock score.

China Aerospace International Holdings Limited Business Overview & Revenue Model

Company Description

China Aerospace International Holdings Limited, an investment holding company, engages in hi-tech manufacturing business in the People's Republic of China. The company distributes plastic and metal products and molds, liquid crystal displays and modules, printed circuit boards, intelligent battery chargers, and electronic components. It is also involved in the provision of property investment and management, and treasury services; electroplating of metals; and distribution of packing products. The company was incorporated in 1975 and is based in Hung Hom, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange.

How the Company Makes Money

China Aerospace International Holdings Limited generates revenue through multiple streams, primarily from the sale of aerospace components and satellite systems to governmental and commercial clients. A significant portion of its earnings comes from contracts with aerospace agencies and companies involved in space exploration and satellite deployment. The company also benefits from joint ventures and partnerships with other aerospace firms and research institutions, which allow it to leverage advanced technologies and expand its market reach. Furthermore, its investment in research and development enables the creation of innovative products, enhancing its competitive edge and attracting new business opportunities.

China Aerospace International Holdings Limited Financial Statement Overview

Summary

The company faces declining revenue and profitability issues, with negative net profit margins in 2024. Despite operational improvements in EBIT margins, cash flow challenges persist with negative free cash flow and no operating cash flow in 2024. The balance sheet remains stable but profitability concerns are significant.

Income Statement

The company's revenue declined in recent years, with a notable drop from 2020 to 2023. Gross profit margins decreased from 27% in 2020 to 21% in 2024. Additionally, the net profit margin turned negative in 2024, indicating challenges in profitability. However, there was a slight recovery in EBIT margins from 1.6% in 2023 to 2.7% in 2024, showing some operational efficiency improvements.

Balance Sheet

The company maintains a stable equity position with a debt-to-equity ratio improving from 0.21 in 2019 to 0.23 in 2024. However, total assets have been decreasing, and the equity ratio slightly declined from 54% in 2019 to 50% in 2024. Return on equity experienced significant volatility, dropping to negative in 2024, indicating profitability issues.

Cash Flow

After a positive cash flow trend up to 2020, the company's free cash flow turned negative in recent years, with no operating cash flow recorded in 2024. This indicates potential cash management issues. The free cash flow to net income ratio has been unstable, further emphasizing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.04B	3.84B	3.45B	4.50B	4.75B	3.58B
Gross Profit	840.61M	807.85M	700.72M	989.11M	1.07B	967.95M
EBITDA	331.28M	130.00M	319.98M	47.86M	569.62M	618.56M
Net Income	-67.07M	-53.31M	4.05M	-119.92M	345.76M	296.68M
Balance Sheet
Total Assets	14.81B	14.28B	14.58B	15.27B	16.87B	16.12B
Cash, Cash Equivalents and Short-Term Investments	1.42B	1.50B	1.72B	2.09B	1.86B	1.99B
Total Debt	1.73B	1.62B	1.51B	1.60B	1.67B	1.63B
Total Liabilities	5.53B	5.17B	5.11B	5.48B	6.03B	5.83B
Stockholders Equity	7.31B	7.15B	7.41B	7.66B	8.39B	7.93B
Cash Flow
Free Cash Flow	-162.53M	-366.67M	-187.50M	344.43M	-311.90M	143.69M
Operating Cash Flow	121.82M	247.53M	244.21M	722.38M	152.18M	473.87M
Investing Cash Flow	-238.05M	-688.85M	-207.36M	-240.58M	-479.70M	206.65M
Financing Cash Flow	164.73M	92.02M	-166.77M	-209.64M	-193.49M	-192.79M

China Aerospace International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.59
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0031, the sentiment is Negative. The current price of 0.59 is below the 20-day moving average (MA) of 0.70, below the 50-day MA of 0.65, and above the 200-day MA of 0.47, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 36.77 is Neutral, neither overbought nor oversold. The STOCH value of 31.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0031.

China Aerospace International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0259	80 Outperform	HK$3.96B	1.43	93.13%	39.78%	10.88%	1523.33%
0580	72 Outperform	HK$2.84B	16.16	8.36%	1.13%	46.98%	130.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0040	60 Neutral	HK$604.67M	20.18	2.74%	3.68%	5.79%	―
0031	46 Neutral	HK$1.82B	―	-0.92%	―	14.06%	4.41%
0532	41 Neutral	HK$208.02M	―	-8.12%	―	6.32%	28.39%

China Aerospace International Holdings Limited Corporate Events

China Aerospace International Announces Auditor Change

China Aerospace International Holdings Limited has announced a proposed change of auditor, with Deloitte Touche Tohmatsu set to retire at the conclusion of the 2025 Annual General Meeting after over 20 years of service. The company plans to appoint PKF Hong Kong Limited as the new auditor, subject to approval at the AGM, citing good corporate practice and the competence of PKF Hong Kong as reasons for the change.

China Aerospace International Holdings Limited Strengthens ESG Commitment

China Aerospace International Holdings Limited has established an Environment, Social and Governance Committee to oversee and implement ESG strategies across the company and its subsidiaries. This committee is tasked with formulating policies, promoting ESG culture, monitoring communication with stakeholders, and ensuring compliance with relevant laws and standards. The initiative underscores the company’s commitment to sustainability and responsible governance, potentially enhancing its industry positioning and stakeholder relationships.

China Aerospace Enhances Shareholder Communication Strategy

China Aerospace International Holdings Limited has implemented a comprehensive Shareholders & Investors Communication Policy to enhance transparency and communication with its stakeholders. The policy includes timely updates on the company’s website, regular shareholder meetings, and accessible corporate documents, aiming to foster better understanding and engagement among shareholders and investors.

China Aerospace International Holdings Reports 2024 Financial Results

China Aerospace International Holdings Limited has announced its audited financial results for the year ending December 31, 2024. The company reported a revenue increase to HK$3,841,472,000 from HK$3,450,954,000 in 2023, but faced a loss of HK$83,853,000, compared to a loss of HK$1,765,000 in the previous year. The results indicate challenges in cost management and investment property valuations, impacting the company’s profitability and shareholder returns.

China Aerospace International Issues Profit Warning Amid Increased Losses

China Aerospace International Holdings Limited has issued a profit warning, anticipating a net loss between HK$60 million and HK$90 million for the year ending December 2024, a significant increase from the previous year’s loss of HK$1,765,000. Despite a projected 10% increase in revenue to approximately HK$3,800 million, the loss is attributed mainly to a HK$300 million decrease in the fair value of investment properties. This announcement may impact shareholder and investor confidence, urging caution in dealing with the company’s shares.

China Aerospace International Schedules Board Meeting for Annual Results Review

China Aerospace International Holdings Limited has announced that its Board of Directors will meet on March 27, 2025, to review and approve the company’s annual results for the year ending December 31, 2024. This meeting will also consider the possibility of declaring a final dividend, which could impact the company’s financial outlook and shareholder returns.

China Aerospace International Appoints New Non-Executive Director

China Aerospace International Holdings Limited announced changes in its board of directors effective from 14 February 2025. Mr. Hua Chongzhi has retired from his role as a Non-Executive Director and committee member, to be succeeded by Mr. Liu Yong, who brings extensive financial management experience. This transition may strengthen the company’s governance and strategic direction in its market.

China Aerospace Announces New Board of Directors

China Aerospace International Holdings Limited has announced the updated list of its Board of Directors and their roles, effective from February 14, 2025. This update reflects strategic governance restructuring intended to strengthen the company’s leadership as it continues to navigate the competitive aerospace industry. By appointing experienced directors to various committees, the company aims to bolster its operational efficiency and adherence to governance standards, potentially impacting its market standing and stakeholder relations positively.