China Aerospace International Holdings Limited (0031) AI Stock Analysis

• Market Cap: HK$1.91B
• Dividend Yield: N/A
• Average Volume (3M): 18.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.69
• 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: -3.03
• 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: 55 Neutral
• Price Target: HK$0.64 ▼(-10.42% Downside)

The score is held back primarily by weak financial performance—especially negative free cash flow and a loss in 2024—despite relatively stable leverage. Technical indicators are a meaningful offset, with the stock trading above key moving averages and positive momentum. Valuation remains a concern due to the negative P/E and no dividend yield data.

Positive Factors

Stable balance sheet / modest leverage

Modest leverage and a roughly 50% equity ratio provide a durable capital buffer against operating volatility. This balance-sheet stability supports liquidity and financing optionality, enabling the company to fund operations or invest strategically without urgent refinancing risks over months.

Improving operational margins

A sustained rise in EBIT margin signals improving operational efficiency and cost control. Even modest margin expansion can compound into healthier operating cash flow if continued, strengthening the firm's ability to restore profitability and reinvest in core industrial and property operations over the medium term.

Diversified business mix

Exposure to both industrial manufacturing and property-related activities provides structural diversification of revenue and asset bases. Multiple cash-flow streams can smooth cyclicality, give strategic flexibility in capital allocation, and help absorb sector-specific shocks over a 2-6 month horizon.

Negative Factors

Negative operating and free cash flow

A lack of operating cash flow and negative free cash flow materially constrain internal funding for capex, working capital, and debt service. If persistent, this forces reliance on external financing or asset disposals, reducing strategic flexibility and increasing solvency risk over the medium term.

Net margin turned negative

Turning to net losses erodes retained earnings and undermines return on equity, limiting the company's capacity to self-fund growth or pay dividends. Persistent negative margins signal structural competitiveness or cost issues that must be fixed to sustain the business over several quarters.

Declining revenue and shrinking gross margin

Falling top-line and a materially lower gross margin indicate pricing pressure, adverse mix, or rising input costs. Together these reduce operating leverage and make margin recovery harder, implying the company may need strategic product, pricing, or cost restructuring to restore durable profitability.

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

Financials are mixed but skew weak: income statement shows declining revenue, shrinking gross margin (27% in 2020 to 21% in 2024) and negative net margin in 2024, while cash flow is a key drag with negative free cash flow and no operating cash flow recorded in 2024. The balance sheet is relatively steadier with modest leverage, but profitability deterioration (negative ROE in 2024) limits the score.

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: 0.71
• 50DMA: Negative
• 100DMA: Negative
• 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 0.71 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.62, and above the 200-day MA of 0.55, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 42.03 is Neutral, neither overbought nor oversold. The STOCH value of 26.46 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	74 Outperform	HK$3.42B	0.87	108.05%	46.02%	12.26%	2497.49%
0040	69 Neutral	HK$649.79M	16.07	3.78%	3.73%	2.10%	―
0580	67 Neutral	HK$3.07B	17.44	8.36%	1.01%	46.98%	130.04%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
0031	55 Neutral	HK$1.91B	-27.65	-0.92%	―	14.06%	4.41%
0532	48 Neutral	HK$215.32M	-1.84	-8.12%	―	6.32%	28.39%

China Aerospace International Holdings Limited Corporate Events

China Aerospace International Books RMB99.6 Million from Partial Rayitek Stake Disposal

China Aerospace International Holdings Limited has partially exited its investment in Rayitek by disposing of a significant portion of its convertible bonds and a small tranche of shares in the Shenzhen-listed company via open-market transactions. Through its wholly owned subsidiary CASIL New Century, the group sold Rayitek convertible bonds with an aggregate principal of RMB58.994 million for about RMB70.839 million and 1.49 million Rayitek shares for about RMB28.784 million, bringing total proceeds to roughly RMB99.623 million. Despite these disposals, China Aerospace International retains Rayitek as an associate, continuing to hold RMB41.5 million in principal amount of Rayitek convertible bonds and approximately 22.55% of its issued share capital, meaning Rayitek’s results will still be equity-accounted in the group’s consolidated financial statements. The aggregated transaction size meets the threshold for a discloseable transaction under Hong Kong listing rules, triggering reporting and announcement obligations but not shareholder approval, and indicates a measured portfolio rebalancing rather than a strategic exit from Rayitek.

The most recent analyst rating on (HK:0031) stock is a Hold with a HK$0.64 price target. To see the full list of analyst forecasts on China Aerospace International Holdings Limited stock, see the HK:0031 Stock Forecast page.