China Aerospace International Holdings Limited (0031) AI Stock Analysis

• Market Cap: HK$2.25B
• Dividend Yield: N/A
• Average Volume (3M): 18.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• 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$0.73 ▲(2.54% Upside)

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

Market Position

The company's leadership in aerospace and satellite sectors provides a strong market position, leveraging its expertise to maintain competitive advantages and secure contracts.

Revenue Growth

A revenue growth rate of over 14% indicates the company's ability to expand its market reach and product adoption, supporting long-term business sustainability.

R&D Investment

Continuous investment in R&D fosters innovation, allowing the company to develop cutting-edge products and maintain a competitive edge in the aerospace industry.

Negative Factors

Profitability Issues

Negative profit margins reflect ongoing profitability challenges, which could hinder the company's ability to reinvest in growth and innovation.

Cash Flow Challenges

Negative cash flow indicates potential cash management issues, impacting the company's ability to fund operations and invest in future growth.

Declining Asset Base

A declining asset base and equity ratio suggest weakening financial stability, which could limit the company's capacity to leverage assets for growth.

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 some operational efficiency improvements, cash flow challenges persist, and the balance sheet shows a stable but slightly weakened equity position.

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: Positive
• Last Price: 0.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.71 is above the 20-day moving average (MA) of 0.65, above the 50-day MA of 0.59, and above the 200-day MA of 0.53, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.39 is Neutral, neither overbought nor oversold. The STOCH value of 68.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$3.35B	0.89	108.05%	46.02%	12.26%	2497.49%
0040	69 Neutral	HK$667.84M	16.74	3.78%	3.73%	2.10%	―
0580	67 Neutral	HK$3.08B	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$2.25B	-31.80	-0.92%	―	14.06%	4.41%
0532	48 Neutral	HK$226.27M	-1.93	-8.12%	―	6.32%	28.39%