China Chengtong Development Group Limited (0217) AI Stock Analysis

• Market Cap: €726.25M
• Dividend Yield: 1.64%
• Average Volume (3M): 3.92M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.66
• Revenue Growth: -25.32%
• EPS Growth: -42.98%
• Country: HK
• Employees: 230
• Sector: Basic Materials
• Sector Strength: 75
• Industry: Steel
• EPS (TTM): <0.01
• Shares Outstanding: 5,964,635,300
• 10 Day Avg. Volume: 8,636,200
• 30 Day Avg. Volume: 3,919,833
• PEG Ratio: -0.37
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.27
• 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

• Rating: 64 Neutral
• Price Target: ―

The stock score reflects a blend of strengths and weaknesses. The primary concerns are in financial performance, particularly negative cash flows and high leverage, which pose risks. However, the stock's technical stability and favorable valuation aspects, like a reasonable P/E ratio and high dividend yield, provide support. The absence of recent earnings call data or notable corporate events means these areas did not influence the score.

China Chengtong Development Group Limited Business Overview & Revenue Model

Company Description

China Chengtong Development Group Limited (0217) is a Hong Kong-based investment holding company engaged primarily in the business of property development and investment. The company operates through various segments, including property development, property investment, and trading of coal. Its core services involve the development and sale of residential and commercial properties, leasing, and managing investment properties, alongside engaging in the coal trading business.

How the Company Makes Money

China Chengtong Development Group Limited generates revenue through several key streams. The primary source of income is from the sale and leasing of residential and commercial properties, which involves the development, marketing, and management of real estate projects. The company also earns revenue from its investment properties through rental income. Additionally, the company is involved in the trading of coal, which contributes to its earnings by leveraging market demand for coal in various industries. These diverse revenue streams are further supported by strategic partnerships and investments that enhance its portfolio and influence in the real estate and energy sectors.

China Chengtong Development Group Limited Financial Statement Overview

Summary

The company faces significant challenges with inconsistent revenue growth and profitability, high leverage, and negative cash flows. While asset stability is a positive factor, the overall financial health is impacted by these negative aspects.

Income Statement

The company has shown fluctuating revenue over the years with a decline from 2022 to 2023, but a slight recovery in 2024. Gross and net profit margins have been inconsistent, indicating challenges in maintaining profitability. The EBIT and EBITDA margins show a moderate level of operational efficiency. However, the overall revenue growth trend is concerning, impacting the income statement score.

Balance Sheet

The balance sheet shows a substantial debt-to-equity ratio, suggesting high leverage, which poses financial risk. Stockholders' equity has remained relatively stable, indicating resilience. The equity ratio is moderate, providing some financial stability. However, the high total liabilities relative to assets reflect potential financial constraints.

Cash Flow

The cash flow statement reveals significant challenges with consistently negative free cash flow and operating cash flow over the years. This indicates cash flow issues impacting liquidity and financial flexibility. The company needs to improve cash generation from operations to enhance its cash flow score.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	552.64M	740.01M	1.28B	1.17B	931.69M
Gross Profit	204.47M	296.74M	252.35M	272.31M	186.22M
EBITDA	210.04M	243.39M	167.12M	203.51M	100.59M
Net Income	38.63M	68.00M	76.07M	104.22M	121.37M
Balance Sheet
Total Assets	8.38B	10.57B	10.01B	8.17B	3.91B
Cash, Cash Equivalents and Short-Term Investments	1.06B	726.26M	595.27M	1.45B	972.91M
Total Debt	4.91B	6.76B	6.22B	4.43B	345.46M
Total Liabilities	5.61B	7.71B	7.07B	5.03B	921.48M
Stockholders Equity	2.76B	2.86B	2.93B	3.13B	2.98B
Cash Flow
Free Cash Flow	0.00	-375.58M	-2.89B	-3.49B	-711.40M
Operating Cash Flow	2.20B	-375.25M	-2.43B	-3.48B	-586.34M
Investing Cash Flow	0.00	73.00M	-441.81M	30.83M	569.46M
Financing Cash Flow	-2.05B	535.23M	2.04B	3.96B	68.36M

China Chengtong Development Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0217, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.09, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 74.06 is Negative, neither overbought nor oversold. The STOCH value of 71.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0217.

China Chengtong Development Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1109	76 Outperform	HK$214.64B	7.74	9.66%	8.11%	9.97%	-19.80%
0836	71 Outperform	HK$99.40B	6.47	15.59%	7.20%	1.89%	29.67%
0688	70 Neutral	$153.01B	9.03	4.15%	4.29%	-10.21%	-40.22%
0217	64 Neutral	€726.25M	18.77	1.36%	1.64%	-25.32%	-42.98%
Sector *	58 Neutral	HK$16.37B	4.50	-5.52%	4.91%	-3.57%	-61.41%
2777	46 Neutral	$4.05B	―	-71.13%	―	-50.18%	12.86%
0339	17 Underperform	HK$47.52M	―	-245.26%	―	64.26%	6.67%

China Chengtong Development Group Limited Corporate Events

China Chengtong Delays Circular Dispatch for Major Transaction

China Chengtong Development Group Limited announced a delay in the dispatch of a circular related to a major sale and leaseback transaction with Ganlong Double Track Railway (Fujian) Co., Ltd. The company has obtained a waiver from the Stock Exchange to extend the deadline for dispatching the circular to 13 May 2025, allowing additional time to finalize the necessary information. This delay and subsequent waiver highlight the company’s ongoing efforts to comply with regulatory requirements while managing complex financial transactions.

China Chengtong Clarifies Financial Results for 2024

China Chengtong Development Group Limited issued a clarification announcement regarding its final results for the year ended December 31, 2024. The announcement addresses clerical errors in the previously released financial information, specifically concerning the pledge of assets and auditor’s remuneration. The revised figures indicate a decrease in leasing and trade receivables used as security for bank borrowings and ABS, reflecting a change in the company’s financial positioning. The announcement reassures stakeholders that other information in the original results remains unchanged.

China Chengtong Announces Major Sale and Leaseback Transaction

China Chengtong Development Group Limited announced a major transaction involving a sale and leaseback arrangement through its subsidiary, Chengtong Financial Leasing. This transaction, which involves assets from a subsidiary of Sinosteel Group Co., Ltd., is significant due to its size, requiring shareholder approval under Hong Kong’s Listing Rules. The arrangement is part of a series of transactions linked to China Baowu, highlighting the company’s strategic partnerships and its role in facilitating financial operations for major industrial players.

China Chengtong Delays Circular Dispatch for Major Transaction

China Chengtong Development Group Limited announced a delay in the dispatch of a circular related to a major transaction involving a sale and leaseback arrangement with Yuxi Dahongshan Mining Co., Ltd. The company has obtained a waiver from the Stock Exchange to extend the deadline for dispatching the circular to 13 May 2025, allowing additional time to finalize the necessary information.

China Chengtong Announces Major Sale and Leaseback Transaction

China Chengtong Development Group Limited announced a major transaction involving a sale and leaseback arrangement through its subsidiary, Chengtong Financial Leasing, with a lessee connected to China State Railway Group Co., Ltd. This arrangement, combined with previous transactions, constitutes a major transaction under Hong Kong’s Listing Rules, requiring shareholder approval, which has been obtained from its controlling shareholder, China Chengtong Hong Kong Company Limited, thus negating the need for a general meeting.

China Chengtong Declares Final Cash Dividend for 2024

China Chengtong Development Group Limited has announced a final cash dividend of HKD 0.002 per share for the financial year ending December 31, 2024. The ex-dividend date is set for July 2, 2025, with the payment date scheduled for July 18, 2025. This announcement may impact shareholders and investors as it reflects the company’s financial decisions and shareholder returns.

China Chengtong Reports 25% Revenue Decline in 2024 Amid Economic Uncertainties

China Chengtong Development Group Limited announced its 2024 financial results, revealing a 25% decrease in revenue to approximately HK$552.64 million due to a cautious approach in new leasing business amidst economic uncertainties. The company’s consolidated profit after tax fell by 43% to HK$38.75 million, impacted by a decrease in gross profit margin and fair value loss on investment properties. Despite these challenges, the company maintained a healthy financial position with a sound interest coverage ratio and declared a final dividend of HK0.20 cent.

China Chengtong Development Group Issues Profit Warning for FY2024

China Chengtong Development Group Limited announced a significant decrease in its consolidated profit for the fiscal year 2024, with expectations of profit after tax ranging between HK$37 million to HK$39 million, marking a drop of 43% to 46% from the previous year. This downturn was attributed to external factors such as fluctuating interest rates, global inflation, geopolitical tensions, and economic growth challenges, which affected their leasing revenue and investment property values. Despite these challenges, the company managed to partially offset losses through a reduction in impairment losses and finance costs.

China Chengtong Delays Circular Dispatch for Major Transaction

China Chengtong Development Group Limited announced a delay in the dispatch of a circular related to a major transaction, the Leased Assets Transfer Business Master Agreement. The company received approval from the Stock Exchange to extend the deadline for dispatching the circular to 21 February 2025, allowing additional time to prepare and finalize the necessary information. This extension helps ensure compliance with regulatory requirements and maintains transparency for stakeholders.