Chinney Alliance Group Limited (0385) AI Stock Analysis

• Market Cap: HK$229.04M
• Dividend Yield: 5.43%
• Average Volume (3M): 11.85K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.47
• Revenue Growth: 9.48%
• EPS Growth: -53.42%
• Country: HK
• Employees: 2,130
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 594,899,300
• 10 Day Avg. Volume: 14,560
• 30 Day Avg. Volume: 11,848
• PEG Ratio: 0.04
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.03
• P/FCF Ratio: -3.61
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$0.49 ▲(7.39% Upside)

Chinney Alliance Group Limited's stock is supported by strong valuation metrics, including a low P/E ratio and high dividend yield, making it attractive for value investors. The financial performance is stable, but cash flow inconsistencies need attention. Technical indicators show positive momentum, though the stock may be overbought.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Stable Profitability Margins

Stable profitability margins suggest efficient cost management and pricing strategies, which are crucial for maintaining competitive advantage.

Strong Capital Structure

A robust capital structure with moderate leverage enhances financial flexibility, allowing for strategic investments and growth opportunities.

Negative Factors

Cash Flow Inconsistencies

Inconsistent cash flow generation can hinder the company's ability to fund operations and investments, posing a risk to financial stability.

Low Net Profit Margin

A low net profit margin indicates limited profitability after expenses, suggesting potential inefficiencies or high costs that need addressing.

Increased Total Liabilities

Rising liabilities can pressure financial resources and equity, requiring prudent management to avoid impacting long-term financial health.

Chinney Alliance Group Limited Business Overview & Revenue Model

Company Description

Chinney Alliance Group Limited (0385) is a diversified investment holding company based in Hong Kong, primarily engaged in the construction and engineering sectors. The company operates through various subsidiaries and is involved in civil engineering, construction, and property development. Chinney Alliance also engages in the manufacturing and sale of construction materials, as well as the provision of maintenance services, contributing to its broad portfolio of operations across multiple sectors.

How the Company Makes Money

Chinney Alliance Group Limited generates revenue through several key streams, including construction contracts, civil engineering projects, and property development activities. The company earns income from the execution of large-scale infrastructure projects and building constructions, often secured through competitive bidding processes. Additionally, revenue is derived from the sale of construction materials, which supports its construction operations. Partnerships with government entities and private sector clients are pivotal to securing ongoing projects, while strategic collaborations can enhance its market reach and project capabilities. The company's diversified service offerings and focus on quality and timely delivery help to maintain a steady influx of contracts, bolstering its overall financial performance.

Chinney Alliance Group Limited Financial Statement Overview

Summary

Chinney Alliance Group Limited shows consistent revenue growth and stable profitability margins. The balance sheet is strong with moderate leverage, but cash flow generation is inconsistent, indicating potential liquidity management issues.

Income Statement

Chinney Alliance Group Limited has demonstrated consistent revenue growth, with a notable increase of 28.6% from 2023 to 2024. The gross profit margin has remained stable, averaging around 10% over recent years. While the net profit margin has been modest, it showed a positive trend, increasing to 0.66% in 2024. The EBIT and EBITDA margins have been stable, indicating efficient cost management. However, the relatively low net profit margin suggests room for improvement in net income conversion.

Balance Sheet

The company maintains a healthy equity ratio of approximately 34.3%, showing a strong capital structure. A debt-to-equity ratio of 0.48 indicates moderate leverage, allowing for financial flexibility. Return on equity (ROE) has been improving, reaching 2.43% in 2024, reflecting better profitability on shareholders' investments. However, there is potential risk in the form of increased total liabilities, which need careful management to prevent pressure on equity.

Cash Flow

Chinney Alliance Group Limited's cash flow statements reveal challenges in free cash flow generation, with fluctuating trends. The operating cash flow to net income ratio has been inconsistent, with operating cash flows occasionally falling to zero, as in 2024. Though free cash flow showed positive growth in 2023, the absence of free cash flow in 2024 indicates potential liquidity management issues. This necessitates attention to ensure sustainable cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.54B	7.69B	5.98B	5.90B	6.80B	4.94B
Gross Profit	724.00M	757.01M	660.26M	569.52M	646.56M	559.76M
EBITDA	232.51M	236.06M	236.74M	177.89M	261.41M	288.73M
Net Income	49.83M	50.74M	25.73M	-10.20M	77.38M	124.08M
Balance Sheet
Total Assets	6.04B	6.08B	5.57B	4.84B	4.94B	4.28B
Cash, Cash Equivalents and Short-Term Investments	1.03B	1.04B	1.07B	760.66M	648.84M	417.87M
Total Debt	999.32M	1.01B	773.63M	539.51M	551.74M	451.26M
Total Liabilities	3.74B	3.79B	3.28B	2.58B	2.67B	2.15B
Stockholders Equity	2.09B	2.08B	2.11B	2.09B	2.12B	2.00B
Cash Flow
Free Cash Flow	114.12M	-60.99M	85.46M	133.28M	139.43M	-312.10M
Operating Cash Flow	225.01M	42.15M	198.56M	204.76M	252.55M	-162.60M
Investing Cash Flow	-379.49M	-347.86M	-112.53M	-74.17M	-116.33M	-143.78M
Financing Cash Flow	87.31M	279.23M	224.27M	-11.52M	96.41M	82.48M

Chinney Alliance Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.46
• 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:0385, the sentiment is Positive. The current price of 0.46 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.40, and above the 200-day MA of 0.39, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 81.45 is Negative, neither overbought nor oversold. The STOCH value of 48.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0385.

Chinney Alliance Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0385	72 Outperform	HK$229.04M	4.59	2.37%	5.43%	9.48%	-53.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$192.00M	7.89	6.66%	15.38%	13.59%	-12.52%
1582	61 Neutral	HK$167.50M	3.97	6.32%	10.00%	27.42%	-32.34%
2863	54 Neutral	HK$243.38M	-57.94	-1.47%	8.11%	0.94%	82.30%
6182	49 Neutral	HK$760.00M	593.75	0.47%	―	144.67%	―
1707	41 Neutral	HK$63.84M	-4.13	-9.58%	―	3.97%	14.02%

Chinney Alliance Group Limited Corporate Events

Chinney Alliance Group Limited Reports Interim Financial Results for 2025

Chinney Alliance Group Limited reported its interim financial results for the six months ending June 30, 2025. The company achieved a revenue of HK$3,296,178,000, a slight decrease from the previous year, with a gross profit of HK$339,512,000. Despite a reduction in revenue, the company managed to increase its profit before tax to HK$52,835,000, compared to HK$46,861,000 in 2024. The profit for the period attributable to the owners of the company was HK$20,603,000, with earnings per share at HK3.5 cents. The total comprehensive income for the period was HK$41,099,000, showing an improvement from HK$31,538,000 in the previous year, indicating a positive impact on the company’s financial health and stakeholder confidence.

The most recent analyst rating on (HK:0385) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Chinney Alliance Group Limited stock, see the HK:0385 Stock Forecast page.

Chinney Alliance Group Schedules Board Meeting for Interim Results

Chinney Alliance Group Limited has announced that its board of directors will convene on August 28, 2025, to approve the interim financial results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Chinney Alliance Group Appoints Dr. Emily Wong as Non-Executive Director

Chinney Alliance Group Limited has appointed Dr. Emily Yen Wong as a non-executive director, effective from August 14, 2025. Dr. Wong brings extensive experience in medicine and administration, having held significant positions at the University of Washington and the University of Hong Kong. Her appointment is expected to strengthen the board’s expertise and influence, given her connections with substantial shareholders and her family’s historical involvement with the company.

Chinney Alliance Group Limited Announces Board Composition and Committee Roles

Chinney Alliance Group Limited has announced the composition of its board of directors, highlighting the roles and functions of its executive, non-executive, and independent non-executive directors. The company operates with a structured board committee system, including Audit, Remuneration, and Nomination Committees, each chaired and populated by different board members. This announcement provides clarity on the governance structure of Chinney Alliance Group Limited, potentially impacting stakeholder confidence and operational transparency.

Chinney Alliance Group Limited Updates Hong Kong Share Registrar

Chinney Alliance Group Limited has announced a change in its Hong Kong share registrar and transfer office, effective from August 12, 2025. The new registrar will be Tricor Investor Services Limited, and all applications for share transfers should be directed to them from this date. This change is part of the company’s administrative updates and may streamline operations related to share transfers, potentially impacting shareholders and stakeholders involved in these processes.