Chinney Alliance Group Limited (0385) AI Stock Analysis

• Market Cap: HK$288.53M
• Dividend Yield: 5.26%
• Average Volume (3M): 11.85K
• Price to Earnings (P/E): 5.8
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: HK$0.49 ▲(5.11% 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, an investment holding company, primarily provides building related contracting services for public and private sectors. It operates through six segments: Plastic and Chemical Products, Building Related Contracting Services, Foundation Piling and Ground Investigation, Building Construction, Aviation, and Others. The company offers building related contracting services, including engineering contracting services in the air-conditioning industry and maintenance services; foundation piling, and drilling and site investigation services; and superstructure construction work services, as well as imports, markets, and distributes plastic and chemical products. It is also involved in the distribution and installation of aviation systems and other hi-tech products, as well as mechanical, electrical, and building supplies; property holding and development business; contracting of building aluminum works; treasury functions; trading of electrical, air-conditioning, and other building supply products; and maintenance of air-conditioning, electrical generators, water pumps, and fire prevention and fighting systems. In addition, the company trades in building decoration materials, generators, and electrical and mechanical engineering materials and equipment. Further, it is involved in the basement construction works; agency trading of industrial products; equipment and machinery leasing; construction material testing; design, installation, repair, and maintenance of electrical and mechanical systems; trading of electrical installation products; provision of management services; installation of air-conditioning systems; and manufacturing of cable containment products. The company operates in Hong Kong, Mainland China, Macau, and Singapore. Chinney Alliance Group Limited is headquartered in Central, Hong Kong.

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: 0.47
• 50DMA: Positive
• 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:0385, the sentiment is Positive. The current price of 0.47 is below the 20-day moving average (MA) of 0.47, above the 50-day MA of 0.44, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 57.15 is Neutral, neither overbought nor oversold. The STOCH value of 63.49 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$288.53M	5.79	2.37%	5.26%	9.48%	-53.42%
1582	65 Neutral	HK$172.50M	4.09	6.32%	9.71%	27.42%	-32.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$182.00M	7.48	6.66%	15.38%	13.59%	-12.52%
2863	54 Neutral	HK$210.30M	-11.34	-1.47%	8.33%	0.94%	82.30%
6182	49 Neutral	HK$592.00M	1,233.33	0.47%	―	144.67%	―
1707	46 Neutral	HK$105.84M	-6.85	-9.58%	―	3.97%	14.02%