Chinney Alliance Group Limited (0385) AI Stock Analysis

• Market Cap: HK$226.06M
• Dividend Yield: 51.64%
• Average Volume (3M): 48.02K
• Price to Earnings (P/E): 4.5
• Beta (1Y): 0.47
• Revenue Growth: 28.60%
• EPS Growth: 97.00%
• Country: HK
• Employees: 2,130
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.09
• Shares Outstanding: 594,899,300
• 10 Day Avg. Volume: 6,248
• 30 Day Avg. Volume: 48,017
• PEG Ratio: -0.35
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.04
• 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: 68 Neutral
• Price Target: ―

Chinney Alliance Group Limited shows solid financial performance with growth in revenue and stable profitability. However, challenges in cash flow generation and mixed technical indicators present potential risks. The stock's strong valuation metrics, including a low P/E ratio and high dividend yield, enhance its attractiveness, contributing to an overall score of 68.

Chinney Alliance Group Limited Business Overview & Revenue Model

Company Description

Chinney Alliance Group Limited (0385) is a Hong Kong-based investment holding company engaged primarily in the distribution of chemicals and the provision of building-related contracting services. The company operates through several segments, including the Plastic and Chemical Products segment, the Building Related Contracting Services segment, and the Others segment. Its core products and services encompass the supply of construction materials, building services, and electrical and mechanical engineering services, catering to both commercial and residential projects.

How the Company Makes Money

Chinney Alliance Group Limited generates revenue through its diversified operations, primarily from the distribution of plastic and chemical products and building-related contracting services. The company earns income by supplying construction materials and providing engineering and contracting services in various construction projects. Key revenue streams include sales from the distribution of chemicals and construction materials, as well as fees and contracts awarded for building and engineering services. The company may also engage in strategic partnerships or joint ventures to enhance its service offerings and expand its market reach, contributing to its overall earnings.

Chinney Alliance Group Limited Financial Statement Overview

Summary

Chinney Alliance Group Limited exhibits growth in revenue and steady profitability margins, backed by a solid balance sheet with moderate leverage. However, inconsistent cash flow generation suggests a need for improved cash management strategies. The company's financial health is stable but requires careful monitoring of cash flows and potential liabilities.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
7.69B	5.98B	5.90B	6.80B	4.94B
	Gross Profit
757.01M	660.26M	569.52M	646.56M	559.76M
	EBIT
152.65M	110.56M	66.62M	145.21M	178.78M
	EBITDA
236.06M	236.74M	177.89M	261.41M	288.73M
	Net Income Common Stockholders
50.74M	25.73M	14.29M	77.38M	124.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.04B	1.07B	760.66M	648.84M	417.87M
	Total Assets
6.08B	5.57B	4.84B	4.94B	4.28B
	Total Debt
1.01B	773.63M	539.51M	551.74M	451.26M
	Net Debt
-33.26M	-297.37M	-221.15M	-97.09M	33.38M
	Total Liabilities
3.79B	3.28B	2.58B	2.67B	2.15B
	Stockholders Equity
2.08B	2.11B	2.09B	2.12B	2.00B
Cash Flow		Free Cash Flow
0.00	85.46M	133.28M	139.43M	-312.10M
	Operating Cash Flow
0.00	198.56M	204.76M	252.55M	-162.60M
	Investing Cash Flow
0.00	-112.53M	-74.17M	-116.33M	-143.78M
	Financing Cash Flow
0.00	209.40M	-11.52M	96.41M	82.48M

Chinney Alliance Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 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:0385, the sentiment is Positive. The current price of 0.38 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.36, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.45 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 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	68 Neutral	HK$226.06M	4.45	2.42%	51.64%	28.60%	97.00%
2196	65 Neutral	$65.48B	13.85	6.22%	1.93%	-2.82%	11.93%
Sector *	63 Neutral	$766.59M	8.52	4.79%	3.75%	1.11%	-32.36%
0323	52 Neutral	$26.36B	―	-17.87%	―	-17.35%	-278.88%
1382	50 Neutral	HK$1.82B	12.24	4.99%	21.37%	10.66%	3.88%
0197	49 Neutral	HK$35.19M	―	-22.83%	―	0.23%	-43.18%
1232	27 Underperform	HK$98.95M	―	-252.43%	―	-66.81%	21.93%

Chinney Alliance Group Limited Corporate Events

Chinney Alliance Group Limited Announces AGM and Key Resolutions

Chinney Alliance Group Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 6, 2025, in Hong Kong. The meeting will cover key agenda items such as reviewing the company’s audited financial statements for the year ended December 31, 2024, declaring a final dividend, re-electing directors, and re-appointing the auditor. Additionally, a resolution will be considered to grant the directors a mandate to issue additional shares, with certain conditions and limitations, to enhance the company’s capital management flexibility.

Chinney Alliance Group Limited Reports Increased Revenue and Profit for 2024

Chinney Alliance Group Limited reported its financial results for the year ended December 31, 2024, showing a significant increase in revenue to HK$7,692,498,000 from HK$5,981,640,000 in 2023. Despite a rise in administrative expenses and finance costs, the company’s profit for the year increased to HK$82,500,000, up from HK$56,447,000 in the previous year, indicating improved operational performance. However, the total comprehensive income for the year decreased to HK$26,864,000 from HK$67,769,000, primarily due to a deficit on revaluation of leasehold land and owned buildings.

Chinney Alliance Group Limited Declares Final Dividend for 2024

Chinney Alliance Group Limited has announced a final ordinary cash dividend of HKD 0.025 per share for the financial year ending December 31, 2024. The dividend will be paid on July 9, 2025, following shareholder approval on June 6, 2025. The ex-dividend date is set for June 11, 2025, with the book closure period running from June 13 to June 18, 2025. This announcement reflects the company’s commitment to returning value to its shareholders.

Chinney Alliance Group Schedules Board Meeting for Financial Approvals

Chinney Alliance Group Limited has announced a board meeting scheduled for March 25, 2025, to approve the final results for the year ending December 31, 2024, and to consider the recommendation of a final dividend. This meeting could impact the company’s financial strategy and shareholder returns, reflecting its ongoing operational assessments and potential market positioning.

Chinney Group Mourns the Loss of Founder Dr. James Sai-Wing Wong

Chinney Group, consisting of Chinney Investments, Hon Kwok Land Investment, Chinney Alliance Group, and Chinney Kin Wing Holdings, announced the passing of its founder, Dr. James Sai-Wing Wong, at the age of 86. Despite his passing, the company assures stakeholders that its operations will continue as usual, guided by the existing business strategies, and that there will be no impact on its operations. The company extends condolences to Dr. Wong’s family and acknowledges his significant contributions and leadership.