Asia Allied Infrastructure Holdings Limited (0711) AI Stock Analysis

• Market Cap: HK$792.24M
• Dividend Yield: 1.93%
• Average Volume (3M): 251.08K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.02
• Revenue Growth: 0.97%
• EPS Growth: N/A
• Country: HK
• Employees: 6,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 1,851,847,700
• 10 Day Avg. Volume: 58,000
• 30 Day Avg. Volume: 251,076
• PEG Ratio: <0.01
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 3.24
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: HK$0.50 ▲(16.28% Upside)

The overall stock score reflects significant financial challenges, including declining profitability and high leverage. Technical analysis shows weak momentum, and valuation metrics suggest potential overvaluation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Business Model Strength

Asia Allied Infrastructure's focus on large-scale infrastructure projects provides stable revenue streams through fixed-price and cost-plus contracts, leveraging its expertise in civil engineering to secure public and private sector projects.

Market Position

By engaging in both public and private sector projects, the company maintains a diversified portfolio, reducing dependency on any single market segment and enhancing resilience against sector-specific downturns.

Operational Capacity

Joint ventures and partnerships expand operational capacity, allowing the company to take on larger projects, increase market share, and enhance revenue potential through collaborative efforts.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting the company's ability to invest in growth opportunities and potentially impacting long-term financial stability due to increased interest obligations.

Profitability Challenges

Declining profit margins indicate operational inefficiencies and profitability challenges, which can hinder the company's ability to reinvest in business growth and innovation over the long term.

Weak Cash Generation

Weak cash generation limits the company's ability to fund operations and growth initiatives internally, potentially increasing reliance on external financing and affecting financial flexibility.

Asia Allied Infrastructure Holdings Limited Business Overview & Revenue Model

Company Description

Asia Allied Infrastructure Holdings Limited, an investment holding company, engages in civil engineering, electrical and mechanical engineering, and foundation and building construction work businesses in Hong Kong, the United Arab Emirates, and internationally. The company operates through Construction Services; Property Development and Assets Leasing; Professional Services; Non-Franchised Bus Services; and Medical Technology and Healthcare segments. It provides construction and consultancy services in the areas of civil engineering, electrical and mechanical engineering, and foundation and building construction. The company is also involved in the development, investment, sale, lease, and management of properties; and production and sale of positron emission tomography radiopharmaceuticals for medical use. In addition, it offers security, tunnel, and facility management, as well as repair and maintenance services. Further, the company provides surveying and engineering, financing, security guard, and consultancy services, as well as non-franchised bus services. Additionally, it offers electrical and mechanical contract works. The company was formerly known as China City Construction Group Holdings Limited and changed its name to Asia Allied Infrastructure Holdings Limited in October 2016. The company was founded in 1968 and is headquartered in Cheung Sha Wan, Hong Kong. Asia Allied Infrastructure Holdings Limited is a subsidiary of GT Winners Limited.

How the Company Makes Money

Asia Allied Infrastructure Holdings Limited generates revenue through multiple streams, primarily from its construction and engineering projects. The company undertakes large-scale public and private sector contracts, often funded by government infrastructure budgets or private investments. Key revenue streams include contract income from civil engineering projects, building construction, and maintenance services. Additionally, the company may earn income through joint ventures and partnerships with other firms in the sector. Factors contributing to its earnings include the demand for infrastructure development in Asia, successful project execution, and the ability to secure new contracts through competitive bidding.

Asia Allied Infrastructure Holdings Limited Financial Statement Overview

Summary

The company faces financial challenges with declining revenue and profitability, high leverage, and liquidity issues. The income statement shows a negative growth rate and margins, the balance sheet indicates high debt, and cash flow analysis reveals weak cash generation.

Income Statement

The income statement shows a declining trend in revenue with a negative growth rate of -4.07% in the latest year. Gross profit margin has decreased to 4.38%, and net profit margin is negative at -3.03%, indicating profitability challenges. The EBIT margin is also negative, reflecting operational inefficiencies. Overall, the income statement indicates financial stress and declining profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.50, suggesting significant leverage and potential financial risk. Return on equity is negative, indicating losses for shareholders. However, the equity ratio is relatively stable, showing that equity still constitutes a significant portion of total assets. The balance sheet reflects financial stability concerns due to high leverage.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth, with a rate of -1776.26%. Operating cash flow to net income ratio is low at 0.045, indicating weak cash generation relative to net income. The free cash flow to net income ratio is relatively high at 0.84, but overall cash flow performance is weak, highlighting liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.06B	9.06B	8.78B	8.18B	7.72B	7.53B
Gross Profit	381.77M	396.65M	575.98M	482.25M	412.57M	278.40M
EBITDA	5.98M	34.22M	350.70M	135.68M	279.84M	-39.55M
Net Income	-274.04M	-274.04M	72.09M	105.09M	122.00M	-184.51M
Balance Sheet
Total Assets	8.94B	8.94B	8.96B	8.62B	8.46B	8.57B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.26B	1.31B	1.42B	1.46B	1.57B
Total Debt	3.33B	3.33B	3.20B	2.82B	3.14B	3.27B
Total Liabilities	6.58B	6.58B	6.43B	6.14B	6.05B	6.23B
Stockholders Equity	2.23B	2.23B	2.46B	2.44B	2.38B	2.29B
Cash Flow
Free Cash Flow	281.35M	248.92M	-632.71M	-23.20M	-132.14M	72.16M
Operating Cash Flow	294.67M	294.67M	-629.01M	-5.52M	-113.96M	172.49M
Investing Cash Flow	41.78M	81.52M	94.67M	219.25M	163.54M	84.06M
Financing Cash Flow	60.39M	-138.23M	75.14M	-222.40M	-167.90M	175.59M

Asia Allied Infrastructure Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.43
• 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:0711, the sentiment is Neutral. The current price of 0.43 is below the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.43, and above the 200-day MA of 0.43, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.26 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 Neutral sentiment for HK:0711.

Asia Allied Infrastructure Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1662	60 Neutral	HK$813.70M	16.76	8.67%	―	-16.13%	5.48%
1727	60 Neutral	HK$678.13M	4.24	2.36%	―	-25.78%	-18.64%
0687	60 Neutral	HK$1.13B	17.54	5.28%	13.24%	11.24%	64.66%
3928	50 Neutral	HK$4.30B	-792.04	-2.26%	―	34.69%	41.09%
1780	48 Neutral	HK$421.60M	-45.03	-5.65%	5.26%	-55.42%	-281.93%
0711	45 Neutral	HK$792.24M	15.52	2.28%	1.93%	0.97%	―

Asia Allied Infrastructure Holdings Limited Corporate Events

Asia Allied Infrastructure Sets New Nomination Committee Guidelines

Asia Allied Infrastructure Holdings Limited has outlined the terms of reference for its Nomination Committee, which will be effective from December 1, 2025. The committee will be primarily composed of Independent Non-executive Directors and will include at least one member of a different gender, emphasizing diversity. The committee’s responsibilities include reviewing the board’s structure, size, and composition, as well as assessing the Board Diversity Policy and Nomination Policy to ensure alignment with the company’s corporate strategy.

The most recent analyst rating on (HK:0711) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Asia Allied Infrastructure Holdings Limited stock, see the HK:0711 Stock Forecast page.

Asia Allied Infrastructure Secures HK$1.8 Billion Loan Facility

Asia Allied Infrastructure Holdings Limited has entered into a facility agreement for a three-year term loan and revolving credit facilities amounting to HK$1.8 billion with a group of major commercial banks in Hong Kong. This agreement includes covenants requiring the Pang Family to maintain significant ownership and management control, with any breach potentially leading to an event of default, impacting the company’s financial stability and stakeholder interests.

The most recent analyst rating on (HK:0711) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Asia Allied Infrastructure Holdings Limited stock, see the HK:0711 Stock Forecast page.

Asia Allied Infrastructure Reports Strong Interim Results for 2025

Asia Allied Infrastructure Holdings Limited reported a significant turnaround in its financial performance for the six months ending September 30, 2025. The company achieved a total revenue of HK$4.93 billion, marking an increase from the previous year, and recorded a profit attributable to shareholders of HK$61.18 million compared to a loss in the same period last year. This improvement reflects a stronger market position and operational efficiency, potentially benefiting stakeholders and enhancing the company’s industry standing.

The most recent analyst rating on (HK:0711) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Asia Allied Infrastructure Holdings Limited stock, see the HK:0711 Stock Forecast page.

Asia Allied Infrastructure Declares Interim Dividend for 2025

Asia Allied Infrastructure Holdings Limited announced an interim cash dividend of HKD 0.0083 per share for the six months ending 30 September 2025. This announcement reflects the company’s ongoing financial performance and commitment to delivering shareholder value, with the ex-dividend date set for 12 December 2025 and payment scheduled for 7 January 2026.

The most recent analyst rating on (HK:0711) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Asia Allied Infrastructure Holdings Limited stock, see the HK:0711 Stock Forecast page.

Asia Allied Infrastructure Schedules Board Meeting for Interim Results

Asia Allied Infrastructure Holdings Limited has announced a board meeting scheduled for November 27, 2025, to discuss and approve the interim financial results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This announcement indicates the company’s ongoing efforts to maintain transparency with stakeholders and could impact investor confidence and market positioning.

The most recent analyst rating on (HK:0711) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Asia Allied Infrastructure Holdings Limited stock, see the HK:0711 Stock Forecast page.

Asia Allied Infrastructure Announces Positive Financial Turnaround

Asia Allied Infrastructure Holdings Limited announced a significant financial turnaround, expecting a net profit of at least HK$60 million for the six months ending September 2025, compared to a net loss of approximately HK$264 million in the same period the previous year. This improvement is attributed to the write-off of contract assets from past projects and the normalization of construction operations, marking a positive shift in the company’s financial health and operational stability.

The most recent analyst rating on (HK:0711) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Asia Allied Infrastructure Holdings Limited stock, see the HK:0711 Stock Forecast page.