Asia Allied Infrastructure Holdings Limited (0711) AI Stock Analysis

• Market Cap: HK$831.46M
• Dividend Yield: 5.01%
• Average Volume (3M): 317.76K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.04
• Revenue Growth: 3.14%
• EPS Growth: -480.05%
• Country: HK
• Employees: 6,400
• Sector: Industrials
• Sector Strength: 76
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,857,139,600
• 10 Day Avg. Volume: 452,250
• 30 Day Avg. Volume: 317,760
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: HK$0.50 ▲(11.11% Upside)

The overall stock score is primarily impacted by the company's financial struggles, including declining profitability and high leverage. While technical indicators show some positive short-term trends, the valuation remains unattractive due to negative earnings and lack of dividends. The absence of earnings call data and corporate events means these factors do not influence the score.

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 primarily through its construction and civil engineering activities. The company undertakes large-scale infrastructure projects, which include the construction of roads, bridges, and other civil engineering works, earning income through project contracts. Key revenue streams include fixed-price contracts, which provide stable income, and cost-plus contracts that allow for profit margins based on incurred costs. Additionally, the company may engage in joint ventures or partnerships with other firms to secure larger projects, thereby expanding its operational capacity and potential revenue. Factors contributing to earnings include government infrastructure spending, demand for urban development projects, and the company's reputation and expertise in successfully delivering complex engineering solutions.

Asia Allied Infrastructure Holdings Limited Financial Statement Overview

Summary

The company faces financial challenges with declining revenue, negative profitability, high leverage, and liquidity issues. The income statement, balance sheet, and cash flow analysis all indicate financial stress.

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	9.44B	9.06B	8.78B	8.18B	7.72B	7.53B
Gross Profit	377.25M	396.65M	575.98M	482.25M	412.57M	278.40M
EBITDA	13.28M	34.22M	361.29M	135.68M	38.76M	-39.04M
Net Income	-260.33M	-274.04M	72.09M	105.09M	122.00M	-184.51M
Balance Sheet
Total Assets	8.95B	8.94B	8.96B	8.62B	8.46B	8.57B
Cash, Cash Equivalents and Short-Term Investments	1.28B	1.26B	1.31B	1.42B	1.46B	1.57B
Total Debt	3.37B	3.33B	3.20B	2.82B	3.14B	3.27B
Total Liabilities	6.68B	6.58B	6.43B	6.14B	6.05B	6.23B
Stockholders Equity	2.20B	2.23B	2.46B	2.44B	2.38B	2.29B
Cash Flow
Free Cash Flow	-14.85M	248.92M	-632.71M	-23.20M	-132.14M	72.16M
Operating Cash Flow	655.00K	294.67M	-629.01M	-5.52M	-113.96M	172.49M
Investing Cash Flow	-27.39M	81.52M	94.67M	219.25M	163.54M	84.06M
Financing Cash Flow	476.67M	-138.23M	75.14M	-222.40M	-167.90M	175.59M

Asia Allied Infrastructure Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0711, the sentiment is Positive. The current price of 0.45 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.43, and above the 200-day MA of 0.44, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.41 is Neutral, neither overbought nor oversold. The STOCH value of 15.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1727	69 Neutral	HK$951.15M	5.14	2.79%	―	-26.45%	-3.13%
1662	64 Neutral	HK$1.26B	31.62	8.13%	―	33.22%	80.73%
0687	64 Neutral	HK$1.03B	16.23	5.28%	11.48%	11.24%	64.66%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
3928	55 Neutral	HK$2.25B	―	-2.26%	―	34.69%	41.09%
0711	48 Neutral	HK$831.46M	―	-11.69%	5.01%	3.14%	-480.05%
1780	44 Neutral	HK$669.60M	132.53	-5.43%	―	-61.56%	-2.67%

Asia Allied Infrastructure Holdings Limited Corporate Events

Asia Allied Infrastructure Announces AGM and Key Resolutions

Asia Allied Infrastructure Holdings Limited has announced its upcoming annual general meeting scheduled for August 26, 2025, where key agenda items include the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, the meeting will consider resolutions to authorize the board to issue additional shares, which could impact the company’s capital structure and shareholder value.

Asia Allied Infrastructure Announces Change in Share Registrar

Asia Allied Infrastructure Holdings Limited has announced a change in its Hong Kong branch share registrar and transfer office, effective from July 21, 2025. The new registrar will be Tricor Investor Services Limited, and all share transfer applications and uncollected share certificates will be managed by them from the effective date. This change is expected to streamline the company’s share registration and transfer processes, potentially enhancing operational efficiency and stakeholder engagement.

Asia Allied Infrastructure Announces Board of Directors and Committee Roles

Asia Allied Infrastructure Holdings Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This announcement highlights the leadership structure within the company, which is crucial for strategic decision-making and maintaining corporate governance. The board consists of executive, non-executive, and independent non-executive directors, with specific members assigned to various committees, ensuring a comprehensive oversight of the company’s operations.

Asia Allied Infrastructure Enters Strategic Partnership with Dynagreen

Asia Allied Infrastructure Holdings Limited has entered into a non-legally binding strategic cooperation agreement with Dynagreen Environmental Protection Group Co., Ltd. to explore and promote green industries and infrastructure projects, particularly in regions covered by the Belt and Road Initiative. This partnership aims to leverage Dynagreen’s expertise in environmental protection and Asia Allied’s infrastructure management experience to enhance business expansion capabilities. The agreement includes a regular communication mechanism and is valid for five years, with potential extensions.

Asia Allied Infrastructure Reports Annual Financial Loss for 2025

Asia Allied Infrastructure Holdings Limited reported its annual financial results for the year ending March 31, 2025, showing a total revenue of HK$9,055,006,000 but a loss attributable to shareholders of HK$274,039,000. The company experienced a decrease in gross profit compared to the previous year, with significant administrative and finance costs contributing to the overall loss. The results highlight challenges in cost management and profitability, impacting the company’s financial health and potentially influencing its market positioning and stakeholder confidence.

Asia Allied Infrastructure Appoints New Non-Executive Director

Asia Allied Infrastructure Holdings Limited has announced the appointment of Mr. Chung Ho Tai, Francke as a non-executive director, effective from June 30, 2025. Mr. Chung brings over 25 years of experience in accounting, finance, and management, with a strong background in business transformation and corporate strategic planning. His appointment is expected to enhance the company’s strategic direction and operational efficiency, potentially impacting its market positioning positively.

Asia Allied Infrastructure Issues Profit Warning Amid Expected Losses

Asia Allied Infrastructure Holdings Limited has issued a profit warning, forecasting a net loss of up to HK$275 million for the fiscal year ending March 31, 2025, compared to a net profit of HK$72 million the previous year. This anticipated loss is primarily due to a write-off of contract assets from certain projects and the absence of gains from the previous year’s disposal of leasehold land. The financial information is preliminary and unaudited, with final results expected to be published on June 26, 2025. Stakeholders are advised to exercise caution when dealing with the company’s securities.

Asia Allied Infrastructure Schedules Board Meeting for Annual Results

Asia Allied Infrastructure Holdings Limited has announced a board meeting scheduled for June 26, 2025, to review and approve the company’s annual results for the fiscal year ending March 31, 2025. The meeting will also consider the recommendation for a final dividend, which could impact shareholder returns and reflect the company’s financial health.