Asia Allied Infrastructure Holdings Limited (0711) AI Stock Analysis

• Market Cap: HK$797.56M
• Dividend Yield: 5.07%
• Average Volume (3M): 493.64K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.03
• Revenue Growth: 20.89%
• EPS Growth: -296.52%
• Country: HK
• Employees: 6,400
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): -0.15
• Shares Outstanding: 1,864,241,700
• 10 Day Avg. Volume: 859,400
• 30 Day Avg. Volume: 493,637
• PEG Ratio: -0.67
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -40.05
• 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: 56 Neutral
• Price Target: ―

Asia Allied Infrastructure Holdings Limited exhibits moderate growth and operational improvements but faces significant risks related to cash flow sustainability and high leverage. While the technical indicators suggest some upward momentum, caution is advised due to potential overbought conditions. The negative P/E ratio highlights financial challenges, though the attractive dividend yield could be a positive for some investors.

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 focused on its core operations in construction and infrastructure development. The company earns substantial income from construction contracts, where it undertakes large-scale civil engineering and building projects. Property development is another significant revenue stream, involving the development and sale or lease of residential, commercial, and industrial properties. Additionally, facility management services, including maintenance and operational support for buildings and infrastructure, contribute to the company's earnings. Strategic partnerships and joint ventures with other construction firms and developers also play a crucial role in expanding its project portfolio and enhancing revenue.

Asia Allied Infrastructure Holdings Limited Financial Statement Overview

Summary

Asia Allied Infrastructure Holdings Limited demonstrates moderate revenue growth and improved operational margins, yet faces challenges with profitability and cash flow sustainability. The company's high leverage and negative cash flows are significant risks that need addressing to ensure long-term financial stability. While there are positive trends, such as revenue growth and improved gross margins, the company must focus on enhancing cash generation and reducing debt reliance.

Income Statement

Asia Allied Infrastructure Holdings Limited shows a mixed performance in its income statement. The gross profit margin improved slightly from 5.9% to 6.6% year-over-year, indicating better cost management. However, the net profit margin decreased from 1.3% to 0.8%, suggesting increased expenses or cost pressures. Revenue grew by 7.3%, showcasing moderate growth for the company. The EBIT and EBITDA margins also improved, reflecting enhanced operational efficiency, although they remain relatively low at 1.9% and 2.7%, respectively.

Balance Sheet

The balance sheet reveals a stable yet leveraged financial position. The debt-to-equity ratio stands at 1.3, indicating a high reliance on debt financing, which is typical in the industry but poses potential risk. Return on equity decreased slightly to 2.9%, reflecting lower profitability relative to shareholders' equity. The equity ratio of 27.4% suggests a moderate buffer against liabilities, though it has room for improvement.

Cash Flow

The cash flow statement highlights significant challenges with negative operating and free cash flows, indicating potential liquidity issues. Free cash flow decreased significantly, reflecting higher capital expenditures and operational outflows. The operating cash flow to net income ratio is negative, emphasizing the difficulty in converting revenue into cash flow. The company needs to address these cash flow constraints to stabilize its financial health.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
9.44B	8.78B	8.18B	7.72B	7.53B	8.00B
	Gross Profit
377.25M	575.98M	482.25M	412.57M	278.40M	487.52M
	EBIT
-57.64M	163.51M	53.67M	-47.84M	-160.77M	54.86M
	EBITDA
13.28M	361.29M	135.68M	38.76M	-39.04M	141.17M
	Net Income Common Stockholders
-260.33M	72.09M	105.09M	122.00M	-184.51M	101.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.28B	1.31B	1.42B	1.46B	1.57B	1.15B
	Total Assets
8.95B	8.96B	8.62B	8.46B	8.57B	8.15B
	Total Debt
3.37B	3.20B	2.82B	3.14B	3.27B	2.92B
	Net Debt
2.10B	2.25B	1.40B	1.69B	1.70B	1.77B
	Total Liabilities
6.68B	6.43B	6.14B	6.05B	6.23B	5.66B
	Stockholders Equity
2.20B	2.46B	2.44B	2.38B	2.29B	2.46B
Cash Flow		Free Cash Flow
-14.85M	-632.71M	-23.20M	-132.14M	72.16M	-1.02B
	Operating Cash Flow
655.00K	-629.01M	-5.52M	-113.96M	172.49M	-683.59M
	Investing Cash Flow
-9.72M	94.67M	219.25M	163.54M	84.06M	-217.34M
	Financing Cash Flow
375.57M	75.14M	-222.40M	-167.90M	175.59M	210.54M

Asia Allied Infrastructure Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.43
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.43 is below the 20-day moving average (MA) of 0.44, below the 50-day MA of 0.44, and below the 200-day MA of 0.45, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.15 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
HSBA	82 Outperform	£151.13B	10.16	10.86%	3.40%	-3.40%	-7.51%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
0711	56 Neutral	HK$797.56M	―	-11.14%	5.07%	20.89%	-296.52%
CRGGF		$5.97B	12.16	9.94%	0.81%	―	―
CRPJF		$12.43B	6.13	15.59%	7.63%	―	―
HKXCF		$62.84B	36.19	27.96%	2.42%	―	―
SNPMF		$91.35B	8.85		27.45%	―	―