Mingfa Group (International) Co. Ltd. (0846) AI Stock Analysis

• Market Cap: HK$1.02B
• Dividend Yield: N/A
• Average Volume (3M): 197.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -25.51%
• EPS Growth: -158.20%
• Country: HK
• Employees: 3,382
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.05
• Shares Outstanding: 6,093,451,000
• 10 Day Avg. Volume: 43,400
• 30 Day Avg. Volume: 197,133
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.06
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 0.80
• 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

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Mingfa Group's stock score is primarily impacted by its financial performance, which shows significant challenges with declining revenue and profitability. Technical analysis provides a slightly positive outlook with short-term momentum, but the valuation remains a major concern due to the negative P/E ratio. The absence of earnings call data and corporate events limits additional insights.

Mingfa Group (International) Co. Ltd. Business Overview & Revenue Model

Company Description

Mingfa Group (International) Company Limited, an investment holding company, engages in the property development and leasing, and hotel management businesses in the People's Republic of China. The company operates through three segments: Property Development, Hotel, and Property Investment and Management. The Property Development segment develops commercial and residential real estate properties. The Hotel segment operates hotels. The Property Investment and Management segment invests in properties; and provides management and security services to residential, hotel, and commercial properties. It also engages in the manufacture and sale of furniture; trade of construction materials; and provision of sports services, as well as consultancy services. The company was founded in 1994 and is headquartered in Nanjing, the People's Republic of China. Mingfa Group (International) Company Limited is a subsidiary of Galaxy Earnest Limited.

How the Company Makes Money

Mingfa Group generates revenue through multiple streams, primarily from the sale of textiles and garments, which constitute a significant portion of its business. The company also earns income from its electronics division, where it manufactures and distributes consumer electronics and components. Additionally, revenue is generated through construction materials, which includes the supply of essential building products. Key partnerships with retailers and distributors enhance its market reach, while its presence in international markets contributes to robust export revenues. The company's focus on quality control and customer satisfaction fosters repeat business and long-term contracts, further solidifying its financial performance.

Mingfa Group (International) Co. Ltd. Financial Statement Overview

Summary

Mingfa Group faces significant financial challenges, with a sharp decline in revenue and profitability. The income statement shows a negative net income margin and declining revenue, indicating operational inefficiencies. The balance sheet is stable with low leverage, but declining equity and negative returns are concerning. Cash flow improvements are positive, yet reliance on external financing poses a risk.

Income Statement

The income statement indicates significant challenges with profitability. The company reported a negative net income margin of -25.48% in 2024, compared to -4.91% in 2023. Revenue fell by 26.21% from 2023 to 2024, showing a concerning trend. The negative EBIT and EBITDA margins further highlight operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is 0.13, indicating manageable leverage levels. However, the return on equity has been negative in 2024, pointing to poor returns for shareholders. The equity ratio stands at 25.22%, suggesting a stable capital structure, but declining equity over time is a concern.

Cash Flow

The cash flow statement shows some positive signs, with free cash flow improving significantly in 2024. The operating cash flow to net income ratio is favorable, indicating efficient cash generation despite net losses. However, the reliance on financing activities to manage cash flow highlights potential sustainability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.52B	7.03B	9.52B	10.57B	16.42B	12.86B
Gross Profit	2.08B	1.52B	1.94B	2.34B	5.01B	3.88B
EBITDA	867.11M	-964.53M	324.49M	1.14B	3.26B	2.64B
Net Income	-467.13M	-1.79B	-467.13M	47.96M	1.88B	1.08B
Balance Sheet
Total Assets	70.67B	62.33B	70.67B	71.19B	73.75B	76.11B
Cash, Cash Equivalents and Short-Term Investments	1.78B	1.17B	1.78B	2.88B	3.67B	3.57B
Total Debt	2.52B	2.12B	2.52B	2.65B	3.48B	4.84B
Total Liabilities	51.65B	45.53B	51.65B	51.57B	54.29B	58.59B
Stockholders Equity	17.52B	15.72B	17.52B	17.98B	17.94B	16.06B
Cash Flow
Free Cash Flow	-487.27M	1.23B	-487.27M	-259.90M	737.40M	384.03M
Operating Cash Flow	-459.13M	1.24B	-459.13M	69.96M	1.01B	489.26M
Investing Cash Flow	-102.15M	984.53M	-102.15M	228.81M	103.36M	723.20M
Financing Cash Flow	-551.72M	-2.79B	-551.72M	-869.79M	-1.02B	-1.02B

Mingfa Group (International) Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0846, the sentiment is Positive. The current price of 0.17 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.15, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.83 is Neutral, neither overbought nor oversold. The STOCH value of 98.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0846.

Mingfa Group (International) Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0496	61 Neutral	762.16M	9.42	1.67%	―	10.78%	-12.42%
1243	56 Neutral	592.80M	-0.61	-28.08%	―	321.15%	-33.40%
0846	45 Neutral	HK$1.02B	―	-12.55%	―	-25.51%	-158.20%
1628	38 Underperform	390.24M	-0.02	95.37%	―	-62.71%	-16.95%
3688	20 Underperform	607.47M	-0.30	―	―	53.69%	-41.80%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Mingfa Group (International) Co. Ltd. Corporate Events

Mingfa Group Announces 2025 Interim Results

Mingfa Group (International) Co. Ltd. has announced its unaudited interim results for the six months ending June 30, 2025. The announcement, which adheres to the Hong Kong Stock Exchange’s listing rules, indicates that the interim report will soon be available on both the company’s and the Stock Exchange’s websites. This release reflects the company’s ongoing commitment to transparency and regulatory compliance, potentially impacting its market perception and stakeholder confidence.

Mingfa Group Updates on PRC Subsidiaries’ Board Restructuring

Mingfa Group (International) Co. Ltd. announced a progress update regarding the restructuring of the boards of directors for its PRC subsidiaries. As of the announcement date, two subsidiaries have submitted applications for director changes, awaiting approval from local regulatory authorities. The completion of the restructuring is contingent upon these approvals, and the company will continue to provide monthly updates on the progress.

Mingfa Group Issues Profit Warning Amidst Declining Property Values

Mingfa Group has issued a profit warning, indicating an expected loss of RMB200 million to RMB300 million for the first half of 2025, contrasting with a profit of RMB6.7 million in the same period of 2024. This anticipated loss is primarily due to a valuation loss on investment properties and a decrease in revenue, attributed to a general decline in the market value of commercial properties in China.

Mingfa Group Announces Board Meeting to Review Interim Results

Mingfa Group (International) Co. Ltd. has announced a board meeting scheduled for August 29, 2025, to discuss and approve the unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider the payment of an interim dividend, which could impact the company’s financial strategy and shareholder returns.

Mingfa Group Updates on PRC Subsidiaries’ Board Restructuring

Mingfa Group (International) Co. Ltd. has announced a progress update on the restructuring of the boards of directors of its PRC subsidiaries. As of the announcement date, two subsidiaries have submitted applications for director changes, pending approval from local regulatory authorities. The restructuring will be finalized once approvals are granted, and the company will continue to provide monthly updates on the progress.

Mingfa Group Reports 17.6% Decline in First Half 2025 Sales

Mingfa Group (International) Co. Ltd. reported unaudited contracted sales of approximately RMB1.4 billion for the first half of 2025, marking a 17.6% decrease compared to the same period in 2024. This decline in sales may impact the company’s market positioning and stakeholder confidence, as it reflects challenges in maintaining sales momentum in a competitive real estate market.

Mingfa Group Advances Board Restructuring in PRC Subsidiaries

Mingfa Group (International) Co. Ltd. has announced progress in the restructuring of the boards of directors for its PRC subsidiaries. As of the latest update, two subsidiaries are awaiting approval from local regulatory authorities to finalize changes in their board compositions. The company plans to provide monthly updates on the restructuring process, which is crucial for aligning its governance structure with strategic goals.

Mingfa Group Updates Nomination Committee Terms

Mingfa Group (International) Co. Ltd. has revised the terms of reference for its Nomination Committee, effective June 24, 2025. The committee, primarily composed of independent non-executive directors, is tasked with overseeing the appointment of directors and ensuring compliance with listing rules. It will also review the board’s structure and composition annually, making recommendations to align with the company’s corporate strategy.

Mingfa Group Announces Changes in Nomination Committee Composition

Mingfa Group (International) Co. Ltd. has announced a change in the composition of its Nomination Committee, effective June 24, 2025. Mr. Lau Kin Hon has stepped down as a member, and Ms. Shang Xuan, an executive director, has been appointed to the committee. This change reflects the company’s ongoing adjustments in its governance structure, potentially impacting its strategic direction and stakeholder engagement.

Mingfa Group Announces New Board and Committee Structures

Mingfa Group (International) Co. Ltd. has announced changes to its board of directors, effective from June 24, 2025. The new board structure includes executive, non-executive, and independent non-executive directors, with specific roles assigned to each member. Additionally, the company has established several committees, including audit, nomination, remuneration, and risk management committees, with designated chairpersons and members. These changes are likely to impact the company’s governance and strategic direction, potentially affecting its operations and stakeholder relationships.