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

• Market Cap: HK$712.93M
• Dividend Yield: N/A
• Average Volume (3M): 178.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• 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: 161,100
• 30 Day Avg. Volume: 178,033
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$0.11 ▼(-21.43% Downside)

Overall score reflects primarily weak financial performance driven by sharp revenue decline and worsening losses, partially offset by improved free cash flow and low leverage. Technical indicators are mildly supportive but not decisive, while valuation is constrained by a negative P/E and no dividend yield data.

Positive Factors

Improving free cash flow

Significant improvement in free cash flow and a favorable operating cash flow-to-net income ratio indicate the business can generate cash from operations despite accounting losses. Durable cash generation reduces reliance on asset sales and supports project funding and working capital over quarters.

Low financial leverage

A low debt-to-equity ratio and a stable equity ratio provide financial flexibility for a developer through cyclical markets. Manageable leverage lowers interest burden and refinancing risk, allowing the company to pursue projects or weather downturns without forcing distressed asset sales.

Diversified real estate revenue streams

Operating across property development, leasing and property management creates multiple revenue channels and more recurring income than pure developers. This diversification can smooth cash flow across cycles and supports long-term resilience by blending transactional and recurring margins.

Negative Factors

Sharp revenue decline

A >25% year-on-year revenue drop signals material demand or execution issues for a developer. Persistent revenue contraction can delay project rollouts, reduce presales and scale, and weaken long-term cash flow generation, pressuring margins and capital return prospects over multiple quarters.

Deep and worsening losses

Substantial negative net margins and negative EBIT/EBITDA point to structural profitability problems—costs, pricing, or write-downs—that erode capital. Continued operating losses reduce equity, impair reinvestment capacity, and undermine the company's ability to generate attractive long-term returns for shareholders.

Dependence on financing activities

Despite improved operational cash flow, dependence on financing to balance cash suggests operating cash is not fully supporting capital needs. Ongoing reliance increases exposure to refinancing risk and higher funding costs, constraining durable investment in projects and margin recovery over time.

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 primarily through the development and sale of real estate properties, including residential, commercial, and industrial projects. The company's revenue model is driven by the successful completion and sale of these developments, which can include both direct sales to consumers and leasing arrangements for commercial properties. Additionally, the company earns income from property management services, maintaining and managing the properties it owns or has developed. Significant partnerships with local governments and other developers can enhance project opportunities and streamline operations, further contributing to the company's financial performance.

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

Summary

Weak profitability and operating performance: revenue fell 26.21% (2023→2024) and net margin deteriorated to -25.48% with negative EBIT/EBITDA margins. Balance sheet leverage is manageable (debt-to-equity 0.13), and cash flow improved with better free cash flow and favorable operating cash flow vs. net income, but reliance on financing and declining equity/negative ROE remain concerns.

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	5.94B	7.03B	9.52B	10.57B	16.42B	12.86B
Gross Profit	1.02B	1.52B	1.94B	2.34B	5.01B	3.88B
EBITDA	-107.15M	-964.53M	324.49M	1.14B	3.26B	2.64B
Net Income	-2.07B	-1.79B	-467.13M	47.96M	1.88B	1.08B
Balance Sheet
Total Assets	59.68B	62.33B	70.67B	71.19B	73.75B	76.11B
Cash, Cash Equivalents and Short-Term Investments	779.03M	1.17B	1.78B	2.88B	3.67B	3.57B
Total Debt	7.83B	2.12B	2.52B	2.65B	3.48B	5.04B
Total Liabilities	43.14B	45.53B	51.65B	51.57B	54.29B	58.59B
Stockholders Equity	15.45B	15.72B	17.52B	17.98B	17.94B	16.06B
Cash Flow
Free Cash Flow	603.30M	1.23B	-487.27M	-259.90M	737.40M	384.03M
Operating Cash Flow	607.13M	1.24B	-459.13M	69.96M	1.01B	489.26M
Investing Cash Flow	1.12B	984.53M	-102.15M	228.81M	103.36M	723.20M
Financing Cash Flow	-2.09B	-2.79B	-551.72M	-869.79M	-1.02B	-1.02B

Mingfa Group (International) Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.14 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.11, and above the 200-day MA of 0.12, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 56.84 is Neutral, neither overbought nor oversold. The STOCH value of 48.81 is Neutral, 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0496	60 Neutral	HK$688.70M	8.72	1.50%	―	10.78%	-12.42%
0846	51 Neutral	HK$712.93M	-0.32	-12.55%	―	-25.51%	-158.20%
1243	51 Neutral	HK$562.40M	-0.39	-38.17%	―	213.63%	-61.18%
3688	43 Neutral	HK$473.27M	-0.25	-29.51%	―	53.69%	-33.81%
1628	40 Underperform	HK$163.46M	>-0.01	―	―	-62.71%	-16.95%
1176	39 Underperform	HK$389.43M	-0.12	-94.81%	―	27.88%	-56.97%

Mingfa Group (International) Co. Ltd. Corporate Events

Mingfa Group’s 2025 Contracted Sales Halve Amid Ongoing Property Market Pressures

Mingfa Group (International) Company Limited reported unaudited contracted sales of approximately RMB2.4 billion for the year ended 31 December 2025, marking a sharp decline of about 54.7% from roughly RMB5.3 billion a year earlier. The sales were generated from a total contracted area of about 381,440 square metres at an average selling price of RMB6,331 per square metre, with key contributions from cities such as Nanjing, Zibo, Ma’anshan, Danzhou and Changsha, while no single market dominated the portfolio. The steep year-on-year drop in contracted sales underlines the ongoing pressures facing the company amid a challenging Chinese property market and may signal continued headwinds for its revenue and cash flow, prompting the company to caution shareholders and potential investors against placing undue reliance on these unaudited figures.

The most recent analyst rating on (HK:0846) stock is a Hold with a HK$0.12 price target. To see the full list of analyst forecasts on Mingfa Group (International) Co. Ltd. stock, see the HK:0846 Stock Forecast page.

Mingfa Group Nears Completion of PRC Subsidiary Board Restructuring

Mingfa Group (International) Company Limited has reported further progress in its long-running effort to restructure the boards of directors across its mainland Chinese subsidiaries, with only two remaining PRC entities still awaiting local regulatory approval for director changes. The company indicated that completion of the board-level restructuring at the subsidiary level will occur once those approvals are issued and has committed to continue providing monthly updates on material developments, underscoring both the regulatory complexity of its mainland operations and the importance of formal governance alignment across the group for shareholders and other stakeholders.

The most recent analyst rating on (HK:0846) stock is a Hold with a HK$0.12 price target. To see the full list of analyst forecasts on Mingfa Group (International) Co. Ltd. stock, see the HK:0846 Stock Forecast page.

Mingfa Group Updates on PRC Subsidiary Board Restructuring

Mingfa Group (International) Company Limited has announced a progress update on the restructuring of the boards of directors for 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 upon receiving these approvals, and the company will continue to provide monthly updates on the progress.

The most recent analyst rating on (HK:0846) stock is a Hold with a HK$0.10 price target. To see the full list of analyst forecasts on Mingfa Group (International) Co. Ltd. stock, see the HK:0846 Stock Forecast page.

Mingfa Group Updates on PRC Subsidiary Board Restructuring

Mingfa Group (International) Co. Ltd. announced a progress update on the restructuring of the boards of directors for 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 completed once these approvals are issued, and the company will continue to provide monthly updates on the progress.