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): 1.10
• 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: 44 Neutral
• Price Target: HK$0.12 ▼(-17.14% Downside)

The overall score is primarily driven by significant financial challenges, including declining revenue and profitability, which weigh heavily on the stock's outlook. Technical analysis provides mixed signals, with some potential for bullish momentum. Valuation concerns, highlighted by a negative P/E ratio and lack of dividend yield, further impact the score.

Positive Factors

Cash Flow Improvements

Improved free cash flow indicates better cash generation, which can enhance financial flexibility and support long-term investments.

Stable Leverage

Low leverage provides stability and reduces financial risk, allowing the company to withstand economic fluctuations better.

Efficient Cash Generation

Efficient cash generation despite net losses suggests operational resilience and the ability to sustain operations without excessive borrowing.

Negative Factors

Declining Revenue

A significant drop in revenue indicates potential market challenges and could impact the company's ability to fund growth initiatives.

Negative Profitability

Sustained negative profitability undermines financial health, limiting reinvestment capabilities and shareholder returns.

Declining Equity

Decreasing equity suggests weakening financial foundation, potentially restricting future growth and investment opportunities.

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

Mingfa Group faces significant financial challenges with a sharp decline in revenue and profitability, raising concerns about operational efficiency and market competitiveness. The balance sheet is stable with low leverage, but declining equity and negative returns are problematic. Cash flow improvements are a positive note, yet reliance on external financing is a potential 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	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 57.41 is Neutral, neither overbought nor oversold. The STOCH value of 76.67 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	64 Neutral	HK$789.71M	10.00	1.50%	―	10.78%	-12.42%
1243	51 Neutral	HK$547.20M	-0.38	-38.17%	―	213.63%	-61.18%
3688	46 Neutral	HK$508.58M	-0.27	-29.51%	―	53.69%	-33.81%
0846	44 Neutral	HK$712.93M	-0.32	-12.55%	―	-25.51%	-158.20%
1176	40 Underperform	HK$415.98M	-0.13	-94.81%	―	27.88%	-56.97%
1628	38 Underperform	HK$184.08M	>-0.01	―	―	-62.71%	-16.95%

Mingfa Group (International) Co. Ltd. Corporate Events

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.

Mingfa Group Reports 23.1% Drop in Contracted Sales for 2025

Mingfa Group (International) Co. Ltd. reported unaudited contracted sales of approximately RMB1.93 billion for the nine months ending September 30, 2025, marking a 23.1% decrease from the same period in 2024. This decline in sales could impact the company’s market positioning and stakeholder interests as it reflects a significant drop in performance across multiple regions in China.

Mingfa Group Appoints New Executive and Non-Executive Directors

Mingfa Group (International) Co. Ltd. announced the appointment of Mr. Huang Zhibin as an executive director and Ms. Chen Bihua as a non-executive director, effective from October 9, 2025. Mr. Huang, with extensive experience in capital operations and real estate management, is expected to strengthen the company’s competitive position in the local market, while Ms. Chen holds a significant shareholding in the company.

Mingfa Group Announces Board Restructuring and New Committees

Mingfa Group (International) Co. Ltd. has announced changes to its board of directors, effective October 9, 2025. The company has appointed new executive, non-executive, and independent non-executive directors, along with the establishment of several committees, including audit, nomination, remuneration, and risk management committees. These changes are likely to impact the company’s governance and strategic direction, potentially influencing its market positioning and stakeholder relationships.

Mingfa Group Advances Restructuring of PRC Subsidiaries’ Boards

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 aims to enhance governance at the subsidiary level and will be completed once approvals are granted. The company plans to provide monthly updates on the restructuring process.