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

• Market Cap: HK$694.65M
• Dividend Yield: N/A
• Average Volume (3M): 174.53K
• 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: 159,500
• 30 Day Avg. Volume: 174,533
• 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: 41 Neutral
• Price Target: HK$0.10 ▼(-26.43% Downside)

Mingfa Group's overall stock score is primarily impacted by its poor financial performance and weak technical indicators. The company's negative profitability and declining revenue are major concerns. Technical analysis shows bearish momentum, with the stock trading below key moving averages. Valuation is unattractive due to a negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Improvements

Improved cash flow indicates better operational efficiency, enhancing the company's ability to fund projects and reduce reliance on external financing.

Stable Leverage

Low leverage provides financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Diverse Revenue Streams

Diversified revenue sources from property sales and management services reduce risk and provide steady income, supporting long-term business sustainability.

Negative Factors

Declining Revenue

Significant revenue decline indicates market challenges and potential loss of competitive position, impacting long-term growth prospects.

Negative Profitability

Sustained negative profitability reflects operational inefficiencies and challenges in cost management, threatening financial health and investor confidence.

Declining Equity

Decreasing equity suggests erosion of shareholder value and potential difficulties in raising capital, limiting future growth and investment capacity.

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

Company Description

Mingfa Group (International) Co. Ltd. is a prominent investment holding company based in Hong Kong, primarily engaged in real estate development and investment, as well as the manufacturing of construction materials. The company operates across various sectors, including property development, property management, and construction, offering a diverse portfolio of residential, commercial, and industrial properties. Mingfa Group is known for its commitment to quality and sustainability in its projects, contributing significantly to urban development in the regions it operates.

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: Negative
• Last Price: 0.14
• 50DMA: Negative
• 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 Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.11, above the 50-day MA of 0.13, and above the 200-day MA of 0.13, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 38.43 is Neutral, neither overbought nor oversold. The STOCH value of 36.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$771.35M	9.77	1.50%	―	10.78%	-12.42%
1243	51 Neutral	HK$562.40M	-0.58	-38.17%	―	213.63%	-61.18%
3688	46 Neutral	HK$572.16M	―	-29.51%	―	53.69%	-33.81%
0846	41 Neutral	HK$694.65M	―	-12.55%	―	-25.51%	-158.20%
1176	40 Underperform	HK$513.34M	―	-94.81%	―	27.88%	-56.97%
1628	38 Underperform	HK$220.89M	>-0.01	―	―	-62.71%	-16.95%

Mingfa Group (International) Co. Ltd. Corporate Events

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.

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.