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Zhong Hua International Holdings Limited (HK:1064)
:1064
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Zhong Hua International Holdings Limited
(1064)
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Rating:45Neutral
Price Target:
HK$0.07
▼(-2.86% Downside)
The score is driven primarily by weak profitability and a sharp 2024 cash flow reversal, which outweigh the benefit of a low-debt balance sheet. Technicals are neutral-to-soft with negative MACD and the price below key moving averages, and valuation is limited by negative earnings and no dividend support.
Positive Factors
Low Debt Levels
A zero-debt balance sheet reduces refinancing risk and provides financial flexibility, which is crucial for navigating economic uncertainties.
Revenue Growth
Positive revenue growth indicates potential market expansion and product demand, supporting long-term business sustainability.
Improved Operating Profit
Improvement in operating profit suggests better cost management and operational efficiency, which can enhance future profitability.
Negative Factors
Negative Cash Flow
Negative cash flow raises concerns about the company's ability to fund operations and invest in growth without external financing.
Large Losses
Sustained large losses indicate challenges in achieving profitability, which can hinder long-term financial health and investor confidence.
Contracting Equity
A contracting equity base can limit the company's ability to absorb losses and invest in future growth, impacting financial resilience.
Zhong Hua International Holdings Limited (1064) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$46.89M
Dividend YieldN/A
Average Volume (3M)44.03K
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth5.42%
EPS Growth94.64%
CountryHK
Employees23
SectorReal Estate
Sector Strength53
IndustryReal Estate - Development
Share Statistics
EPS (TTM)0.01
Shares Outstanding768,616,500
10 Day Avg. Volume30,700
30 Day Avg. Volume44,033
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.11
Price to Sales (P/S)1.19
P/FCF Ratio-2.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Zhong Hua International Holdings Limited Business Overview & Revenue Model
Company DescriptionZhong Hua International Holdings Limited (1064) is a Hong Kong-based investment holding company primarily engaged in property development and investment. The company operates within the real estate sector, focusing on the acquisition, development, and management of residential, commercial, and industrial properties in Hong Kong and Mainland China. Zhong Hua International Holdings Limited aims to capitalize on the growing demand for real estate in these regions by delivering high-quality properties and investment opportunities.
How the Company Makes MoneyZhong Hua International Holdings Limited generates revenue primarily through the sale and leasing of properties. The company invests in the development of residential, commercial, and industrial properties, which are subsequently sold or rented out to generate income. Key revenue streams include property sales, rental income, and property management fees. The company may also engage in strategic partnerships and joint ventures with other developers and investors to enhance its property portfolio and maximize returns. Additionally, fluctuations in property market conditions, government regulations, and economic factors in Hong Kong and Mainland China can significantly impact the company's earnings.
Zhong Hua International Holdings Limited Financial Statement Overview
Summary
Financials are weak overall: income statement performance shows volatile revenue and large losses in 2023–2024, and cash flow deteriorated to negative operating/free cash flow in 2024. The main offset is a conservatively levered balance sheet with zero debt in 2023–2024, but contracting equity and negative ROE remain key risks.Income Statement
Revenue has been volatile (sharp decline from 2021 to 2022, roughly flat in 2023–2024 with a modest rebound in 2024). Profitability is the key issue: the company swung from small profits in 2021–2022 to very large losses in 2023, and remained loss-making in 2024. While operating profit improved materially in 2024 versus 2023, the business is still not consistently profitable and reported margins have been highly unstable.28
Negative
Balance Sheet
Leverage appears low, with total debt at zero in 2023–2024 and a debt-to-equity ratio near zero, which reduces refinancing risk. However, the equity base has contracted meaningfully (down from 2021–2022 levels), and returns on equity are negative in 2023–2024 due to losses. Overall, the balance sheet is conservatively levered, but the downward equity trend and weak returns are notable risks.72
Positive
Cash Flow
Cash generation is inconsistent: operating and free cash flow were positive in 2019–2023 but turned negative in 2024, with a steep deterioration versus the prior year. Cash flow quality also weakens in 2024 as cash outflows coincide with continued net losses. The prior history of positive free cash flow is a support, but the latest-year reversal raises concerns about near-term funding needs and sustainability.34
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 29.76M | 28.52M | 28.36M | 30.28M | 57.67M | 24.42M |
| Gross Profit | 29.76M | 28.52M | 28.36M | 31.07M | 52.83M | 25.07M |
| EBITDA | 4.19M | 1.61M | -1.74B | 7.35M | 29.30M | 1.35M |
| Net Income | -26.39M | -46.13M | -482.14M | 3.27M | 6.81M | -6.58M |
Balance Sheet | ||||||
| Total Assets | 1.45B | 1.40B | 1.50B | 4.42B | 4.74B | 4.56B |
| Cash, Cash Equivalents and Short-Term Investments | 63.56M | 63.57M | 90.76M | 84.87M | 93.20M | 86.41M |
| Total Debt | 0.00 | 0.00 | 0.00 | 72.30M | 79.36M | 79.32M |
| Total Liabilities | 427.43M | 425.38M | 433.51M | 1.40B | 1.51B | 1.45B |
| Stockholders Equity | 339.47M | 320.42M | 375.81M | 873.97M | 937.17M | 905.97M |
Cash Flow | ||||||
| Free Cash Flow | -6.28M | -15.97M | 23.79M | 26.46M | 22.44M | 18.78M |
| Operating Cash Flow | -6.28M | -15.97M | 24.26M | 26.46M | 22.44M | 18.78M |
| Investing Cash Flow | 0.00 | 0.00 | -575.00K | 0.00 | 0.00 | 0.00 |
| Financing Cash Flow | -10.70M | -8.46M | -15.63M | -28.54M | -17.64M | -14.23M |
Zhong Hua International Holdings Limited Technical Analysis
Negative
0.07
Price Trends
0.07
Negative
0.07
Negative
0.06
Negative
Market Momentum
>-0.01
Negative
25.75
Positive
15.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1064, the sentiment is Negative. The current price of 0.07 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 25.75 is Positive, neither overbought nor oversold. The STOCH value of 15.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1064.
Zhong Hua International Holdings Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
46 Neutral | HK$109.58M | -4.25 | -13.49% | ― | -17.67% | -9.41% | |
45 Neutral | HK$46.89M | -1.75 | -7.55% | ― | 5.42% | 94.64% | |
39 Underperform | HK$28.06M | >-0.01 | ― | ― | -31.35% | -41.47% | |
29 Underperform | HK$28.52M | -0.03 | ― | ― | ― | ― |
* Real Estate Sector Average
HK:1064
Zhong Hua International Holdings Limited
0.06
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39.53%
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China Sinostar Group Company Limited
0.43
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190.54%
HK:1246
Boill Healthcare Holdings Limited
0.02
0.00
0.00%
HK:2608
Sunshine 100 China Holdings Ltd.
0.01
>-0.01
-45.00%
HK:6611
Sanxun Holdings Group Limited
0.05
-0.01
-23.33%
HK:6900
Sunkwan Properties Group Limited
0.01
0.00
0.00%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.