Zhong Hua International Holdings Limited (1064) AI Stock Analysis

• Market Cap: HK$49.96M
• Dividend Yield: N/A
• Average Volume (3M): 44.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: 5.42%
• EPS Growth: 94.64%
• Country: HK
• Employees: 23
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 0.01
• Shares Outstanding: 768,616,500
• 10 Day Avg. Volume: 30,700
• 30 Day Avg. Volume: 44,033
• 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 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: 45 Neutral
• 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 Business Overview & Revenue Model

Company Description

Zhong 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 Money

Zhong 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

Zhong Hua International Holdings Limited is facing financial challenges, evidenced by declining revenues, persistent net losses impacting profitability, and weakening cash flow. While the company is not leveraged, which is a positive aspect, declining equity and negative return on equity signal potential risks to financial health. Strategic financial improvements are needed to stabilize and enhance performance.

Income Statement

The company has experienced declining revenue growth, with total revenue decreasing from 2021 to 2024. Despite maintaining a positive gross profit margin of 100% in recent years, the net profit margin is negative due to significant net losses, indicating profitability challenges. The EBIT margin has also deteriorated over the years, showing operational inefficiencies.

Balance Sheet

The company has no debt, reflected in a favorable debt-to-equity ratio of 0, which indicates low leverage risk. However, the equity ratio has declined over the years, indicating reduced financial stability. Return on equity is negative in recent years due to net losses, presenting a risk to shareholder returns.

Cash Flow

The company's operating cash flow was positive in prior years, but it turned zero by 2024, indicating potential liquidity issues. Free cash flow also diminished, which could impact future investment capacity. With no recent free cash flow growth and operating cash flow to net income ratio turned unfavorable due to negative net income, the cash flow position appears weak.

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

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 0.07, below the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 25.75 is Positive, neither overbought nor oversold. The STOCH value of 31.82 is Neutral, 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

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%
0485	46 Neutral	HK$114.68M	-4.45	-13.49%	―	-17.67%	-9.41%
1064	45 Neutral	HK$49.96M	-1.90	-7.55%	―	5.42%	94.64%
2608	39 Underperform	HK$28.06M	>-0.01	―	―	-31.35%	-41.47%
1246	29 Underperform	HK$28.52M	―	―	―	―	―