Zhuguang Holdings Group Co., Ltd. (1176) AI Stock Analysis

• Market Cap: HK$504.49M
• Dividend Yield: N/A
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.51
• Revenue Growth: 27.88%
• EPS Growth: -56.97%
• Country: HK
• Employees: 642
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): -0.03
• Shares Outstanding: 8,850,633,000
• 10 Day Avg. Volume: 1,285,000
• 30 Day Avg. Volume: 1,215,466
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 0.00
• 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

• Rating: 40 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues, substantial losses, and high leverage. Technical analysis also indicates a bearish trend, with the stock trading below key moving averages. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, further impacting the score.

Zhuguang Holdings Group Co., Ltd. Business Overview & Revenue Model

Company Description

Zhuguang Holdings Group Company Limited, an investment holding company, engages in the development, investment, management, sale, and rental of properties in the People's Republic of China. It operates through three segments: Property Development, Project Management Services, and Property Investment. The company develops and sells properties, as well as operates hotels. It also provides project management services to property development and urban redevelopment projects; and invests in properties. The company was incorporated in 1996 and is based in Central, Hong Kong. Zhuguang Holdings Group Company Limited is a subsidiary of Rong De Investment Limited.

How the Company Makes Money

Zhuguang Holdings generates revenue primarily through the sale and leasing of residential and commercial properties. The company's revenue model is centered on property development, where it acquires land, develops real estate projects, and subsequently sells or leases these properties to consumers and businesses. Key revenue streams include direct sales of completed units, rental income from commercial properties, and property management services. Additionally, partnerships with local governments and other developers can enhance its project pipeline and facilitate access to prime land for development, contributing to its earnings. The company may also engage in financial activities related to real estate, such as securing loans and investments, further diversifying its income sources.

Zhuguang Holdings Group Co., Ltd. Financial Statement Overview

Summary

Zhuguang Holdings Group Co., Ltd. is facing significant financial challenges. The company is experiencing declining revenues and substantial losses, as reflected in negative profit margins. High leverage and negative return on equity indicate financial instability. Cash flow issues further exacerbate the situation, with declining free cash flow and inadequate cash flow coverage of net income. The company needs to address these issues to improve its financial health.

Income Statement

The company has experienced a significant decline in revenue with a negative growth rate of -13.46% in the latest year. Gross profit margin remains relatively high at 76.55%, but the net profit margin is deeply negative at -216.50%, indicating substantial losses. EBIT and EBITDA margins are also negative, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio is extremely high at 7.50, indicating heavy reliance on debt financing, which poses a risk. Return on equity is negative, showing that the company is not generating profits for shareholders. The equity ratio is low, suggesting limited equity buffer against liabilities.

Cash Flow

Free cash flow has decreased by 32.34%, indicating cash flow challenges. The operating cash flow to net income ratio is zero, suggesting that operating cash flow is not supporting net income. The free cash flow to net income ratio is also zero, highlighting cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.33B	1.59B	2.30B	2.84B	2.99B	6.62B
Gross Profit	1.69B	1.23B	1.45B	2.04B	2.37B	3.31B
EBITDA	-1.34B	-2.24B	274.66M	1.40B	1.64B	2.34B
Net Income	-2.83B	-3.48B	-871.01M	-997.19M	21.27M	2.24B
Balance Sheet
Total Assets	33.20B	32.78B	35.88B	37.12B	42.90B	36.93B
Cash, Cash Equivalents and Short-Term Investments	41.89M	42.78M	314.51M	773.01M	3.97B	3.53B
Total Debt	14.48B	15.20B	13.85B	16.81B	20.73B	17.95B
Total Liabilities	30.13B	30.78B	29.34B	30.89B	35.03B	28.42B
Stockholders Equity	3.13B	2.03B	5.09B	7.25B	7.73B	8.41B
Cash Flow
Free Cash Flow	600.66M	620.50M	1.87B	863.54M	-241.71M	-2.77B
Operating Cash Flow	601.59M	620.78M	1.87B	864.73M	177.17M	-2.76B
Investing Cash Flow	115.71M	273.33M	372.19M	1.91B	2.36B	4.79B
Financing Cash Flow	-653.95M	-894.61M	-2.36B	-2.58B	-2.78B	-1.98B

Zhuguang Holdings Group Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1176, the sentiment is Negative. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1176.

Zhuguang Holdings Group Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0496	―	HK$752.98M	9.53	1.50%	―	10.78%	-12.42%
1243	―	HK$562.40M	―	-24.64%	―	321.15%	-33.40%
0846	―	HK$737.31M	―	-12.55%	―	-25.51%	-158.20%
1628	―	HK$220.89M	>-0.01	―	―	-62.71%	-16.95%
1176	―	HK$504.49M	―	-94.81%	―	27.88%	-56.97%

Zhuguang Holdings Group Co., Ltd. Corporate Events

Zhuguang Holdings Implements Financial Measures to Address Liquidity Challenges

Zhuguang Holdings Group Co., Ltd. has implemented several measures to address liquidity pressures and improve its financial position following a disclaimer of opinion in its 2024 Annual Report. The company has secured support from its controlling shareholder, Rong De, and is actively engaging with lenders to refinance existing borrowings and secure additional credit facilities. Additionally, Zhuguang has collected significant funds from urban redevelopment projects and is implementing cost reduction measures, including workforce streamlining, to strengthen its financial standing.

Zhuguang Holdings Reports Improved Interim Results Amid Market Challenges

Zhuguang Holdings Group Co., Ltd. reported its interim results for the first half of 2025, showing a significant improvement in its financial performance compared to the previous year. The company’s revenue from property development surged, while losses narrowed considerably. Despite global economic challenges, the company benefited from supportive Chinese government policies aimed at stabilizing the real estate market. Zhuguang Holdings continues to focus on urban renewal projects and strategic collaborations to strengthen its market position as an ‘urban renewal expert.’

Zhuguang Holdings Schedules Board Meeting for Interim Results

Zhuguang Holdings Group Co., Ltd. has announced a board meeting scheduled for August 29, 2025, to approve and publish the interim results for the first half of 2025 and consider an interim dividend. The meeting will assess the company’s financial performance and potential dividend distribution, impacting its stakeholders and market positioning.

Zhuguang Holdings Announces New Hong Kong Office Location

Zhuguang Holdings Group Co., Ltd. announced a change in its principal place of business in Hong Kong, effective from August 1, 2025. The new address will be Room 8106B, Level 81, International Commerce Centre, 1 Austin Road West, Kowloon, Hong Kong. This relocation is part of the company’s strategic decisions, although contact details such as telephone, facsimile numbers, email, and website remain unchanged.