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

• Market Cap: HK$513.34M
• Dividend Yield: N/A
• Average Volume (3M): 983.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.37
• 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: 865,200
• 30 Day Avg. Volume: 983,133
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.43
• P/FCF Ratio: 1.10
• 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: 40 Underperform
• Price Target: HK$0.06 ▼(-3.33% 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.

Positive Factors

Revenue Model

Zhuguang Holdings' revenue model, focused on property sales and leasing, provides a stable income stream, benefiting from urbanization trends.

Gross Profit Margin

A high gross profit margin indicates efficient cost management in property development, supporting long-term profitability despite other challenges.

Urban Development Focus

Concentration on urban development positions Zhuguang Holdings to capitalize on China's urbanization, driving demand for residential and commercial properties.

Negative Factors

High Leverage

High leverage increases financial risk, potentially limiting the company's ability to invest in new projects and impacting long-term sustainability.

Negative Profit Margins

Substantial losses reflected in negative profit margins indicate operational inefficiencies, threatening the company's financial health and growth prospects.

Cash Flow Challenges

Declining free cash flow suggests liquidity issues, hindering the company's ability to fund operations and invest in growth opportunities.

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: Neutral
• Last Price: 0.06
• 50DMA: Positive
• 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 Neutral. The current price of 0.06 is above the 20-day moving average (MA) of 0.06, above 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 54.93 is Neutral, neither overbought nor oversold. The STOCH value of 128.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
0496	64 Neutral	HK$826.44M	10.35	1.50%	―	10.78%	-12.42%
1243	51 Neutral	HK$501.60M	-0.34	-38.17%	―	213.63%	-61.18%
0846	44 Neutral	HK$639.81M	-0.31	-12.55%	―	-25.51%	-158.20%
1176	40 Underperform	HK$513.34M	-0.16	-94.81%	―	27.88%	-56.97%
1628	38 Underperform	HK$167.88M	>-0.01	―	―	-62.71%	-16.95%

Zhuguang Holdings Group Co., Ltd. Corporate Events

Zhuguang Holdings Announces Disposal of Equity Interest in Silver Grant

Zhuguang Holdings Group Co., Ltd. announced the disposal of a 29.50% equity interest in Silver Grant International Holdings Group Limited for HK$81,586,802.64. This transaction, which will be settled by offsetting against a loan, will result in Zhuguang Holdings ceasing to have any equity interest in the target company. The disposal is classified as a discloseable and connected transaction under the Hong Kong Listing Rules, requiring independent shareholder approval. The transaction involves key company executives who have abstained from voting due to their interests, and an independent board committee has been formed to advise shareholders.

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.