CNQC International Holdings Limited (1240) AI Stock Analysis

• Market Cap: HK$262.91M
• Dividend Yield: N/A
• Average Volume (3M): 170.17K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.30
• Revenue Growth: -4.98%
• EPS Growth: N/A
• Country: HK
• Employees: 2,916
• Sector: Real Estate
• Sector Strength: 66
• Industry: Real Estate - Diversified
• EPS (TTM): 0.03
• Shares Outstanding: 1,518,320,000
• 10 Day Avg. Volume: 284,000
• 30 Day Avg. Volume: 170,166
• PEG Ratio: 0.05
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.74
• 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: 48 Neutral
• Price Target: ―

The overall stock score of 48 indicates a cautious outlook for CNQC International Holdings Limited. The company's financial performance is hindered by volatile revenue and rising leverage, impacting its stability. Technical analysis suggests bearish trends, though the low RSI could signal a potential reversal. The stock's low P/E ratio suggests undervaluation, but the absence of a dividend and financial instability are significant risks.

CNQC International Holdings Limited Business Overview & Revenue Model

Company Description

CNQC International Holdings Limited, an investment holding company, operates as a property developer and contractor. It operates through four segments: Foundation and construction-Hong Kong and Macau; Property development-Hong Kong; Construction-Singapore and Southeast Asia; and Property development-Singapore and Southeast Asia. The company primarily engages in the development and sale of condominiums; general contracting, building, and civil engineering; and modular integrated construction, as well as invest in property development. It also undertakes foundation works; and provides ancillary services with specialization in piling works, as well as superstructure construction services in Hong Kong and Macau. In addition, the company undertakes construction projects in Singapore and other Southeast Asia, Hong Kong, and Macau. Further, it is involved in the rental of machinery and construction equipment. The company is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

CNQC International Holdings Limited generates revenue through its construction and property development activities. The company earns money by undertaking construction contracts for both residential and commercial projects, which include new builds, renovations, and engineering works. Additionally, revenue is generated from the sale and leasing of developed properties, which encompasses a wide range of residential units, office spaces, and retail properties. Strategic partnerships and joint ventures with other developers and construction firms also contribute to its profitability by expanding its project portfolio and market reach.

CNQC International Holdings Limited Financial Statement Overview

Summary

CNQC International Holdings Limited faces several financial challenges, including volatile revenue growth, inconsistent profitability, and rising leverage. The company's financial stability is strained by fluctuating cash flows and declining equity. While there are periods of profitability, the overall financial health suggests caution due to the significant risks associated with leverage and liquidity constraints.

Income Statement

The company's revenue has fluctuated significantly over the past few years, with a noticeable decline in 2023 compared to 2022. Gross profit margins have been inconsistent, reflecting challenges in cost management. Despite a positive net income in 2024, previous years have shown substantial losses, suggesting volatility in profitability. Overall, the income statement indicates issues with maintaining stable revenue growth and profitability.

Balance Sheet

The balance sheet shows a moderate level of debt relative to equity, with a debt-to-equity ratio increasing over the years, indicating rising leverage. The equity ratio suggests a reasonable level of equity financing, but the declining stockholders' equity over recent years could indicate potential financial instability. Liquidity appears constrained, as reflected by the decreasing cash reserves and high total liabilities.

Cash Flow

The cash flow statement shows inconsistent operating cash flows, with negative free cash flows in several years, indicating difficulties in generating cash from operations. The absence of free cash flow growth and negative operating cash flows in recent years suggest liquidity challenges. The cash flow to net income ratios highlight potential issues in converting profits into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
9.90B	10.42B	8.27B	6.10B	5.13B
	Gross Profit
529.95M	266.14M	-40.35M	177.59M	234.94M
	EBIT
305.65M	-85.32M	-364.69M	-251.42M	-90.00M
	EBITDA
319.37M	81.48M	-114.05M	182.53M	320.47M
	Net Income Common Stockholders
45.58M	-490.33M	-587.98M	259.05M	218.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.17B	1.62B	1.47B	820.68M	1.11B
	Total Assets
9.09B	11.12B	12.18B	11.97B	12.83B
	Total Debt
3.29B	5.12B	6.19B	5.77B	6.46B
	Net Debt
2.16B	3.52B	5.13B	4.95B	5.34B
	Total Liabilities
6.30B	8.29B	9.01B	8.25B	9.24B
	Stockholders Equity
2.34B	2.38B	2.85B	3.53B	3.40B
Cash Flow		Free Cash Flow
0.00	-159.49M	-261.00M	261.06M	1.21B
	Operating Cash Flow
1.78B	-121.08M	-234.25M	361.69M	1.26B
	Investing Cash Flow
0.00	1.10B	360.22M	-297.72M	-439.87M
	Financing Cash Flow
-1.54B	-881.94M	251.02M	-327.32M	-912.73M

CNQC International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1240, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.16, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.37 is Neutral, neither overbought nor oversold. The STOCH value of 84.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1240.

CNQC International Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$2.84B	10.78	0.41%	6.09%	6.01%	-21.16%
1240	48 Neutral	HK$262.91M	5.78	1.93%	―	-4.98%	―
TNY1		€119.23M	―	-20.46%	9.46%	―	―
0120	48 Neutral	HK$171.89M	―	-48.52%	―	532.42%	-37.56%
35Z		€68.49M	37.50	0.19%	―	―	―
2349	45 Neutral	HK$172.06M	―	-10.46%	―	-7.60%	41.01%
1427	39 Underperform	HK$165.93M	―	-17.73%	―	-25.98%	-1588.59%

CNQC International Holdings Limited Corporate Events

CNQC International Holdings Reports Profit Turnaround in 2024

CNQC International Holdings Limited reported its consolidated financial results for the year ending December 31, 2024, showing a significant turnaround with a profit of HK$43.39 million compared to a loss of HK$371.25 million in the previous year. The company experienced a substantial increase in gross profit and operating profit, despite a decrease in revenue, indicating improved cost management and operational efficiency. However, the total comprehensive expense for the year was HK$44.08 million, reflecting exchange differences and reclassification of reserves, which may impact stakeholders’ perceptions of the company’s financial health.

CNQC International Holdings Announces Upcoming Board Meeting

CNQC International Holdings Limited, a company incorporated in the Cayman Islands, has announced a board meeting scheduled for March 31, 2025, in Hong Kong. The meeting will address the approval of the company’s audited financial results for the year ending December 31, 2024, and consider the recommendation for a final dividend payment.