CNQC International Holdings Limited (1240) AI Stock Analysis

• Market Cap: HK$320.42M
• Dividend Yield: N/A
• Average Volume (3M): 372.75K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.21
• Revenue Growth: -14.93%
• EPS Growth: N/A
• Country: HK
• Employees: 2,916
• Sector: Industrials
• Sector Strength: 72
• Industry: Real Estate - Diversified
• EPS (TTM): 0.02
• Shares Outstanding: 1,518,320,000
• 10 Day Avg. Volume: 34,000
• 30 Day Avg. Volume: 372,750
• PEG Ratio: -0.07
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.03
• 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: 52 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score reflects significant financial challenges, including volatile revenue and rising leverage, which weigh heavily on the company's outlook. While technical analysis shows some short-term strength, the lack of dividend yield and mixed valuation metrics suggest caution. The absence of earnings call data and corporate events limits further insights.

CNQC International Holdings Limited Business Overview & Revenue Model

Company Description

CNQC International Holdings Limited (1240) is a diversified construction and property development company based in Hong Kong. The company operates primarily in the construction and real estate sectors, focusing on providing integrated construction services, property investment, and project management. CNQC engages in various activities including residential, commercial, and infrastructure projects, catering to both public and private sector clients.

How the Company Makes Money

CNQC International Holdings Limited generates revenue primarily through its construction projects, which include contracts for building residential and commercial properties as well as infrastructure developments. The company earns money by bidding for and securing construction contracts, where it charges clients for project management, labor, materials, and overhead costs. A significant portion of its revenue also comes from property sales and leasing, particularly from its developed residential and commercial properties. Additionally, CNQC benefits from strategic partnerships with government entities and private developers, allowing it to access a broader range of projects and clients. The company may also generate income through joint ventures and collaborations in large-scale developments, further enhancing its revenue streams.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.42B	9.90B	10.42B	8.27B	6.10B	5.13B
Gross Profit	550.33M	529.95M	266.14M	-40.35M	177.59M	234.94M
EBITDA	341.64M	319.37M	81.48M	-114.05M	182.53M	320.47M
Net Income	51.67M	45.58M	-490.33M	-587.98M	259.05M	218.06M
Balance Sheet
Total Assets	9.05B	9.09B	11.12B	12.18B	11.97B	12.83B
Cash, Cash Equivalents and Short-Term Investments	814.40M	1.17B	1.62B	1.47B	989.68M	1.22B
Total Debt	3.23B	3.29B	5.12B	6.19B	5.77B	6.46B
Total Liabilities	6.09B	6.30B	8.29B	9.01B	8.25B	9.24B
Stockholders Equity	2.54B	2.34B	2.38B	2.85B	3.53B	3.40B
Cash Flow
Free Cash Flow	1.54B	1.59B	-159.49M	-261.00M	261.06M	1.21B
Operating Cash Flow	1.57B	1.65B	-121.08M	-234.25M	361.69M	1.26B
Investing Cash Flow	-369.37M	-572.71M	1.10B	322.80M	-297.72M	-442.52M
Financing Cash Flow	-1.00B	-1.54B	-881.94M	496.30M	-187.05M	-862.92M

CNQC International Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.19
• 50DMA: Negative
• 100DMA: Positive
• 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 Negative. The current price of 0.19 is below the 20-day moving average (MA) of 0.19, below the 50-day MA of 0.20, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.53 is Neutral, neither overbought nor oversold. The STOCH value of 84.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0672	―	HK$772.11M	33.41	0.21%	―	-43.28%	-93.81%
1240	―	HK$320.42M	6.15	2.10%	―	-14.93%	―
0978	―	€1.42B	-0.75	-20.96%	4.14%	-16.06%	-529.92%
1427	―	HK$219.48M	―	-19.00%	―	-21.32%	-715.30%
2349	―	HK$197.08M	―	-12.31%	―	-0.09%	37.33%
0120	―	HK$153.78M	―	-39.83%	―	-75.15%	23.12%

CNQC International Holdings Limited Corporate Events

CNQC International Holdings Sees Improved Profit Despite Revenue Drop

CNQC International Holdings Limited reported its unaudited condensed consolidated interim results for the six months ending June 30, 2025. The company experienced a decrease in revenue compared to the same period in 2024, with revenue dropping from HK$4,883,569,000 to HK$4,404,110,000. Despite this, the company saw an increase in gross profit and a significant improvement in total comprehensive income, which rose to HK$225,076,000 from HK$7,567,000 in the previous year. This improvement is attributed to favorable exchange differences from the translation of foreign operations. The interim results indicate a positive impact on the company’s financial health, suggesting potential resilience in the face of revenue challenges.

CNQC International Faces Board Diversity Challenge After Director’s Resignation

CNQC International Holdings Limited has announced the resignation of Ms. Liu Juan as an independent non-executive director, effective August 28, 2025, due to her personal and business commitments. Her departure results in the company having a single-gender board, which does not comply with the Hong Kong Stock Exchange’s diversity requirements. The company plans to appoint a suitable female director within three months to rectify this non-compliance.

CNQC International Holdings Schedules Board Meeting for Interim Results

CNQC International Holdings Limited has announced a board meeting scheduled for August 29, 2025, to approve the unaudited interim results for the first half of the year and consider an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential shareholder returns, impacting its market position and stakeholder interests.