Jujiang Construction Group Co., Ltd. Class H (1459) AI Stock Analysis

• Market Cap: HK$132.81M
• Dividend Yield: 7.69%
• Average Volume (3M): 251.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -33.92%
• EPS Growth: -94.74%
• Country: HK
• Employees: 944
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 133,360,000
• 10 Day Avg. Volume: 286,200
• 30 Day Avg. Volume: 251,400
• PEG Ratio: -0.64
• Price to Book (P/B): 0.10
• Price to Sales (P/S): 0.02
• P/FCF Ratio: 3.78
• 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: 49 Neutral
• Price Target: HK$0.50 ▲(108.33% Upside)

The overall stock score of 49 reflects significant financial challenges, including declining revenue and profitability, as well as inconsistent cash flows. Technical indicators show a bearish trend, but the oversold RSI suggests potential for a rebound. The valuation is mixed, with a negative P/E ratio but a high dividend yield offering some appeal. Strategic improvements are necessary to enhance financial health and investor confidence.

Positive Factors

Strategic Partnerships

Strategic partnerships with key industry players enhance Jujiang's market position and provide a steady revenue stream, supporting long-term growth.

Reputation and Experience

Jujiang's strong reputation and industry experience help secure large projects, ensuring a continuous flow of contracts and revenue stability.

Balanced Leverage

Stable debt levels indicate prudent financial management, providing a buffer against economic fluctuations and supporting long-term financial health.

Negative Factors

Declining Revenue

Consistent revenue decline reflects challenges in market demand or competitive positioning, potentially impacting long-term growth prospects.

Cash Flow Challenges

Fluctuating cash flow raises concerns about the company's ability to sustain operations and invest in growth, affecting financial stability.

Profitability Pressure

Decreasing profit margins suggest cost management issues, which could erode profitability and hinder the company's competitive edge over time.

Jujiang Construction Group Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Jujiang Construction Group Co., Ltd. provides construction contracting services for residential, commercial, industrial, and public works in the Mainland China. It operates through two segments, Construction Contracting and Others. It offers designing, surveying, and consulting services relating to architecture construction contracting; and sells construction materials The company is also involved in the installation, disassembly, and rental of construction lifting equipment; installation of architecture walls; and manufacture and sale of civil defense products. In addition, it engages in the construction and operation of youth quality education practice base. The company was formerly known as Qitang Commune Construction Agency and changed its name to Jujiang Construction Group Co., Ltd. in December 2014. Jujiang Construction Group Co., Ltd. was founded in 1965 and is headquartered in Tongxiang, the People's Republic of China. Jujiang Construction Group Co., Ltd. is a subsidiary of Zhejiang Jujiang Holdings Group Co., Ltd.

How the Company Makes Money

Jujiang Construction Group Co., Ltd. generates revenue through several key streams. The primary source of income is derived from contracts in construction services, which include building residential complexes, commercial properties, and infrastructure projects such as roads and bridges. The company often enters into long-term contracts with government entities and private corporations, providing a steady flow of income. Additionally, Jujiang may earn revenue from project management and consultancy services offered to clients, enhancing its earnings potential. Strategic partnerships with suppliers and subcontractors also play a crucial role in optimizing costs and improving profitability. Furthermore, the company's involvement in real estate development allows it to benefit from property sales and leasing, adding to its overall revenue.

Jujiang Construction Group Co., Ltd. Class H Financial Statement Overview

Summary

Jujiang Construction Group is facing multiple financial challenges, including declining revenue, reduced profitability, and inconsistent cash flows. While leverage appears manageable, the company's overall financial health is under pressure. Strategic actions are required to improve operational efficiency, enhance profitability, and strengthen cash flow management to ensure long-term financial sustainability.

Income Statement

Jujiang Construction Group has experienced declining revenue over recent years, with a significant drop from 2022 to 2023. The gross profit margin has slightly decreased, indicating pressure on cost management. The net income has also dropped significantly, leading to a low net profit margin. Additionally, the company reported negative EBIT in 2024, reflecting operational challenges. The financial performance indicates a need for strategic improvements to regain profitability.

Balance Sheet

The company's debt-to-equity ratio has remained relatively stable, suggesting a balanced leverage approach. However, the equity ratio is modest, and the declining total assets may pose future risks. Despite this, the company has maintained a steady stockholders' equity, which provides a buffer against liabilities. Overall, the balance sheet reflects a need for asset management improvements to enhance financial stability.

Cash Flow

Operating cash flow has shown fluctuations, with a significant drop to zero in 2024, raising concerns about cash generation from operations. The free cash flow has also been inconsistent, indicating challenges in sustaining long-term investments. The cash flow situation underscores the necessity for effective cash management strategies to support operational and financial commitments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.28B	6.78B	8.32B	8.55B	10.05B	8.01B
Gross Profit	217.84M	277.52M	344.13M	363.63M	471.08M	392.75M
EBITDA	20.24M	36.95M	77.13M	131.77M	225.23M	204.35M
Net Income	-10.92M	5.02M	10.57M	54.87M	93.82M	115.35M
Balance Sheet
Total Assets	6.24B	6.31B	6.83B	6.50B	6.16B	5.79B
Cash, Cash Equivalents and Short-Term Investments	284.73M	184.04M	274.31M	383.96M	449.80M	387.16M
Total Debt	595.53M	575.17M	665.83M	676.05M	679.51M	684.28M
Total Liabilities	4.60B	4.67B	5.19B	4.85B	4.55B	4.25B
Stockholders Equity	1.60B	1.60B	1.61B	1.62B	1.58B	1.51B
Cash Flow
Free Cash Flow	102.28M	44.41M	114.53M	46.65M	152.71M	-129.86M
Operating Cash Flow	107.80M	49.03M	129.59M	76.08M	199.35M	-75.71M
Investing Cash Flow	-5.03M	6.51M	-14.72M	-28.55M	-45.78M	-51.35M
Financing Cash Flow	-43.47M	-135.16M	-72.28M	-74.55M	-89.83M	37.50M

Jujiang Construction Group Co., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1459, the sentiment is Neutral. The current price of 0.24 is below the 20-day moving average (MA) of 0.24, below the 50-day MA of 0.25, and below the 200-day MA of 0.32, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 58.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1459.

Jujiang Construction Group Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2663	64 Neutral	HK$155.94M	6.86	8.56%	23.73%	-32.31%	-51.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2017	60 Neutral	HK$157.72M	5.38	2.70%	―	-27.58%	-18.28%
1870	58 Neutral	HK$539.10M	-15.87	-18.78%	―	-8.26%	-240.93%
1757	53 Neutral	HK$7.44B	6,200.00	1.30%	―	78.48%	-33.33%
1459	49 Neutral	HK$132.81M	-11.22	-0.68%	7.69%	-33.92%	-94.74%
1559	45 Neutral	HK$168.22M	-2.07	-46.27%	―	-63.83%	36.12%