Zhongmiao Holdings (Qingdao) Co., Ltd. Class H (1471) AI Stock Analysis

• Market Cap: HK$7.03B
• Dividend Yield: 0.84%
• Average Volume (3M): 8.80K
• Price to Earnings (P/E): 39.0
• Beta (1Y): -0.18
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 131
• Sector: Services
• Sector Strength: N/A
• Industry: Insurance - Brokers
• EPS (TTM): N/A
• Shares Outstanding: 35,300,000
• 10 Day Avg. Volume: 6,000
• 30 Day Avg. Volume: 8,800
• PEG Ratio: 2.32
• Price to Book (P/B): 2.48
• Price to Sales (P/S): 7.24
• P/FCF Ratio: 49.62
• 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: 68 Neutral
• Price Target: HK$19.00 ▲(5.73% Upside)
• Action: Downgraded Date: 01/07/26
• Date: Action: Downgraded 01/07/26

The score is primarily supported by strong financial performance and a very low-risk, near debt-free balance sheet. This is tempered by a mixed technical picture (near-term weakness despite a constructive longer-term trend) and a stretched valuation (high P/E with a modest yield).

Positive Factors

Conservative balance sheet

Near-zero debt materially reduces financial distress risk and preserves strategic optionality. A capital-light, low-leverage profile supports durable underwriting capacity, opportunistic M&A or buybacks, and resilience through industry cycles without relying on external financing.

Steady revenue and profit growth

Sustained top-line expansion with a notable 2024 step-up indicates durable demand or successful market penetration. Consistent profit growth provides a foundation for reinvestment, margin recovery, and compounding shareholder value versus peers reliant on episodic sales.

Reliable free cash flow conversion

Tight FCF-to-net-income correlation signals high earnings quality and sustainable cash generation. Positive FCF growth restores balance-sheet flexibility, funds organic growth or returns to shareholders, and reduces dependence on external capital for strategic moves.

Negative Factors

Margin compression in 2024

Widening cost pressure or adverse mix reduced gross and net margins in 2024, threatening sustainable profitability. If structural, this could erode operating leverage and require pricing power or efficiency gains to restore prior margin levels and long-term cash flow generation.

Operating cash flow below net income

Persistent OCF < net income suggests working-capital drains or timing mismatches that can produce cash volatility. Over time, this undermines free cash flow reliability and may constrain funding for growth, dividends, or capital allocation without drawing on reserves.

ROE softened after equity expansion

A larger equity base dilutes ROE when incremental returns lag, reducing capital efficiency. If higher equity does not quickly translate into proportionally higher profits, shareholder returns may be pressured and management must improve margins or asset turnover to restore ROE.

Zhongmiao Holdings (Qingdao) Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Zhongmiao Holdings (Qingdao) Co., Ltd. offers insurance agency service and solution in the People's Republic of China. It operates through three segments: Insurance Agency Business, IT Services, and Consulting Services. The company provides a range of insurance products, such as property, life and health, accident, and automobile insurance products through insurance agents, strategic channel partners, and direct sales to corporate and household insurance clients. It also offers IT services comprising insurance related systems, such as insurance claims, insurance intermediary core business, and AI service systems providing certificate recognition and document processing services to insurance company partners, insurance intermediaries, and companies; and consulting services, including human resources consulting, marketing, and promotion services. In addition, the company provides advice on human resource management and recruitment strategies; and recruitment services. Zhongmiao Holdings (Qingdao) Co., Ltd. was founded in 2017 and is based in Qingdao, the People's Republic of China. Zhongmiao Holdings (Qingdao) Co., Ltd. operates as a subsidiary of Qingdao Haiyinghui Management Consulting Co., Ltd.

How the Company Makes Money

Zhongmiao Holdings (Qingdao) Co., Ltd. Class H Financial Statement Overview

Summary

Strong overall financial quality: steady revenue/profit growth and healthy profitability, supported by an exceptionally conservative balance sheet with essentially no leverage. Offsetting factors are 2024 margin compression, softer ROE after the equity/asset expansion, and operating cash flow running below net income (potential working-capital timing volatility).

Income Statement

Revenue has grown steadily from 2021–2024 (with a strong step-up in 2024), supporting consistent profit expansion. Profitability is solid with net margins holding in the low-to-mid 20% range and operating profitability remaining healthy. The main watch-out is some margin compression in 2024 versus 2022–2023 (lower gross and net margins), suggesting rising costs or mix shift.

Balance Sheet

The balance sheet is exceptionally conservative with essentially no leverage (debt-to-equity near zero and zero total debt in 2024), which materially reduces financial risk. Equity and total assets expanded sharply in 2024, strengthening the capital base. A key downside is that return on equity has softened in 2024 versus prior years, indicating the larger equity base is currently generating a lower percentage return.

Cash Flow

Free cash flow tracks net income closely each year, indicating strong earnings quality and good cash conversion. Free cash flow growth was positive again in 2024 after a dip in 2023, showing resilience. However, operating cash flow remains below net income (coverage below 1.0 across the period), which points to working-capital or timing effects that can create periodic cash flow volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	230.95M	205.83M	174.01M	148.40M	119.97M
Gross Profit	83.73M	78.83M	74.51M	67.26M	48.05M
EBITDA	50.83M	58.12M	50.37M	47.37M	33.77M
Net Income	50.13M	46.66M	40.37M	37.78M	27.05M
Balance Sheet
Total Assets	647.38M	635.39M	389.95M	327.10M	284.83M
Cash, Cash Equivalents and Short-Term Investments	464.38M	432.36M	203.64M	288.83M	256.72M
Total Debt	21.00K	0.00	244.00K	250.00K	1.11M
Total Liabilities	42.97M	37.02M	26.73M	34.07M	28.16M
Stockholders Equity	606.20M	600.20M	365.21M	293.64M	255.86M
Cash Flow
Free Cash Flow	17.89M	30.04M	19.78M	27.03M	24.41M
Operating Cash Flow	17.89M	30.05M	19.98M	27.20M	24.59M
Investing Cash Flow	22.14M	-258.83M	138.22M	-19.75M	-151.04M
Financing Cash Flow	181.63M	194.34M	21.89M	-1.89M	127.15M

Zhongmiao Holdings (Qingdao) Co., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1127	74 Outperform	HK$984.76M	3.45	14.20%	7.86%	-4.03%	8.61%
1471	68 Neutral	HK$7.03B	38.95	10.02%	0.84%	―	―
2886	67 Neutral	HK$1.54B	2.05	8.96%	6.91%	-16.94%	-22.17%
0206	67 Neutral	HK$1.74B	8.09	3.95%	3.77%	-8.93%	-25.43%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
0326	49 Neutral	HK$11.03B	-12.54	-14.75%	―	184.30%	3.58%
0931	40 Underperform	HK$2.60B	-10.83	-40.82%	―	23.08%	23.40%

Zhongmiao Holdings (Qingdao) Co., Ltd. Class H Corporate Events

Zhongmiao Details Pricing Rules for Connected Transactions with Haier Group

Zhongmiao Holdings (Qingdao) Co., Ltd. has issued a supplemental announcement detailing the pricing policies underpinning its revised 2025 and 2026 annual caps for continuing connected transactions with Haier Group and its associates under a comprehensive services framework. The company sets fees for office and logistics, administrative, consulting, referral and business support services through arm’s length negotiations, benchmarked against prevailing market rates and historical fees, and often supported by at least two third-party quotations or internal bidding processes to ensure fairness. For administrative and travel-related services, Zhongmiao will tap Haier Group’s unified systems to secure preferential rates, while referral service fees are structured to maintain a gross profit margin of roughly 30% to 70% for its insurance agency business, subject to internal controls, board oversight and auditor verification. The detailed methodology is aimed at demonstrating that these related-party transactions are conducted on normal commercial terms, are competitively priced, and are designed to protect the interests of the company and its shareholders by enhancing efficiency, transparency and compliance in its connected dealings with Haier Group.

The most recent analyst rating on (HK:1471) stock is a Buy with a HK$20.50 price target. To see the full list of analyst forecasts on Zhongmiao Holdings (Qingdao) Co., Ltd. Class H stock, see the HK:1471 Stock Forecast page.

Zhongmiao Holdings to Cut H-Share Board Lot Size to Boost Liquidity

Zhongmiao Holdings (Qingdao) Co., Ltd., a PRC-incorporated joint stock company with H shares listed on the Main Board of the Hong Kong Stock Exchange, operates through a share structure that includes renminbi-denominated H shares available to international investors. The company’s capital is represented in board lots that determine the minimum tradable units of its H shares in the secondary market.

The company has announced that, with effect from 9:00 a.m. on 2 February 2026, the standard trading board lot size of its H shares on the Hong Kong Stock Exchange will be reduced from 500 shares to 100 shares, cutting the board lot value from HK$8,750 to HK$1,750 based on the latest closing price. Management believes the smaller board lot will lower the entry threshold for investors, enhance liquidity and help broaden the shareholder base, while not affecting shareholders’ relative rights. Existing share certificates in lots of 500 shares can be exchanged free of charge for new certificates in lots of 100 shares between 19 January and 27 February 2026, and no special odd-lot matching arrangements will be put in place as the change itself will not create new odd lots beyond those already existing.

The most recent analyst rating on (HK:1471) stock is a Buy with a HK$20.00 price target. To see the full list of analyst forecasts on Zhongmiao Holdings (Qingdao) Co., Ltd. Class H stock, see the HK:1471 Stock Forecast page.

Zhongmiao Holdings Revises Annual Caps for 2025 and 2026

Zhongmiao Holdings has announced a revision of its annual caps for the years 2025 and 2026 under the Comprehensive Services Framework Agreement with Haier Group. The company anticipates increased demand for its services, prompting a rise in the annual caps to RMB8.0 million and RMB10.0 million, respectively. This adjustment reflects the company’s strategic response to its growing operational needs and ensures compliance with the Hong Kong Listing Rules, although it remains exempt from certain approval requirements.