Zhong Ao Home Group Limited (1538) AI Stock Analysis

• Market Cap: HK$303.37M
• Dividend Yield: 7.04%
• Average Volume (3M): 388.20K
• Price to Earnings (P/E): 3.1
• Beta (1Y): 0.43
• Revenue Growth: 2.04%
• EPS Growth: 8.36%
• Country: HK
• Employees: 9,351
• Sector: Real Estate
• Sector Strength: 54
• Industry: Real Estate - Services
• EPS (TTM): 0.11
• Shares Outstanding: 854,550,000
• 10 Day Avg. Volume: 271,800
• 30 Day Avg. Volume: 388,200
• PEG Ratio: 0.87
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.50
• 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: 81 Outperform
• Price Target: HK$0.50 ▲(38.89%Upside)

Zhong Ao Home Group's stock is primarily driven by its attractive valuation, indicating strong return potential with a low P/E ratio and high dividend yield. The technical analysis supports a positive momentum trend. However, financial performance suggests a need to address cash flow challenges to sustain long-term growth.

Zhong Ao Home Group Limited Business Overview & Revenue Model

Company Description

Zhong Ao Home Group Limited is a prominent player in the property management industry, primarily operating in the People's Republic of China. The company provides comprehensive property management services, including security, cleaning, gardening, and customer services, catering to residential communities, commercial properties, and public facilities. With a focus on delivering high-quality services, Zhong Ao Home has established itself as a leader in enhancing the living and working environments of its clients.

How the Company Makes Money

Zhong Ao Home Group Limited generates its revenue primarily through service fees charged for its property management services. The company earns money by entering into contracts with property owners, developers, and residential communities to deliver tailored management solutions. These contracts typically involve recurring fees based on the size and type of property serviced. Additionally, the company may also derive income from value-added services, which include home decoration, maintenance, and repair services, offered to residents and property owners. Strategic partnerships with real estate developers and local governments further bolster its revenue streams by expanding its client base and service offerings.

Zhong Ao Home Group Limited Financial Statement Overview

Summary

Zhong Ao Home Group demonstrates consistent revenue growth and profitability with a solid balance sheet. However, cash flow challenges and slight declines in profitability margins indicate areas for improvement.

Income Statement

Zhong Ao Home Group has demonstrated consistent revenue growth with a notable revenue increase of 4.05% in 2024. The gross profit margin stands at 20.62% and net profit margin at 5.00%, both indicating healthy profitability. The EBIT margin of 7.44% and EBITDA margin of 9.49% further highlight operational efficiency. However, the slight decline in overall profitability compared to prior years suggests room for improvement.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 53.59%. The debt-to-equity ratio of 0.05 indicates low leverage, minimizing financial risk. Return on equity (ROE) is at 8.55%, showing moderate profitability relative to shareholder equity. While the equity base is strong, the company could focus on enhancing returns for shareholders.

Cash Flow

The cash flow statement shows volatility with no operating or free cash flow reported for 2024. Historically, the company had a stable operating cash flow to net income ratio, but recent figures suggest potential cash flow management issues. The lack of free cash flow growth in 2024 is a concern. Ensuring positive cash flow will be key for future financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.78B	1.71B	1.70B	1.87B	1.75B
Gross Profit	366.81M	350.56M	358.23M	431.86M	441.64M
EBITDA	168.86M	161.95M	161.72M	209.85M	209.04M
Net Income	88.90M	80.05M	76.91M	106.28M	131.51M
Balance Sheet
Total Assets	1.94B	2.07B	1.96B	2.19B	2.07B
Cash, Cash Equivalents and Short-Term Investments	545.16M	534.54M	453.73M	450.54M	510.78M
Total Debt	52.87M	61.26M	61.34M	68.78M	117.50M
Total Liabilities	842.33M	1.03B	970.19M	1.20B	1.18B
Stockholders Equity	1.04B	970.33M	916.59M	899.25M	814.33M
Cash Flow
Free Cash Flow	34.81M	96.86M	63.45M	-14.94M	194.58M
Operating Cash Flow	58.77M	124.08M	83.53M	33.83M	217.26M
Investing Cash Flow	-7.76M	-311.00K	-68.46M	-42.24M	-80.72M
Financing Cash Flow	-36.96M	-40.14M	-4.76M	-51.16M	-102.26M

Zhong Ao Home Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.36
• 50DMA: Positive
• 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:1538, the sentiment is Positive. The current price of 0.36 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.32, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 64.66 is Neutral, neither overbought nor oversold. The STOCH value of 80.56 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1538.

Zhong Ao Home Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1538	81 Outperform	HK$303.37M	3.15	8.86%	7.04%	2.04%	8.36%
2376	72 Outperform	HK$429.35M	8.78	8.33%	3.67%	-3.67%	―
1895	71 Outperform	HK$290.59M	3.00	15.54%	11.14%	13.95%	185.84%
Sector *	59 Neutral	C$1.25B	-1.14	-8.19%	4.99%	10.83%	-22.67%
1778	55 Neutral	HK$343.99M	13.41	0.44%	―	23.44%	-22.03%
1153	43 Neutral	HK$272.21M	31.12		―	-3.04%	―

Zhong Ao Home Group Limited Corporate Events

Zhong Ao Home Group Limited Strengthens Governance with New Nomination Committee

Zhong Ao Home Group Limited has established a Nomination Committee to enhance its corporate governance structure. The committee, consisting mainly of independent non-executive directors, is tasked with reviewing the board’s composition, recommending new board members, assessing the independence of directors, and supporting succession planning. This move aims to align the board’s capabilities with the company’s strategic goals and ensure a diverse and effective leadership team.

Zhong Ao Home Group Announces Board and Committee Changes

Zhong Ao Home Group Limited has announced changes in its board and committee composition, effective from June 5, 2025. Mr. Yang Jianpeng has been appointed as an independent non-executive director and a member of the Audit Committee, while Mr. Yin Weizhong has resigned from these roles. Additionally, Mr. Chan Wai Cheung, Admiral, has been appointed as the chairman of the Nomination Committee, replacing Mr. Liu Jian, and Ms. Chen Zhuo has been appointed as a member of the Nomination Committee. These changes reflect the company’s ongoing efforts to strengthen its governance and strategic oversight.

Zhong Ao Home Group Limited Announces Board Composition and Committee Roles

Zhong Ao Home Group Limited has announced the composition of its board of directors and the roles within its three board committees. This announcement may impact the company’s governance structure and strategic decision-making, potentially influencing its market positioning and stakeholder relations.

Zhong Ao Home Group Secures Unanimous Approval at AGM

Zhong Ao Home Group Limited held its Annual General Meeting on June 3, 2025, where all proposed resolutions were unanimously approved. The resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and granting of mandates related to share issuance and buybacks. This unanimous approval reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility in managing its share capital.

Zhong Ao Home Group Limited Announces 2025 Annual General Meeting

Zhong Ao Home Group Limited has announced its upcoming Annual General Meeting scheduled for June 3, 2025, in Foshan City, China. Key agenda items include the adoption of the 2024 financial statements, declaration of a final dividend, re-election of directors, and re-appointment of the external auditor. The meeting will also address the authorization for the board to issue shares, not exceeding 20% of the total shares, which could impact the company’s capital structure and shareholder value.