Zhong Ao Home Group Limited (HK:1538)
:1538
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Zhong Ao Home Group Limited
(1538)
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Rating:74Outperform
Price Target:
HK$0.58
▲(49.23% Upside)
Action:UpgradedDate:01/24/26
The score is driven by solid fundamentals and a strong balance sheet, plus very attractive valuation (low P/E and high dividend yield). Offsetting these positives are cash-flow concerns (no operating/free cash flow reported for 2024) and overheated technical momentum (very high RSI/Stoch), which elevates near-term risk.
Positive Factors
Low leverage / strong equity base
Extremely low leverage and a >50% equity ratio provide durable financial resilience. This structural balance-sheet strength lowers bankruptcy risk, preserves borrowing capacity for capex or M&A, and helps the company weather cyclical downturns without forcing asset sales.
Negative Factors
Operating cash flow weakness
A lack of operating/free cash flow in 2024 indicates potential structural cash conversion issues. Persistent weak cash generation can constrain capex, limit dividend sustainability, and force reliance on external financing despite low leverage, reducing strategic flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong equity base
Extremely low leverage and a >50% equity ratio provide durable financial resilience. This structural balance-sheet strength lowers bankruptcy risk, preserves borrowing capacity for capex or M&A, and helps the company weather cyclical downturns without forcing asset sales.
Read all positive factors
Zhong Ao Home Group Limited (1538) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$598.18M
Dividend Yield6.25%
Average Volume (3M)155.40K
Price to Earnings (P/E)3.1
Beta (1Y)0.32
Revenue Growth2.42%
EPS Growth10.16%
CountryHK
Employees9,351
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding854,550,000
10 Day Avg. Volume185,200
30 Day Avg. Volume155,400
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)0.23
Price to Sales (P/S)0.13
P/FCF Ratio6.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Zhong Ao Home Group Limited Business Overview & Revenue Model
Company Description
Zhong Ao Home Group Limited, an investment holding company, provides property services in the People's Republic of China. The company offers property management services; ancillary services, such as cleaning, gardening, security guard, repair and ...
How the Company Makes Money
Zhong Ao Home Group Limited generates revenue through multiple key streams. Primarily, the company earns income from the sale of its home improvement products, including furniture and renovation materials, through both direct retail and online pla...
Zhong Ao Home Group Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.79B | 1.78B | 1.71B | 1.70B | 1.87B | 1.75B |
| Gross Profit | 373.75M | 366.81M | 350.56M | 358.23M | 431.86M | 441.64M |
| EBITDA | 172.85M | 168.86M | 161.95M | 161.72M | 209.85M | 209.04M |
| Net Income | 91.01M | 88.90M | 80.05M | 76.91M | 106.28M | 131.51M |
Balance Sheet | ||||||
| Total Assets | 1.99B | 1.94B | 2.07B | 1.96B | 2.19B | 2.07B |
| Cash, Cash Equivalents and Short-Term Investments | 480.88M | 545.16M | 534.54M | 453.73M | 450.54M | 510.78M |
| Total Debt | 46.84M | 52.87M | 61.26M | 61.34M | 68.78M | 117.50M |
| Total Liabilities | 855.23M | 842.33M | 1.03B | 970.19M | 1.20B | 1.18B |
| Stockholders Equity | 1.07B | 1.04B | 970.33M | 916.59M | 899.25M | 814.33M |
Cash Flow | ||||||
| Free Cash Flow | 23.90M | 34.81M | 96.86M | 63.45M | -14.94M | 194.58M |
| Operating Cash Flow | 47.22M | 58.77M | 124.08M | 83.53M | 33.83M | 217.26M |
| Investing Cash Flow | -6.88M | -7.76M | -311.00K | -68.46M | -42.24M | -80.72M |
| Financing Cash Flow | -49.64M | -36.96M | -40.14M | -4.76M | -51.16M | -102.26M |
Zhong Ao Home Group Limited Technical Analysis
Positive
0.39
Price Trends
0.53
Positive
0.47
Positive
0.44
Positive
Market Momentum
0.04
Negative
84.87
Negative
88.61
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 0.39 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.53, and below the 200-day MA of 0.44, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 84.87 is Negative, neither overbought nor oversold. The STOCH value of 88.61 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$598.18M | 3.13 | 8.62% | 6.25% | 2.42% | 10.16% | |
73 Outperform | HK$260.94M | 2.68 | 15.77% | 11.22% | 11.13% | 142.00% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
56 Neutral | HK$254.68M | 10.33 | 6.98% | 3.90% | -3.62% | 26.66% | |
50 Neutral | HK$207.98M | 2.27 | -140.74% | ― | -2.44% | ― | |
49 Neutral | HK$368.16M | 11.39 | 0.43% | ― | 14.13% | -6.61% |
* Real Estate Sector Average
HK:1538
Zhong Ao Home Group Limited
0.70
0.43
159.26%
HK:1778
Colour Life Services Group Co
0.20
0.05
32.00%
HK:1153
Jiayuan Services Holdings Limited
0.34
0.07
25.93%
HK:1895
Xinyuan Property Management Service (Cayman) Ltd.
0.44
-0.09
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HK:1922
Yincheng Life Service Co., Ltd.
1.36
0.00
0.00%
HK:2376
Lushang Life Services Co., Ltd. Class H
1.91
0.49
34.51%
Zhong Ao Home Group Limited Corporate Events
Zhong Ao Home Plans PRC Joint Venture and Unlisted Warrant Issue
Jan 9, 2026
Zhong Ao Home Group Limited has announced that its wholly owned subsidiary Guangdong Xunhua will form a new joint venture company in mainland China with Tokyo Universe, to be owned 51% by Guangdong Xunhua and 49% by Dongyu Technology, with certain...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.