Jia Yao Holdings Limited (1626) AI Stock Analysis

• Market Cap: HK$1.65B
• Dividend Yield: N/A
• Average Volume (3M): 609.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -82.87%
• EPS Growth: -110.99%
• Country: HK
• Employees: 825
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): -0.03
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 588,500
• 30 Day Avg. Volume: 609,066
• PEG Ratio: -1.39
• Price to Book (P/B): 12.16
• Price to Sales (P/S): 7.11
• P/FCF Ratio: -113.28
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: HK$2.50 ▲(0.00% Upside)

Jia Yao Holdings Limited faces significant challenges with declining revenue, negative earnings, and bearish technical indicators. While the company maintains a strong gross profit margin and low leverage, these are overshadowed by liquidity concerns and poor valuation metrics.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient cost management and pricing power, supporting long-term profitability despite revenue challenges.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing the company to navigate economic fluctuations and invest in growth opportunities.

Stable Equity Ratio

A stable equity ratio indicates a strong financial foundation, reducing reliance on debt and enhancing resilience against market volatility.

Negative Factors

Significant Revenue Decline

A significant revenue decline may indicate market or operational challenges, potentially impacting future growth and profitability.

Zero Operating Cash Flow

Zero operating cash flow raises concerns about cash management and the company's ability to sustain operations without external financing.

Decreased Return on Equity

Decreased return on equity suggests declining efficiency in generating profits from shareholders' equity, potentially affecting investor confidence.

Jia Yao Holdings Limited Business Overview & Revenue Model

Company Description

Jia Yao Holdings Limited (1626) is a Hong Kong-based investment holding company primarily engaged in the provision of construction and engineering services. The company operates within various sectors, including civil engineering, building construction, and project management. Its core products and services focus on delivering comprehensive solutions for construction projects, ranging from residential buildings to infrastructure developments.

How the Company Makes Money

Jia Yao Holdings Limited generates revenue primarily through its construction and engineering contracts. The company secures projects through competitive bidding and long-term partnerships with both public and private sector clients. Key revenue streams include fixed-price contracts for construction projects, fee-based services for project management, and additional income from consultancy services. Significant partnerships with government bodies and real estate developers enhance its project pipeline, ensuring a steady flow of income. Furthermore, the company may benefit from economies of scale, leading to improved margins on larger projects.

Jia Yao Holdings Limited Financial Statement Overview

Summary

Jia Yao Holdings Limited shows strengths in maintaining a solid gross profit margin and low leverage, providing a cushion against financial volatility. However, significant revenue decline, reduced profitability, and concerning cash flow figures highlight potential operational and liquidity challenges.

Income Statement

Jia Yao Holdings Limited's income statement shows a significant decline in total revenue from 2023 to 2024, likely due to market conditions or operational challenges. Despite this, the company has maintained a strong gross profit margin of 27.1% in 2024. The net profit margin stands at 6.6%, indicating profitability, although it has decreased from the previous year's 6.8%. EBIT and EBITDA margins are at 4.2% and 5.9% respectively, showing a decline compared to 2023, reflecting potential efficiency issues.

Balance Sheet

The balance sheet indicates a strong equity position with a debt-to-equity ratio of 0.3, suggesting low leverage and financial stability. The equity ratio is 52%, which is healthy, showing that more than half of the company's assets are funded by equity. However, the return on equity has decreased significantly due to lower net income, which could be a concern for investors.

Cash Flow

Jia Yao Holdings Limited's cash flow statement is concerning because it shows zero operating cash flow and free cash flow in 2024, highlighting potential cash management issues. The absence of cash flow metrics makes it difficult to assess the company's ability to generate cash from its operations compared to previous years, posing a risk to its financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	288.17M	770.48M	1.46B	968.36M	688.94M	576.24M
Gross Profit	112.98M	208.75M	387.46M	137.86M	65.02M	73.70M
EBITDA	-12.49M	45.23M	197.34M	31.38M	-12.05M	-12.78M
Net Income	19.05M	50.61M	99.28M	5.50M	-26.22M	-26.20M
Balance Sheet
Total Assets	605.46M	866.44M	1.47B	1.07B	755.98M	597.88M
Cash, Cash Equivalents and Short-Term Investments	114.56M	262.91M	384.54M	298.70M	75.60M	79.90M
Total Debt	130.82M	133.20M	92.78M	76.00M	103.52M	110.82M
Total Liabilities	300.08M	374.14M	925.22M	690.38M	549.64M	368.46M
Stockholders Equity	266.02M	450.43M	402.96M	327.77M	160.41M	186.15M
Cash Flow
Free Cash Flow	-60.14M	-48.35M	23.80M	65.59M	3.52M	-60.02M
Operating Cash Flow	-53.61M	-22.19M	68.50M	80.54M	34.22M	-52.79M
Investing Cash Flow	84.81M	-51.63M	-35.13M	-7.82M	-27.17M	-6.94M
Financing Cash Flow	-211.37M	37.80M	12.67M	127.14M	-11.72M	54.33M

Jia Yao Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1626, the sentiment is Neutral. The current price of 2.5 is above the 20-day moving average (MA) of 2.41, below the 50-day MA of 2.58, and below the 200-day MA of 3.04, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 80.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1626.

Jia Yao Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
6898	58 Neutral	HK$670.27M	42.01	13.20%	0.58%	-2.08%	-23.18%
0403	51 Neutral	HK$93.62M	-3.48	-10.45%	14.53%	-7.65%	-456.37%
1626	49 Neutral	HK$1.65B	-149.46	-7.35%	―	-82.87%	-110.99%
1820	46 Neutral	HK$748.57M	―	-5.51%	3.20%	3.51%	-950.83%
8291	45 Neutral	HK$13.60M	3.08	―	―	-44.08%	―
2320	41 Neutral	HK$67.86M	―	-12.11%	―	-23.51%	-5.26%

Jia Yao Holdings Limited Corporate Events

Jia Yao Holdings Limited Announces Change of Auditor

Jia Yao Holdings Limited announced a change of auditor due to an inability to agree on audit fees with PricewaterhouseCoopers (PwC) for the 2025 Financial Year. PwC has resigned, and SHINEWING (HK) CPA Limited has been appointed as the new auditor. The Board assures that the change will not impact the audit for the 2025 Financial Year and expresses gratitude to PwC for their past services.