Jia Yao Holdings Limited (1626) AI Stock Analysis

• Market Cap: HK$1.48B
• Dividend Yield: N/A
• Average Volume (3M): 609.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$2.50 ▼(-8.76% Downside)

The score is primarily weighed down by financial risks—especially the zero operating/free cash flow reported and the revenue/profitability decline—despite the company’s low leverage and healthy equity base. Technicals are supportive due to an uptrend above major moving averages, but overbought readings (RSI/Stoch) add near-term risk. Valuation is a headwind because the negative P/E reduces comparability and no dividend yield is available.

Positive Factors

High gross margin

A 27.1% gross margin indicates the company retains healthy project-level profitability, suggesting pricing power or efficient execution on awarded contracts. This durable project margin provides a buffer against raw-material or labor cost inflation and supports long-term profitability if scale is restored.

Low leverage and healthy equity

Low leverage and a 52% equity ratio give the company financial flexibility to fund bids, absorb contract timing mismatches, and withstand cyclical downturns. This capital structure supports longer-term investment in operations and reduces refinancing risk in a capital-intensive construction sector.

Diversified services and stable project pipeline

A business mix across civil engineering, building construction and project management plus government and developer relationships creates recurring project flow and repeat-client opportunities. This structural diversification reduces single-segment exposure and supports steadier backlog over multiple contract cycles.

Negative Factors

Severe revenue decline

An over 80% revenue decline materially erodes scale advantages, undermines fixed-cost absorption and weakens negotiating leverage with suppliers. In construction, prolonged revenue contraction reduces backlog and bidding capacity, making recovery slow given long project cycles and contracting lead times.

Zero operating and free cash flow

Absence of operating and free cash flow is a structural concern for a contractor: it limits working capital for new projects, increases reliance on external financing, and can impair timely supplier and subcontractor payments. Sustainable cash generation is essential for bid competitiveness and long-term viability.

Compressed operating margins

Low EBIT and EBITDA margins reduce the company's cushion against cost overruns and competitive tendering pressures common in construction. Margin compression limits reinvestment, slows deleveraging or reserve building, and makes returns sensitive to modest cost or pricing shifts over the medium term.

Jia Yao Holdings Limited Business Overview & Revenue Model

Company Description

Jia Yao Holdings Limited, an investment holding company, designs, manufactures, prints, and sells paper cigarette and social product paper packages in the People's Republic of China. The company operates through: Paper Cigarette Packages, Social Product Paper Packages, Electronic Cigarettes, and Trading Good segments. It offers paper cigarette packages, including hard and soft cigarette packets; cigarette cartons; and gift sets to pack and carry various sets of cigarette packets. The company also provides social product paper packages, such as colored boxes, labels, gift sets, and paper bags for packaging drugs and medicines, liquor and alcoholic beverages, and food and other social products. In addition, it engages in the trading of goods, which includes mainboards for cell phones; and technology research and development, production, and sale of e-cigarettes, e-cigarettes vaping devices, and other electronic products. The company was formerly known as Tourism International Holdings Limited and changed its name to Jia Yao Holdings Limited in July 2019. Jia Yao Holdings Limited was founded in 1992 and is headquartered in Yichang, the People's Republic of China.

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

Mixed fundamentals: solid balance sheet with low leverage (debt-to-equity 0.3) and a healthy equity ratio (52%), and a strong 2024 gross margin (27.1%). Offsetting this are a significant revenue decline, weaker profitability (net margin down to 6.6%; EBIT/EBITDA margins 4.2%/5.9%), and a concerning 2024 cash flow picture with zero operating and free cash flow reported.

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: Negative
• Last Price: 2.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1626, the sentiment is Negative. The current price of 2.74 is above the 20-day moving average (MA) of 2.48, above the 50-day MA of 2.50, and above the 200-day MA of 2.73, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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%
1626	58 Neutral	HK$1.48B	-134.24	-7.35%	―	-82.87%	-110.99%
6898	58 Neutral	HK$660.83M	41.42	13.20%	0.59%	-2.08%	-23.18%
0403	51 Neutral	HK$77.60M	-1.23	-10.45%	16.13%	-7.65%	-456.37%
1820	46 Neutral	HK$751.58M	-24.49	-5.51%	3.20%	3.51%	-950.83%
8291	45 Neutral	HK$14.13M	3.20	―	―	-44.08%	―
2320	45 Neutral	HK$56.42M	-0.63	-12.11%	―	-23.51%	-5.26%

Jia Yao Holdings Limited Corporate Events

Jia Yao Holdings Limited Relocates Headquarters in China

Jia Yao Holdings Limited announced a change in its headquarters and principal place of business in the People’s Republic of China, effective from December 15, 2025. The new location will be in Shenzhen City, Guangdong Province. This move may indicate a strategic shift or expansion within the region, potentially impacting the company’s operations and market positioning.

The most recent analyst rating on (HK:1626) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Jia Yao Holdings Limited stock, see the HK:1626 Stock Forecast page.

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.

The most recent analyst rating on (HK:1626) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Jia Yao Holdings Limited stock, see the HK:1626 Stock Forecast page.