Kaisa Group Holdings Ltd. (1638) AI Stock Analysis

• Market Cap: €1.09B
• Dividend Yield: N/A
• Average Volume (3M): 2.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.78
• Revenue Growth: -56.67%
• EPS Growth: -41.38%
• Country: HK
• Employees: 15,225
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Development
• EPS (TTM): -3.00
• Shares Outstanding: 7,015,468,300
• 10 Day Avg. Volume: 1,690,542
• 30 Day Avg. Volume: 2,029,642
• PEG Ratio: <0.01
• Price to Book (P/B): -0.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.42
• 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: 41 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

Kaisa Group Holdings Ltd. faces severe financial distress, with significant declines in revenues and profitability, a high-risk balance sheet, and severe liquidity issues. Technical indicators suggest a bearish trend, with the stock trading below key moving averages. The valuation is unattractive due to negative earnings and lack of dividends.

Kaisa Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Kaisa Group Holdings Ltd. (1638) is a prominent Chinese real estate developer engaged in property development, urban renewal projects, and property management services. The company primarily operates in the residential and commercial real estate sectors, focusing on developing high-quality residential communities, office buildings, and commercial properties across various strategic locations in China.

How the Company Makes Money

Kaisa Group Holdings Ltd. generates revenue mainly through the sale of residential and commercial properties developed by the company. Their primary revenue stream comes from property development, which involves the acquisition of land, construction of buildings, and subsequent sale of these properties to individuals and businesses. Additionally, the company earns income from property management services, which include managing residential communities and commercial properties. Kaisa also engages in urban renewal projects, transforming older urban areas into modern residential and commercial spaces, thereby adding another layer to its revenue generation. Significant partnerships with local governments and financial institutions often facilitate their large-scale projects and contribute to their earnings.

Kaisa Group Holdings Ltd. Financial Statement Overview

Summary

Kaisa Group Holdings Ltd. is facing significant financial challenges across all major financial statements. The income statement shows declining revenues and deep losses, the balance sheet reflects negative equity and high leverage, and the cash flow statement indicates severe liquidity issues. These factors collectively suggest a company under substantial financial distress, with potential risks to its ongoing operations.

Income Statement

Kaisa Group Holdings Ltd. has displayed significant financial distress in its income statement, with steep declines in revenue and profitability over recent years. The most recent annual report shows a negative gross profit margin, indicating the company is selling goods below cost. Additionally, the net profit margin is deeply negative, driven by substantial net losses. The revenue growth rate is negative, reflecting a decline in revenue year-over-year. These factors indicate severe profitability issues and a challenging operating environment.

Balance Sheet

The balance sheet of Kaisa Group Holdings Ltd. reveals a precarious financial position, with liabilities significantly exceeding assets, resulting in negative stockholders' equity. The debt-to-equity ratio is not calculable due to negative equity, highlighting high leverage and potential insolvency risks. The equity ratio is also negative, indicating a lack of financial stability. These metrics suggest a high-risk balance sheet with significant financial challenges.

Cash Flow

The cash flow statement is concerning, with zero operating cash flow in the latest period, indicating potential liquidity issues. Free cash flow is also zero, which poses challenges for reinvestment and debt servicing. Past periods show negative free cash flow and operating cash flow, reflecting ongoing struggles to generate cash from operations. These factors suggest severe cash flow difficulties, raising sustainability concerns.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.56B	26.16B	25.39B	35.54B	55.77B
Gross Profit	-11.06B	1.70B	1.70B	-1.65B	13.33B
EBITDA	-18.76B	-16.52B	-10.70B	-11.19B	6.83B
Net Income	-28.53B	-19.93B	-13.21B	-12.87B	5.45B
Balance Sheet
Total Assets	210.68B	232.82B	264.34B	290.13B	309.90B
Cash, Cash Equivalents and Short-Term Investments	1.61B	1.96B	2.97B	7.69B	44.81B
Total Debt	135.64B	134.20B	134.76B	132.33B	122.03B
Total Liabilities	242.42B	225.10B	229.10B	231.05B	231.18B
Stockholders Equity	-40.58B	-12.05B	7.86B	21.03B	32.33B
Cash Flow
Free Cash Flow	-315.23M	-435.72M	-6.33B	-22.49B	3.32B
Operating Cash Flow	-124.81M	-359.18M	-6.26B	-21.85B	4.53B
Investing Cash Flow	982.51M	-604.37M	2.02B	-13.19B	-25.89B
Financing Cash Flow	-1.13B	-199.14M	3.17B	2.05B	30.42B

Kaisa Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1638, the sentiment is Neutral. The current price of 0.16 is above the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.16, and below the 200-day MA of 0.20, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.58 is Neutral, neither overbought nor oversold. The STOCH value of 44.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1638.

Kaisa Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0131	59 Neutral	€985.54M	6.08	-2.79%	5.96%	92.46%	-154.18%
Sector *	53 Neutral	$1.18B	3.34	-0.11%	7.12%	-1.52%	-126.00%
0563	51 Neutral	HK$1.53B	2.80	-2.45%	9.06%	56.41%	-167.15%
0230	46 Neutral	€1.49B	―	-102.67%	―	-21.75%	-246.70%
1638	41 Neutral	€1.09B	―		―	-56.67%	-41.38%
1813	40 Underperform	HK$1.06B	―	-95.62%	―	-31.29%	57.76%
1238	38 Underperform	HK$1.26B	―	-16.13%	―	10.08%	-118.45%

Kaisa Group Holdings Ltd. Corporate Events

Kaisa Group Strengthens Nomination Committee with New Appointments

Kaisa Group Holdings Ltd. has announced the appointment of Ms. Luo Tingting and Mr. Li Dapeng to its Nomination Committee. This move aligns with upcoming changes to the Corporate Governance Code, effective July 2025, and is expected to enhance the committee’s effectiveness with their diverse experiences and insights.

Kaisa Group Announces Board Composition and Committee Roles

Kaisa Group Holdings Ltd. has announced the composition of its board of directors and their roles within the company. The board includes both executive and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement reflects the company’s commitment to maintaining a structured governance framework, which is crucial for its operational stability and strategic decision-making.

Kaisa Group Updates Nomination Committee Terms

Kaisa Group Holdings Ltd. has revised the terms of reference for its Nomination Committee as of June 30, 2025. The committee, consisting of at least three members with a majority being independent non-executive directors, is responsible for nominating board members and ensuring diversity. The changes aim to enhance governance and transparency, potentially impacting the company’s operational efficiency and stakeholder confidence.

Kaisa Group Extends Debt Restructuring Deadline and Adjourns Winding-Up Hearing

Kaisa Group Holdings Ltd. has announced an extension of the Scheme Longstop Dates for its offshore debt restructuring, with creditor consent, moving the deadline from June 30, 2025, to September 30, 2025. Additionally, the High Court has adjourned the winding-up petition hearing to October 6, 2025, reflecting ongoing efforts to stabilize the company’s financial position and reassure stakeholders.

Kaisa Group Approves Key Resolutions at AGM

Kaisa Group Holdings Ltd. announced the successful passage of all proposed resolutions during its Annual General Meeting held on June 25, 2025. Key resolutions included the adoption of financial statements, re-election of several directors, authorization of director remuneration, re-appointment of auditors, and granting mandates for share buybacks and issuance. These resolutions indicate a stable governance structure and strategic financial planning, potentially enhancing shareholder confidence and supporting the company’s market position.

Kaisa Group Seeks Extension for Debt Restructuring Deadline

Kaisa Group Holdings Ltd. announced a proposed extension of the Scheme Longstop Dates related to its offshore debt restructuring. Due to anticipated delays in receiving necessary regulatory approvals, the company seeks to extend the deadline from June 30, 2025, to September 30, 2025, to ensure all conditions for the restructuring are met. This extension aims to provide additional time for the company and its partner, Rui Jing, to fulfill the restructuring conditions, with all other terms remaining unchanged.

Kaisa Group Completes Offshore Debt Restructuring

Kaisa Group Holdings Ltd. has announced the successful fulfillment of all conditions for the Rui Jing Hong Kong and BVI Schemes, marking the effective date of its offshore debt restructuring. This development is a significant step in stabilizing the company’s financial position and could positively impact its stakeholders by improving its operational and market stability.

Kaisa Group Holdings Ltd. Announces 2025 Annual General Meeting

Kaisa Group Holdings Ltd. has announced its annual general meeting to be held on June 25, 2025, in Hong Kong. The meeting will address ordinary business matters such as the adoption of financial reports, re-election of directors, and the appointment of auditors. Additionally, special business resolutions include authorizing the board to buy back shares and issue additional shares, reflecting the company’s strategic financial management plans.

Kaisa Group Completes Offshore Debt Restructuring

Kaisa Group Holdings Ltd. has announced the successful completion of its offshore debt restructuring, with the effective date of the Kaisa Schemes occurring on April 7, 2025. This development marks a significant step in the company’s financial restructuring efforts, potentially stabilizing its operations and enhancing its position within the real estate industry, thereby impacting stakeholders positively.

Kaisa Group Advances Debt Restructuring with Court Sanction

Kaisa Group Holdings Ltd. announced that the Rui Jing BVI Scheme has been sanctioned by the Eastern Caribbean Supreme Court, marking a significant step in the company’s offshore debt restructuring efforts. The sanctioning of this scheme, along with others, is pivotal for Kaisa’s financial restructuring, potentially impacting its market position and stakeholder interests. The company plans to issue further announcements regarding the effective dates of these schemes.