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Hebei Construction Group Co. Ltd. Class H (HK:1727)
:1727
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Hebei Construction Group Co. Ltd. Class H
(1727)
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Select Model
Rating:60Neutral
Price Target:
HK$0.50
▲(31.58% Upside)
The overall stock score of 60 reflects significant financial performance challenges, including declining revenue and profitability, increased leverage, and negative cash flow. Technical analysis indicates bearish momentum, with the stock being oversold. However, the low P/E ratio suggests potential undervaluation, which could be attractive to value investors.
Positive Factors
Market Position
Being a leading construction company in China provides Hebei Construction Group with a strong market position, enabling it to leverage its reputation and expertise to secure large-scale projects, ensuring long-term business sustainability.
Business Model Strength
Diversification across multiple sectors such as residential, commercial, and infrastructure projects allows Hebei Construction Group to mitigate risks associated with sector-specific downturns, ensuring stable revenue streams over time.
Strategic Partnerships
Strategic partnerships enhance Hebei Construction Group's ability to manage costs and optimize operational efficiencies, providing a competitive edge and supporting long-term revenue growth and profitability.
Negative Factors
Declining Revenue
A significant decline in revenue indicates potential challenges in maintaining market share and competitiveness, which could impact long-term financial health and operational sustainability.
Negative Cash Flow
Negative cash flow highlights potential liquidity issues, limiting Hebei Construction Group's ability to invest in growth opportunities and manage financial obligations, posing risks to long-term stability.
Increased Leverage
Higher leverage can strain financial flexibility and increase risk, especially in a declining revenue environment, potentially affecting Hebei Construction Group's ability to sustain operations and invest in future growth.
Hebei Construction Group Co. Ltd. Class H (1727) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$678.13M
Dividend YieldN/A
Average Volume (3M)155.91K
Price to Earnings (P/E)4.2
Beta (1Y)0.93
Revenue Growth-25.78%
EPS Growth-18.64%
CountryHK
Employees6,940
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.06
Shares Outstanding461,383,480
10 Day Avg. Volume292,750
30 Day Avg. Volume155,908
Financial Highlights & Ratios
PEG Ratio-15.79
Price to Book (P/B)0.18
Price to Sales (P/S)0.04
P/FCF Ratio-0.72
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
Hebei Construction Group Co. Ltd. Class H Business Overview & Revenue Model
Company DescriptionHebei Construction Group Corporation Limited engages in the construction contracting of buildings and infrastructure projects in the People's Republic of China. The company operates through two segments, Construction Contracting and Others. It provides construction contracting services for residential, public works, industrial, and commercial construction projects; and municipal and transportation infrastructure, including facilities for wedged and reclaimed water treatment, gas and heating, urban pipelines, landscaping, roads, bridges, and airport runways, as well as specialized and other construction works, including electrical and mechanical installation, and steel structure. The company was founded in 1952 and is headquartered in Baoding, the People's Republic of China. Hebei Construction Group Corporation Limited is a subsidiary of Zhongru Investment Co., Ltd.
How the Company Makes MoneyHebei Construction Group generates revenue primarily through its construction contracts, which include public sector projects and private sector developments. The company earns money by bidding on and securing contracts for various construction projects, where it receives payments based on milestones achieved during project execution. Key revenue streams include civil engineering works, building construction, infrastructure development, and project management services. Additionally, Hebei Construction Group may benefit from strategic partnerships with government entities and private developers, enhancing its ability to secure lucrative contracts. Factors contributing to its earnings include the scale of projects undertaken, efficiency in project execution, and the overall demand for construction services within the regions it operates.
Hebei Construction Group Co. Ltd. Class H Financial Statement Overview
Summary
Hebei Construction Group Co. Ltd. Class H faces challenges with declining revenue and profitability margins, alongside increased leverage and low equity financing. Cash flow generation is a concern, with negative free cash flow indicating potential liquidity issues. Despite these challenges, the company maintains a modest level of gross profitability and equity position, suggesting opportunities for operational and financial improvements.Income Statement
The company's revenue has experienced a decline from 2022 to 2024, with a negative revenue growth rate of -25.16% in 2024. The gross profit margin for 2024 stands at 5.48%, indicating a modest level of profitability. Net profit margin slightly decreased to 0.68% in 2024, showing a low level of bottom-line profitability. EBIT and EBITDA margins are also low, at 0.81% and 2.67% respectively, reflecting operational challenges.Balance Sheet
The company's debt-to-equity ratio increased to 0.98 in 2024, indicating a higher leverage position. Return on equity (ROE) is relatively low at 2.74%, which may suggest inefficiencies in generating returns on equity capital. The equity ratio is 10.07%, indicating a small portion of assets are financed by equity. Overall, the balance sheet shows a moderately leveraged position with room for improvement in equity financing.Cash Flow
The company has faced challenges in generating cash flow, with both operating and free cash flows being negative in 2024. The free cash flow to net income ratio is not calculable due to negative free cash flow, and the operating cash flow to net income ratio is also not available. These factors highlight potential liquidity issues and insufficient cash generation relative to net income.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.95B | 25.06B | 33.49B | 40.01B | 47.83B | 40.15B |
| Gross Profit | 1.23B | 1.37B | 1.80B | 1.63B | 2.49B | 2.14B |
| EBITDA | 637.25M | 668.88M | 652.58M | 819.82M | -93.16M | 1.27B |
| Net Income | 148.43M | 170.71M | 171.40M | 326.73M | -345.98M | 759.86M |
Balance Sheet | ||||||
| Total Assets | 58.38B | 61.84B | 64.89B | 67.63B | 66.95B | 62.79B |
| Cash, Cash Equivalents and Short-Term Investments | 4.32B | 5.77B | 7.70B | 9.13B | 8.81B | 8.45B |
| Total Debt | 5.94B | 6.07B | 5.33B | 5.11B | 4.00B | 4.25B |
| Total Liabilities | 51.91B | 55.45B | 58.66B | 61.46B | 61.07B | 56.35B |
| Stockholders Equity | 6.31B | 6.22B | 6.05B | 5.99B | 5.69B | 6.25B |
Cash Flow | ||||||
| Free Cash Flow | -570.22M | -1.55B | -1.38B | -46.07M | 600.75M | 1.60B |
| Operating Cash Flow | -557.70M | -1.53B | -1.33B | 35.16M | 854.87M | 1.97B |
| Investing Cash Flow | 50.15M | 75.21M | -25.14M | -512.00K | -165.09M | -214.35M |
| Financing Cash Flow | -435.02M | -75.56M | -601.82M | 140.23M | -360.97M | -434.60M |
Hebei Construction Group Co. Ltd. Class H Technical Analysis
Negative
0.38
Price Trends
0.41
Negative
0.45
Negative
0.45
Negative
Market Momentum
>-0.01
Negative
22.86
Positive
44.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1727, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.38, below the 50-day MA of 0.41, and below the 200-day MA of 0.45, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 22.86 is Positive, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1727.
Hebei Construction Group Co. Ltd. Class H Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | HK$1.36B | 5.74 | 14.15% | 9.09% | 26.57% | -2.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | HK$678.13M | 4.24 | 2.36% | ― | -25.78% | -18.64% | |
60 Neutral | HK$1.13B | 17.54 | 5.28% | 13.24% | 11.24% | 64.66% | |
48 Neutral | HK$421.60M | -45.03 | -5.65% | 5.26% | -55.42% | -281.93% | |
46 Neutral | HK$105.84M | -6.85 | -9.58% | ― | 3.97% | 14.02% | |
45 Neutral | HK$792.24M | 15.52 | 2.28% | 1.93% | 0.97% | ― |
* Industrials Sector Average
HK:1727
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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.