Hebei Construction Group Co. Ltd. Class H (1727) AI Stock Analysis

• Market Cap: HK$748.59M
• Dividend Yield: N/A
• Average Volume (3M): 155.91K
• Price to Earnings (P/E): 4.7
• Beta (1Y): 0.99
• Revenue Growth: -25.78%
• EPS Growth: -18.64%
• Country: HK
• Employees: 6,940
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 461,383,480
• 10 Day Avg. Volume: 292,750
• 30 Day Avg. Volume: 155,908
• 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 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: 60 Neutral
• Price Target: HK$0.50 ▲(19.05% 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 Business Overview & Revenue Model

Company Description

Hebei 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 Money

Hebei 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

• Technical Analysis Sentiment: Negative
• Last Price: 0.42
• 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:1727, the sentiment is Negative. The current price of 0.42 is above the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.44, and below the 200-day MA of 0.47, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1627	80 Outperform	HK$1.52B	6.42	13.63%	7.89%	44.58%	11.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1727	60 Neutral	HK$748.59M	4.68	2.36%	―	-25.78%	-18.64%
0687	60 Neutral	HK$1.09B	17.02	5.28%	14.06%	11.24%	64.66%
0711	45 Neutral	HK$794.51M	-2.79	-11.69%	―	0.97%	―
1780	44 Neutral	HK$440.20M	-46.10	-5.43%	5.06%	-61.56%	-2.67%
1707	41 Neutral	HK$52.08M	-3.59	-9.58%	―	3.97%	14.02%

Hebei Construction Group Co. Ltd. Class H Corporate Events

Hebei Construction Group Enhances Governance with New Audit Committee

Hebei Construction Group Co. Ltd. has established an Audit Committee under its board of directors to enhance corporate governance and improve decision-making processes. The committee is tasked with reviewing financial disclosures, supervising audits, and managing risks, thereby strengthening the company’s oversight and accountability mechanisms.

The most recent analyst rating on (HK:1727) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hebei Construction Group Co. Ltd. Class H stock, see the HK:1727 Stock Forecast page.

Hebei Construction Group Reports Decline in Interim Financial Results

Hebei Construction Group Corporation Limited announced its unaudited consolidated interim results for the six months ended 30 June 2025, reporting a significant decrease in financial performance. The company’s revenue dropped by 28% to RMB7,908 million, and net profit fell by 21% to RMB95 million compared to the same period in 2024, indicating challenges in maintaining its market position and profitability.

The most recent analyst rating on (HK:1727) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hebei Construction Group Co. Ltd. Class H stock, see the HK:1727 Stock Forecast page.

Hebei Construction Group Enhances Governance with New Nomination Committee

Hebei Construction Group Co. Ltd. has established a Nomination Committee under its board of directors to enhance corporate governance by regulating the appointment of management personnel and optimizing the board’s composition. This move aims to strengthen the company’s governance structure and ensure effective leadership, which could positively impact its operations and stakeholder confidence.

The most recent analyst rating on (HK:1727) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hebei Construction Group Co. Ltd. Class H stock, see the HK:1727 Stock Forecast page.

Hebei Construction Group Enhances Governance with New Committee

Hebei Construction Group Co. Ltd. has established a Remuneration and Appraisal Committee to enhance its appraisal and remuneration systems for directors and senior management, thereby improving corporate governance. This committee, composed mainly of independent non-executive directors, is tasked with formulating appraisal standards and reviewing remuneration policies, which is expected to strengthen the company’s governance structure and accountability.

The most recent analyst rating on (HK:1727) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hebei Construction Group Co. Ltd. Class H stock, see the HK:1727 Stock Forecast page.

Hebei Construction Group Schedules Board Meeting for Interim Results and Dividend Consideration

Hebei Construction Group Co. Ltd. has announced that its board of directors will convene on August 25, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the recommendation for an interim dividend, which could impact shareholder returns and reflect the company’s financial health.

Hebei Construction Group Elects New Employee Representative Director

Hebei Construction Group Co. Ltd. announced the election of Mr. Tian Wei as the employee representative director for the third session of the Board. Mr. Tian, who has been with the company since 1991, brings extensive experience in construction engineering and management, and his appointment is expected to strengthen the company’s leadership and operational capabilities.