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

• Market Cap: HK$775.01M
• Dividend Yield: N/A
• Average Volume (3M): 102.62K
• Price to Earnings (P/E): 4.2
• Beta (1Y): 0.91
• Revenue Growth: -26.45%
• EPS Growth: -3.13%
• Country: HK
• Employees: 6,940
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 461,383,480
• 10 Day Avg. Volume: 102,300
• 30 Day Avg. Volume: 102,616
• PEG Ratio: -0.02
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -29.71
• 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: 68 Neutral
• Price Target: HK$0.50 ▲(13.64%Upside)

The overall stock score is driven primarily by financial performance challenges, including declining revenue and profitability, along with liquidity concerns due to negative cash flow. However, technical analysis indicates short-term bullish momentum, while valuation suggests the stock is undervalued. The absence of significant earnings call data or corporate events means the score is heavily reliant on financial and technical analysis.

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 Co. Ltd. generates revenue primarily through its construction and engineering services. The company undertakes large-scale infrastructure projects such as highways, bridges, and public facilities, which are often funded by government contracts. Additionally, the company is involved in real estate development, earning income from the sale or lease of residential and commercial properties. Hebei Construction Group also engages in project management services, providing expertise and oversight for various construction projects. The company's earnings are further supported by strategic partnerships with local and international firms, enabling it to expand its market reach and project portfolio.

Hebei Construction Group Co. Ltd. Class H Financial Statement Overview

Summary

Hebei Construction Group Co. Ltd. faces declining revenue and profitability margins, increased leverage, and low equity financing. Cash flow generation is a concern with negative free cash flow, indicating potential liquidity issues. Despite these challenges, there is modest gross profitability and equity position, suggesting opportunities for improvement.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
25.06B	33.49B	40.01B	47.83B	40.15B
	Gross Profit
1.37B	1.80B	1.63B	2.49B	2.14B
	EBIT
204.29M	229.01M	757.31M	-155.00M	1.19B
	EBITDA
668.88M	652.58M	819.82M	-93.16M	1.27B
	Net Income Common Stockholders
170.71M	171.40M	326.73M	-345.98M	759.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.77B	7.70B	9.13B	8.81B	8.45B
	Total Assets
61.84B	64.89B	67.63B	66.95B	62.79B
	Total Debt
6.07B	5.33B	5.11B	4.00B	4.25B
	Net Debt
322.31M	-2.36B	-4.01B	-4.81B	-4.20B
	Total Liabilities
55.45B	58.66B	61.46B	61.07B	56.35B
	Stockholders Equity
6.22B	6.05B	5.99B	5.69B	6.25B
Cash Flow		Free Cash Flow
-1.55B	-1.38B	-46.07M	600.75M	1.60B
	Operating Cash Flow
-1.53B	-1.33B	35.16M	854.87M	1.97B
	Investing Cash Flow
75.21M	-25.14M	-512.00K	-165.09M	-214.35M
	Financing Cash Flow
-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: 0.44
• 50DMA: Positive
• 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:1727, the sentiment is Negative. The current price of 0.44 is below the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.43, and below the 200-day MA of 0.53, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.28 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: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$1.28B	5.28	15.68%	7.81%	5.06%	30.15%
1727	68 Neutral	HK$775.01M	4.19	2.79%	―	-26.45%	-3.13%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
0687	64 Neutral	HK$814.58M	20.00	3.23%	162.18%	-11.11%	―
0711	56 Neutral	HK$797.56M	―	-11.14%	5.07%	20.89%	-296.52%
1707	51 Neutral	HK$181.44M	―	-9.34%	―	-40.18%	3.09%
1780	44 Neutral	HK$644.80M	125.30	2.97%	―	-28.42%	―

Hebei Construction Group Co. Ltd. Class H Corporate Events

Hebei Construction Group Announces 2024 AGM with Key Resolutions

Hebei Construction Group Co. Ltd. has announced its 2024 Annual General Meeting scheduled for June 30, 2025, where key resolutions such as the 2024 annual and financial reports, profit distribution proposal, and remuneration for directors and supervisors will be discussed. The meeting will also address significant strategic decisions, including a financing plan and guarantee arrangement for 2025, issuance of debt financing instruments, and amendments to the company’s articles of association, indicating a focus on financial restructuring and governance improvements.

Hebei Construction Group Announces 2025 H Shareholders Class Meeting

Hebei Construction Group Co. Ltd. has announced the 2025 first H Shareholders Class Meeting, scheduled for June 30, 2025, in Baoding City, Hebei Province. The meeting will address significant resolutions, including the abolition of the Board of Supervisors and amendments to the Articles of Association and the Rules of Procedures for General Meetings. These proposed changes could impact the company’s governance structure and operational procedures, potentially affecting its strategic direction and stakeholder engagement.

Hebei Construction Group Proposes Governance Restructuring

Hebei Construction Group Co. Ltd. has announced a significant restructuring, proposing the abolition of its Board of Supervisors and amendments to its Articles of Association and relevant procedural rules. This move, aligned with revised Chinese corporate laws, aims to streamline the company’s governance structure, potentially impacting its operational efficiency and stakeholder engagement.

Hebei Construction Group Renews Key Framework Agreements for 2026-2027

Hebei Construction Group Co. Ltd. has announced the renewal of several key framework agreements, including the Labor Subcontract, Property Leasing, Leased Property, Goods Procurement, and Property Services Framework Agreements, for the years 2026 and 2027. These renewals, involving partners such as Baoding Tianli and Zhongming Zhiye, aim to ensure continuity in their connected transactions and set new annual caps, potentially stabilizing operations and reinforcing market positioning.

Hebei Construction Group Reports 2024 Financial Results

Hebei Construction Group Co. Ltd. announced its annual results for the year ending December 31, 2024, revealing a revenue of RMB25,059 million, which marks a 25% decrease from the previous year. Despite the drop in revenue, the company’s net profits increased by 1% to RMB159 million, while earnings per share remained stable at RMB0.10, indicating a resilient financial performance amidst challenging market conditions.

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 its corporate governance structure. This committee is tasked with identifying and recommending candidates for the company’s board and senior management positions, ensuring the alignment of the board’s composition with the company’s strategic goals. The committee will also review the board’s structure and qualifications annually to support the company’s development strategy.