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

• Market Cap: HK$792.62M
• Dividend Yield: N/A
• Average Volume (3M): 155.91K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.99
• Revenue Growth: -25.79%
• 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

• Rating: 63 Neutral
• Price Target: HK$0.50 ▲(19.05% Upside)

The overall stock score of 63 reflects significant financial challenges, including declining revenue and profitability, and negative cash flow. Technical indicators also suggest bearish momentum. However, the stock's low P/E ratio indicates potential undervaluation, which could attract value investors. The absence of earnings call data and corporate events limits further insights.

Hebei Construction Group Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Hebei Construction Group Co. Ltd. Class H (1727) is a leading construction company based in China, primarily engaged in the provision of construction contracting services. The company operates across various sectors including residential, commercial, and infrastructure projects, offering a wide range of services such as building construction, municipal engineering, and public utility projects. With extensive expertise and a strong reputation, Hebei Construction Group is a major player in the construction industry in China.

How the Company Makes Money

Hebei Construction Group Co. Ltd. makes money through its comprehensive construction contracting services. The company's primary revenue streams include fees and contracts from building construction projects, municipal engineering, and public utility projects. It serves both public and private sector clients, leveraging longstanding relationships and a robust portfolio to secure large-scale projects. Additionally, strategic partnerships and collaborations within the construction and engineering sectors contribute to its revenue, as well as its ability to manage costs and optimize operational efficiencies.

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: Positive

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 below the 20-day moving average (MA) of 0.45, below the 50-day MA of 0.48, and below the 200-day MA of 0.48, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 34.30 is Neutral, neither overbought nor oversold. The STOCH value of 20.00 is Positive, 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	―	HK$1.46B	6.39	13.63%	8.22%	44.58%	11.62%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1727	―	HK$792.62M	4.96	2.36%	―	-25.79%	-18.64%
0687	―	HK$1.09B	17.02	5.28%	13.64%	11.24%	64.66%
0711	―	HK$822.23M	-2.88	-11.69%	―	3.14%	-480.05%
1780	―	HK$1.01B	132.53	-5.43%	2.50%	-61.56%	-2.67%
1707	―	HK$92.40M	―	-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.