Xingda International Holdings (1899) AI Stock Analysis

• Market Cap: HK$2.37B
• Dividend Yield: 10.48%
• Average Volume (3M): 538.95K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.08
• Revenue Growth: 2.03%
• EPS Growth: -48.17%
• Country: HK
• Employees: 7,384
• Sector: Consumer Cyclical
• Sector Strength: 62
• Industry: Auto - Parts
• EPS (TTM): 0.04
• Shares Outstanding: 1,920,125,200
• 10 Day Avg. Volume: 463,900
• 30 Day Avg. Volume: 538,945
• PEG Ratio: -0.19
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.30
• 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: 73 Outperform
• Price Target: HK$1.50 ▲(20.97%Upside)

The stock's overall score is driven by its strong valuation, with a low P/E ratio and high dividend yield, providing potential value to investors. Financial performance indicates stable revenue but highlights the need for improved profitability and cash flow. Technical analysis suggests neutral market momentum with a potential for undervaluation.

Xingda International Holdings Business Overview & Revenue Model

Company Description

Xingda International Holdings Limited, listed on the Hong Kong Stock Exchange under the ticker 1899, is a leading manufacturer in the tire reinforcement materials sector. The company specializes in the production and sale of radial tire cords and bead wires, which are essential components for tire manufacturing. Headquartered in Jiangsu Province, China, Xingda serves a broad range of clients, including major tire manufacturers globally, ensuring the durability and performance of their products.

How the Company Makes Money

Xingda International Holdings generates revenue primarily through the sale of its core products: radial tire cords and bead wires. The company supplies these essential materials to major tire manufacturers, both domestically and internationally. Revenue is mainly driven by long-term contracts with these manufacturers, ensuring a steady demand for their products. Additionally, Xingda may benefit from strategic partnerships and collaborations with tire companies, which help to secure market share and expand its customer base. Factors such as global tire production trends, raw material prices, and technological advancements in tire manufacturing also play a significant role in influencing the company's earnings.

Xingda International Holdings Financial Statement Overview

Summary

Xingda International Holdings demonstrates a stable revenue growth trajectory but faces challenges in profitability and cash flow generation. The company's leverage has increased, posing potential risks. While the company has maintained stable gross margins, its net profitability and operational efficiency have declined. Overall, the financial health is moderately strong but requires attention to profitability and cash flow management.

Income Statement

The company shows a positive revenue growth trend with an increase from $11.49 billion to $11.94 billion in the latest year, indicating a revenue growth rate of 3.9%. Gross profit margin remains stable at approximately 18.4%, while net profit margin decreased to 2.3% from 3.9% the previous year, suggesting pressure on net income. The EBIT margin fell to 3.9% from 7.3%, and the EBITDA margin also declined to 9.1% from 14%, reflecting reduced operating efficiency.

Balance Sheet

The debt-to-equity ratio increased from 1.09 to 1.20, indicating higher leverage and potential risk. Return on Equity (ROE) decreased to 4.2% from 7.4%, reflecting lower profitability. The equity ratio slightly improved to 28.9% from 29.5%, showing a stable financial structure with adequate equity covering the assets.

Cash Flow

Free cash flow turned negative in the latest year, indicating financial strain. The company shows a lack of free cash flow growth, and the operating cash flow to net income ratio is not calculable due to missing data, which raises concerns about cash generation capabilities. The prior year showed a healthy operating cash flow of $1.63 billion against a net income of $449 million.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.94B	11.49B	10.81B	10.65B	7.68B
Gross Profit	2.19B	2.29B	2.34B	2.06B	1.53B
EBITDA	1.09B	1.61B	1.19B	1.05B	844.66M
Net Income	269.05M	449.40M	348.39M	218.85M	115.00M
Balance Sheet
Total Assets	22.38B	20.72B	21.01B	19.80B	15.69B
Cash, Cash Equivalents and Short-Term Investments	2.97B	2.44B	1.12B	1.22B	1.00B
Total Debt	7.79B	6.63B	6.89B	5.55B	3.60B
Total Liabilities	13.70B	12.42B	13.09B	12.19B	8.12B
Stockholders Equity	6.47B	6.10B	5.86B	5.70B	5.66B
Cash Flow
Free Cash Flow	-491.04M	407.95M	-225.35M	-1.59B	-441.86M
Operating Cash Flow	817.59M	1.63B	1.58B	-94.45M	65.26M
Investing Cash Flow	-1.24B	-941.92M	-1.80B	-1.69B	-1.03B
Financing Cash Flow	678.16M	-956.83M	306.39M	1.62B	1.37B

Xingda International Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1899, the sentiment is Neutral. The current price of 1.24 is below the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.20, and above the 200-day MA of 1.22, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.29 is Neutral, neither overbought nor oversold. The STOCH value of 61.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1899.

Xingda International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1571	82 Outperform	HK$4.02B	6.58	16.20%	7.44%	1.42%	-8.76%
1809	79 Outperform	HK$4.83B	3.39	21.97%	8.33%	8.48%	25.41%
1899	73 Outperform	HK$2.37B	8.04	4.28%	10.48%	2.03%	-48.17%
1057	65 Neutral	HK$9.33B	21.99	9.28%	1.22%	46.99%	88.57%
1760	60 Neutral	HK$1.57B	6.93	8.65%	4.20%	13.37%	-35.53%
Sector *	57 Neutral	HK$24.69B	3.68	-2.13%	5.97%	-0.25%	-65.84%
6830	54 Neutral	HK$495.37M	10.89	3.02%	1.07%	-2.00%	7.08%

Xingda International Holdings Corporate Events

Xingda International Clarifies Dongying Rongju’s Status in Capital Reduction Update

Xingda International Holdings Limited announced a supplemental disclosure regarding the capital reduction of Dongying Rongju, clarifying that Dongying Rongju is no longer a connected person at the subsidiary level since March 2021. This update confirms that Dongying Rongju and its ultimate beneficial owners are independent third parties, which may impact the company’s operational dynamics and stakeholder relationships.

Xingda International Announces Capital Reduction in Subsidiary

Xingda International Holdings Limited, through its subsidiary Faith Maple, has entered into capital reduction agreements with several stakeholders, including Chengshan Group, Sailun Group, Triangle Tyre, and Linglong Tire, to reduce the registered capital of a target company by approximately RMB151.62 million. This capital reduction will increase Xingda’s ownership in the target company from 70.32% to 74.25%, while the target company will remain a subsidiary, and its financial results will continue to be consolidated into Xingda’s financial statements. The transaction is classified as a discloseable transaction under the Hong Kong Stock Exchange’s Listing Rules, requiring reporting and announcement due to the applicable percentage ratios.

Xingda International Holdings Announces Successful AGM with All Resolutions Passed

Xingda International Holdings Limited successfully held its Annual General Meeting on June 5, 2025, where all proposed resolutions were passed by shareholders. The resolutions included the adoption of financial statements, re-election of directors, authorization of directors’ remuneration, re-appointment of auditors, and granting of mandates for share allotment and repurchase, reflecting strong shareholder support and strategic alignment.