Zhixin Group Holding Limited (2187) AI Stock Analysis

• Market Cap: HK$370.26M
• Dividend Yield: N/A
• Average Volume (3M): 304.93K
• Price to Earnings (P/E): 533.3
• Beta (1Y): 1.16
• Revenue Growth: 11.25%
• EPS Growth: -813.07%
• Country: HK
• Employees: 442
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Construction Materials
• EPS (TTM): -0.11
• Shares Outstanding: 748,000,000
• 10 Day Avg. Volume: 194,000
• 30 Day Avg. Volume: 304,933
• PEG Ratio: <0.01
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.94
• 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: 51 Neutral
• Price Target: HK$0.50 ▲(0.00%Upside)

Zhixin Group Holding Limited is experiencing significant financial difficulties, as evidenced by a low financial performance score. Technical analysis provides some short-term positive signals, but the long-term trend remains bearish. Valuation is concerning, with a negative P/E ratio. The lack of earnings call and corporate events data does not impact the score.

Zhixin Group Holding Limited Business Overview & Revenue Model

Company Description

Zhixin Group Holding Limited (2187) is a company engaged primarily in the business sectors of property development and management. The company's core services include the development of residential, commercial, and industrial properties, with a focus on creating integrated communities that offer comprehensive living and working environments. Additionally, Zhixin Group provides property management services to ensure the upkeep and enhancement of the value of these properties over time.

How the Company Makes Money

Zhixin Group Holding Limited generates revenue primarily through the sale and leasing of its developed properties. The company earns substantial income by selling residential and commercial units within their property developments. Additionally, it generates recurring revenue through rental income from leased properties. The property management services offered by the company also contribute to its earnings by providing maintenance and operational services to property owners and tenants, often under long-term contracts. Strategic partnerships with construction firms, marketing agencies, and financial institutions play a crucial role in facilitating property development and sales, thus enhancing the company's revenue streams.

Zhixin Group Holding Limited Financial Statement Overview

Summary

Zhixin Group Holding Limited is facing financial challenges across all major statements. The income statement shows declining revenues and profitability, while the balance sheet highlights increased leverage and financial instability. Cash flow issues further exacerbate the company's financial health, with inconsistent operating cash flow and negative free cash flow.

Income Statement

The income statement reveals declining revenue and profitability. The gross profit margin has decreased over the years, and the company reported a net loss in the latest year. Revenue growth has been negative, indicating struggles in maintaining top-line growth. EBIT and EBITDA margins have also deteriorated, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a high level of total debt relative to equity, as indicated by the debt-to-equity ratio. The equity ratio has been decreasing, suggesting increased leverage. Return on equity has been weak due to the net losses incurred. Overall, the balance sheet indicates financial instability.

Cash Flow

The cash flow statement reflects a volatile cash flow situation. The company has struggled to generate positive operating cash flow consistently, and free cash flow has been negative in multiple years. The lack of positive cash flow from operations is concerning, especially given the negative free cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	580.37M	512.77M	634.15M	765.09M	784.90M
Gross Profit	80.96M	104.19M	57.42M	104.26M	152.50M
EBITDA	-3.47M	59.81M	35.32M	68.32M	119.95M
Net Income	-75.20M	10.08M	1.25M	20.40M	62.62M
Balance Sheet
Total Assets	1.13B	1.35B	1.39B	1.25B	808.32M
Cash, Cash Equivalents and Short-Term Investments	19.04M	25.87M	17.48M	107.20M	30.48M
Total Debt	368.31M	435.03M	443.60M	337.23M	245.45M
Total Liabilities	754.71M	899.10M	942.03M	807.12M	641.35M
Stockholders Equity	377.95M	453.15M	443.07M	441.82M	166.97M
Cash Flow
Free Cash Flow	99.86M	23.76M	-195.28M	-136.96M	-5.16M
Operating Cash Flow	171.13M	95.19M	-26.84M	-100.73M	11.76M
Investing Cash Flow	-72.49M	-71.90M	-205.28M	-40.74M	-14.80M
Financing Cash Flow	-105.53M	-14.90M	153.70M	218.19M	17.39M

Zhixin Group Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 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:2187, the sentiment is Negative. The current price of 0.5 is above the 20-day moving average (MA) of 0.50, above the 50-day MA of 0.48, and below the 200-day MA of 0.55, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.39 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2187.

Zhixin Group Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	70 Neutral	¥168.32B	10.86	6.37%	3.62%	3.94%	6.25%
2187	51 Neutral	HK$370.26M	533.33	-18.11%	―	11.25%	-813.07%
1847	49 Neutral	HK$54.89M	―	-9.48%	―	-50.95%	-223.78%
1943	48 Neutral	HK$370.00M	―	-55.06%	―	-42.46%	-798.48%
0695	46 Neutral	HK$1.49B	―	-9.39%	―	-27.23%	-60.42%
6193	40 Neutral	HK$84.00M	―	-5.48%	―	-25.86%	36.92%

Zhixin Group Holding Limited Corporate Events

Zhixin Group Enhances Governance with New Nomination Committee

Zhixin Group Holding Limited has established a Nomination Committee as part of its corporate governance structure, in compliance with the Listing Rules of The Stock Exchange of Hong Kong Limited. This committee, formed by the Board of Directors, will oversee the nomination process for directors, ensuring diversity and independence within the board. The establishment of this committee is a strategic move to enhance the company’s governance and align with regulatory requirements, potentially improving investor confidence and stakeholder relations.

Zhixin Group Secures Unanimous Approval at AGM

Zhixin Group Holding Limited announced that all resolutions were passed at its Annual General Meeting held on June 19, 2025. The resolutions included the re-election of directors, authorization of directors’ remuneration, re-appointment of auditors, and granting of general mandates for share issuance and repurchase. This unanimous approval by shareholders reflects strong support for the company’s current management and strategic direction, potentially reinforcing its stability and confidence among stakeholders.

Zhixin Group Holding Limited Announces 2025 Annual General Meeting

Zhixin Group Holding Limited has announced its upcoming annual general meeting to be held on June 19, 2025, in Hong Kong. The agenda includes receiving the audited financial statements for the year ended December 31, 2024, re-electing directors, authorizing director remuneration, and re-appointing PricewaterhouseCoopers as the company’s auditor. Additionally, the meeting will consider a resolution to authorize the directors to allot and issue additional shares, with certain limitations, during a specified period.

Zhixin Group Reports Significant Loss in 2024 Financial Results

Zhixin Group Holding Limited reported its audited financial results for the year ending December 31, 2024. The company experienced a significant decline in profitability, with a net loss of RMB 75,199,000 compared to a profit of RMB 10,078,000 in the previous year. This downturn was attributed to increased costs of sales, administrative expenses, and net impairment losses on financial assets, which outweighed the revenue growth from RMB 512,770,000 to RMB 580,370,000. The results indicate challenges in maintaining operational efficiency and profitability, potentially impacting stakeholders’ confidence.