Zhixin Group Holding Limited (2187) AI Stock Analysis

• Market Cap: HK$317.90M
• Dividend Yield: N/A
• Average Volume (3M): 264.73K
• Price to Earnings (P/E): 533.3
• Beta (1Y): 1.07
• Revenue Growth: 11.25%
• EPS Growth: -813.07%
• Country: HK
• Employees: 442
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Construction Materials
• EPS (TTM): -0.11
• Shares Outstanding: 748,000,000
• 10 Day Avg. Volume: 480,400
• 30 Day Avg. Volume: 264,733
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: 19.05% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: HK$0.50 ▲(19.05% Upside)

The overall score reflects significant financial performance challenges, with weak profitability and declining revenue growth as primary concerns. Technical indicators suggest a lack of strong momentum, and the negative P/E ratio highlights valuation issues. Improvements in cash flow offer some optimism, but the company's operational inefficiencies must be addressed to improve investor confidence.

Zhixin Group Holding Limited Business Overview & Revenue Model

Company Description

Zhixin Group Holding Limited, an investment holding company, manufactures and supplies concrete-based building materials in the People's Republic of China. Its products include ready-mixed concrete and precast concrete components. The company also provides solid waste processing and sales of eco-friendly construction materials. In addition, it offers logistics services, recycles iron ore tailings, and manufactures bricks. The company serves construction companies for various building and construction projects, including infrastructure, residential, commercial, industrial, and municipal. Zhixin Group Holding Limited was incorporated in 2018 and is headquartered in Xiamen, China.

How the Company Makes Money

Zhixin Group generates revenue primarily through leasing and sales of its real estate properties. The company earns rental income from its extensive property portfolio, which includes both residential and commercial spaces. Additionally, revenue is derived from property management services, where it provides operational and maintenance support for various properties. The company may also engage in property development projects, generating income through the sale of completed units. Significant partnerships with other real estate developers and investors further enhance its revenue streams, allowing for joint ventures and co-investment opportunities that can lead to profitable projects.

Zhixin Group Holding Limited Financial Statement Overview

Summary

Zhixin Group Holding Limited is facing significant financial challenges. The income statement shows declining revenues and profitability with net losses. The balance sheet indicates increased leverage and financial instability, while cash flow issues are evident 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: 0.42
• 50DMA: Negative
• 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 0.42 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.48, and below the 200-day MA of 0.53, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 33.18 is Neutral, neither overbought nor oversold. The STOCH value of 31.26 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
0695	56 Neutral	HK$2.30B	―	-9.39%	―	-27.23%	-60.42%
2187	52 Neutral	HK$317.90M	533.33	-18.11%	―	11.25%	-813.07%
Sector *	44 Neutral	C$925.05M	-8.84	-0.23%	2.68%	24.67%	-41.39%
T18	―	€106.24M	2.70	1.77%	―	―	―
6193	51 Neutral	HK$78.40M	―	-5.48%	―	-25.86%	36.92%
1847	49 Neutral	HK$96.40M	―	-9.48%	―	-50.95%	-223.78%
1943	48 Neutral	HK$495.00M	―	-68.68%	―	-61.70%	-210.33%

Zhixin Group Holding Limited Corporate Events

Zhixin Group Announces Board Meeting for Interim Results and Dividend Consideration

Zhixin Group Holding Limited has announced a board meeting scheduled for August 29, 2025. The meeting will focus on approving the interim results for the first half of 2025 and discussing the potential recommendation for an interim dividend. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting investor confidence and market positioning.

Zhixin Group Anticipates Significant Loss for H1 2025

Zhixin Group Holding Limited has issued a profit warning, anticipating a net loss of approximately RMB50.0 million for the first half of 2025, compared to a net profit of RMB1.2 million in the same period of 2024. This loss is primarily due to underperformance in its ready-made and precast concrete businesses, although partially offset by profits from its iron ore tailings recycling and eco-friendly bricks sectors. The results are preliminary and subject to further review, with final figures expected by the end of August 2025.

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.