Zhixin Group Holding Limited (2187) AI Stock Analysis

• Market Cap: HK$493.68M
• Dividend Yield: N/A
• Average Volume (3M): 222.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: 13.16%
• EPS Growth: -20233.33%
• Country: HK
• Employees: 442
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -0.07
• Shares Outstanding: 748,000,000
• 10 Day Avg. Volume: 288,800
• 30 Day Avg. Volume: 222,666
• PEG Ratio: <0.01
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 4.08
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.65 ▲(25.58% Upside)

The score is held back primarily by weak financial performance (declining margins, losses, and negative ROE) and a loss-driven negative P/E, partially offset by improved 2024 cash flow and a strong technical uptrend with positive momentum indicators.

Positive Factors

Improved cash generation

A material improvement in free cash flow and a strong operating-cash-flow-to-net-income ratio provide durable internal funding for development projects and operations. This reduces reliance on external financing, supports capital expenditures and investment activity, and strengthens liquidity cushions over the medium term.

Diversified revenue streams

Operating across development, property management and strategic investments creates multiple, complementary cash flows: development drives episodic sale income, management provides recurring fees, and investments offer upside. This diversification helps smooth revenue cycles and supports resilience through property market swings.

Top-line growth trend

Reported revenue growth of ~13% signals the company is expanding its core business activities. Sustained top-line expansion can improve operational scale, absorb fixed costs, and provide a base to rebuild margins and returns if management maintains disciplined project execution and cost control.

Negative Factors

Deteriorating profitability margins

A steady erosion of gross margin and a shift to a negative net margin indicate persistent cost or pricing pressure and weak project economics. If margins remain depressed, the company will struggle to convert revenue growth into sustainable profits, limiting reinvestment and returns to shareholders over time.

Negative return on equity

A negative ROE means capital employed is destroying shareholder value rather than generating returns. Persisting negative ROE reduces the appeal to equity investors, constrains ability to raise fresh equity on favorable terms, and signals structural issues in project selection, pricing, or cost management.

Balance sheet and leverage concerns

Balance-sheet stability concerns and meaningful leverage limit strategic flexibility. Even with better 2024 cash flow, elevated debt levels increase refinancing and interest-rate risk, constrain funding for new developments, and amplify downside in cyclical downturns, making capital structure remediation a multi-quarter challenge.

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 Holding Limited generates revenue through several key streams. The primary source of income comes from its real estate development activities, where the company profits from the sale and leasing of residential and commercial properties. Additionally, the company earns revenue from property management services, which includes ongoing maintenance and administration of properties owned by the company or third parties. Zhixin Group also engages in strategic investments in technology and financial ventures, which contribute to its earnings through potential equity stakes and dividends. The company may also benefit from partnerships with local governments and other private entities, facilitating projects that can lead to long-term revenue generation.

Zhixin Group Holding Limited Financial Statement Overview

Summary

Zhixin Group Holding Limited faces significant financial challenges, particularly in profitability and revenue growth. The income statement reveals declining margins and losses, while the balance sheet shows increased leverage and negative returns on equity. Despite improvements in cash flow, the company needs to address its operational inefficiencies and stabilize its financial performance to enhance investor confidence.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The gross profit margin decreased from 19.4% in 2020 to 13.9% in 2024, and the net profit margin turned negative in 2024, indicating significant losses. Revenue growth has been inconsistent, with a notable decline in recent years. The EBIT and EBITDA margins have also deteriorated, highlighting operational challenges.

Balance Sheet

The balance sheet reflects a moderate financial position with some stability concerns. The debt-to-equity ratio increased from 1.48 in 2020 to 0.97 in 2024, indicating a higher reliance on debt. The equity ratio has improved slightly, suggesting better asset financing through equity. However, the return on equity has turned negative, reflecting poor profitability.

Cash Flow

The cash flow statement shows some positive aspects, with free cash flow improving significantly in 2024. The operating cash flow to net income ratio is strong, indicating good cash generation relative to net income. However, historical cash flow volatility and negative free cash flow in prior years pose concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	466.13M	580.37M	512.77M	634.15M	765.09M	784.90M
Gross Profit	39.39M	80.96M	104.19M	57.42M	104.26M	152.50M
EBITDA	-30.03M	-3.47M	59.81M	35.32M	68.32M	119.95M
Net Income	-100.90M	-75.20M	10.08M	1.25M	20.40M	62.62M
Balance Sheet
Total Assets	1.13B	1.13B	1.35B	1.39B	1.25B	808.32M
Cash, Cash Equivalents and Short-Term Investments	15.71M	19.04M	25.87M	17.48M	107.20M	30.48M
Total Debt	397.90M	368.31M	435.03M	443.60M	337.23M	245.45M
Total Liabilities	800.96M	754.71M	899.10M	942.03M	807.12M	641.35M
Stockholders Equity	328.89M	377.95M	453.15M	443.07M	441.82M	166.97M
Cash Flow
Free Cash Flow	5.69M	99.86M	23.76M	-195.28M	-136.96M	-5.16M
Operating Cash Flow	62.70M	171.13M	95.19M	-26.84M	-100.73M	11.76M
Investing Cash Flow	-57.06M	-72.49M	-71.90M	-205.28M	-40.74M	-14.80M
Financing Cash Flow	-10.91M	-105.53M	-14.90M	153.70M	218.19M	17.39M

Zhixin Group Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.52 is below the 20-day moving average (MA) of 0.54, above the 50-day MA of 0.49, and above the 200-day MA of 0.46, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 68.91 is Neutral, neither overbought nor oversold. The STOCH value of 50.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
2187	54 Neutral	HK$493.68M	-3.86	-31.95%	―	13.16%	-20233.33%
6193	53 Neutral	HK$112.00M	-225.00	-0.22%	―	28.86%	98.11%
1252	48 Neutral	HK$832.49M	2.36	2.15%	―	0.18%	―
1847	44 Neutral	HK$68.28M	-1.97	-8.97%	―	-11.49%	-128.11%
1943	44 Neutral	HK$597.11M	-11.17	-52.20%	―	-33.38%	37.85%
0695	43 Neutral	HK$4.86B	-158.30	-6.75%	―	-11.16%	41.97%

Zhixin Group Holding Limited Corporate Events

Zhixin Group Holding Limited Announces Change of Auditor Amid Cost Control Measures

Zhixin Group Holding Limited has announced a change in its auditor due to a disagreement over audit remuneration with PricewaterhouseCoopers, which has resigned effective December 17, 2025. The company has appointed Crowe (HK) CPA Limited as the new auditor, citing its competence, independence, and familiarity with applicable financial regulations. The transition is not expected to significantly impact the 2025 annual audit, and the company expressed gratitude to PwC for its services as well as a warm welcome to Crowe.

The most recent analyst rating on (HK:2187) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Zhixin Group Holding Limited stock, see the HK:2187 Stock Forecast page.