Zhixin Group Holding Limited (2187) AI Stock Analysis

• Market Cap: HK$366.52M
• Dividend Yield: N/A
• Average Volume (3M): 222.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: HK$0.50 ▲(8.70% Upside)

The overall stock score of 48 reflects significant financial challenges, with declining profitability and increased leverage being major concerns. Technical analysis indicates potential overbought conditions, which could lead to a price correction. The negative P/E ratio and lack of dividend yield further weigh down the stock's attractiveness. Improvements in cash flow provide a slight positive, but operational inefficiencies need to be addressed to improve investor confidence.

Zhixin Group Holding Limited Business Overview & Revenue Model

Company Description

Zhixin Group Holding Limited (2187) is a diversified investment company based in Hong Kong, focusing primarily on the development and management of real estate properties. The company operates in sectors such as property investment, property management, and development projects, with a portfolio that includes residential, commercial, and mixed-use properties. Zhixin Group aims to capitalize on growth opportunities in the dynamic real estate market and provide quality services to its clients.

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 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: 0.46
• 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 0.46 is above the 20-day moving average (MA) of 0.44, above the 50-day MA of 0.43, and below the 200-day MA of 0.47, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 60.98 is Neutral, neither overbought nor oversold. The STOCH value of 34.03 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%
6193	53 Neutral	HK$81.20M	-169.17	-0.22%	―	28.86%	98.11%
1847	49 Neutral	HK$83.01M	-2.01	-8.97%	―	-11.66%	-128.11%
2187	48 Neutral	HK$366.52M	-2.70	-31.95%	―	13.16%	-20233.33%
1252	48 Neutral	€955.82M	2.62	2.15%	―	0.18%	―
1943	48 Neutral	HK$905.49M	-8.62	-68.68%	―	-61.70%	-210.33%
0695	44 Neutral	HK$2.30B	-71.97	-6.75%	―	-11.16%	41.97%

Zhixin Group Holding Limited Corporate Events

Zhixin Group Announces 2025 Interim Results

Zhixin Group Holding Limited has announced its unaudited interim results for the six months ending June 30, 2025. The announcement complies with the Hong Kong Stock Exchange’s requirements and the full interim report will be available online and in print for shareholders. This release provides stakeholders with insights into the company’s financial performance and governance, potentially impacting investor decisions and market perception.

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.

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.