Zhongshen Jianye Holding Limited (2503) AI Stock Analysis

• Market Cap: HK$606.47M
• Dividend Yield: N/A
• Average Volume (3M): 8.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.29
• Revenue Growth: -59.50%
• EPS Growth: -139.73%
• Country: HK
• Employees: 237
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.02
• Shares Outstanding: 1,144,283,700
• 10 Day Avg. Volume: 8,671,600
• 30 Day Avg. Volume: 8,273,333
• PEG Ratio: -1.66
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -1.91
• 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: 45 Neutral
• Price Target: HK$0.52 ▲(3.40% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenue, profitability, and severe cash flow issues. Technical analysis shows mixed signals, while valuation metrics are weak due to a negative P/E ratio and lack of dividend yield. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Long-term contracts & aftermarket

Stable long-term contracts and recurring aftermarket services create predictable revenue backbones and customer lock-in. Strategic partnerships and ongoing R&D support product relevance and can sustain order visibility and margins over multiple quarters, reducing revenue volatility.

Improved equity position

An improved equity ratio signals a stronger asset-financing mix, increasing balance-sheet resilience to shocks. With leverage remaining low despite a modest rise, the company retains financial flexibility to support operations or selective investment without immediate reliance on external debt markets.

Diversified operations

A business spanning components, assembly and services provides multiple, semi-independent revenue streams and cross-selling opportunities. This operational breadth can stabilize cash generation across vehicle cycles and support aftermarket margins and customer relationships long term.

Negative Factors

Severe cash flow deterioration

Negative free cash flow and operating cash flow underperformance versus reported earnings indicate weak cash conversion. Persistent cash deficits constrain capex, working capital and creditor confidence, risking supply disruptions or the need for dilutive financing over the medium term.

Sharp revenue decline

A >50% revenue drop reflects material demand or contract losses and reduces operating scale. Sustained top-line contraction impairs fixed-cost absorption, pressures margins, and limits funds for innovation or market expansion, raising structural risk to medium-term competitiveness.

Compressed profitability and margins

Very low gross and near-breakeven net margins erode internal cash generation and weaken returns on capital. Persistent margin compression reduces reinvestment capacity, makes pricing power suspect, and limits ability to fund R&D or service debt without strategic restructuring.

Zhongshen Jianye Holding Limited Business Overview & Revenue Model

Company Description

Zhongshen Jianye Holding Limited operates as a general contracting construction company in the People's Republic of China. The company offers construction engineering work, including structural and engineering work; municipal and public construction work, such as urban and rural public infrastructure construction; foundation engineering work, including earthwork and foundation construction and slope protection work; and specialized contracting work comprising building renovation and decoration works services. It provides internet of things related service and project management service. The company was founded in 2017 and is headquartered in Shenzhen, the People's Republic of China.

How the Company Makes Money

Zhongshen Jianye Holding Limited generates revenue through multiple key streams, primarily from the sale of automotive components and assemblies to vehicle manufacturers and distributors. The company benefits from long-term contracts with major automotive brands, which provide a stable income source. Additionally, Zhongshen Jianye engages in aftermarket services, including maintenance and repair, which further contribute to its earnings. Strategic partnerships with other automotive firms enhance its market presence and lead to collaborative projects that can boost revenue. The company also explores opportunities in emerging markets and invests in research and development to innovate its product offerings, ensuring competitive pricing and quality that attract a diverse customer base.

Zhongshen Jianye Holding Limited Financial Statement Overview

Summary

Zhongshen Jianye Holding Limited faces significant financial challenges, with declining revenue and profitability, increased leverage, and severe cash flow issues. While the balance sheet shows a stable equity position, the overall financial health is concerning due to poor cash flow and reduced profitability. The company needs to focus on improving operational efficiency and cash management to stabilize its financial position.

Income Statement

The company experienced a significant decline in revenue from 2023 to 2024, with a drop of over 50%. Gross profit margin decreased slightly from 5.8% in 2023 to 5.5% in 2024. The net profit margin also fell from 2.1% to 0.3%. EBIT and EBITDA margins are low, indicating challenges in operational efficiency. Overall, the income statement reflects declining revenue and profitability, which is concerning.

Balance Sheet

The debt-to-equity ratio increased from 0.08 in 2023 to 0.12 in 2024, indicating a rise in leverage but still at a manageable level. The equity ratio improved from 22.1% to 28.9%, showing a stronger equity position relative to assets. ROE decreased from 8.5% to 0.4%, reflecting lower profitability. The balance sheet shows a stable equity position but highlights concerns about declining returns.

Cash Flow

The company reported negative free cash flow in 2024, a significant decline from positive free cash flow in 2023. Operating cash flow to net income ratio is negative, indicating cash flow challenges. Free cash flow to net income ratio is also negative, highlighting issues in cash generation. The cash flow statement indicates severe cash flow difficulties, which could impact future operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	572.81M	750.56M	1.53B	1.38B	1.35B	1.33B
Gross Profit	31.51M	41.34M	89.15M	87.75M	81.98M	71.31M
EBITDA	-8.75M	4.48M	52.25M	43.03M	42.41M	21.28M
Net Income	-10.20M	1.94M	31.81M	25.32M	28.08M	13.56M
Balance Sheet
Total Assets	1.59B	1.65B	1.68B	1.69B	1.49B	1.16B
Cash, Cash Equivalents and Short-Term Investments	104.03M	96.65M	147.14M	220.73M	55.14M	43.18M
Total Debt	69.91M	56.66M	30.52M	2.40M	1.61M	1.92M
Total Liabilities	1.08B	1.17B	1.31B	1.33B	1.32B	1.04B
Stockholders Equity	511.40M	475.98M	372.42M	327.06M	167.09M	117.32M
Cash Flow
Free Cash Flow	-70.22M	-161.27M	8.95M	69.57M	-75.64M	-19.95M
Operating Cash Flow	-66.42M	-152.86M	50.91M	70.19M	-75.43M	-18.78M
Investing Cash Flow	-7.74M	-12.69M	-41.91M	-578.00K	-174.00K	6.51M
Financing Cash Flow	69.75M	115.06M	26.01M	24.56M	81.58M	26.62M

Zhongshen Jianye Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2503, the sentiment is Negative. The current price of 0.5 is below the 20-day moving average (MA) of 0.54, below the 50-day MA of 0.62, and below the 200-day MA of 0.84, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 43.32 is Neutral, neither overbought nor oversold. The STOCH value of 45.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2503.

Zhongshen Jianye Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1556	78 Outperform	HK$532.50M	3.98	17.51%	5.71%	17.51%	1.48%
6829	64 Neutral	HK$789.12M	93.20	2.76%	―	22.30%	48.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1727	60 Neutral	HK$642.90M	4.02	2.36%	―	-25.78%	-18.64%
1459	49 Neutral	HK$133.34M	-10.63	-0.68%	7.69%	-33.92%	-94.74%
2503	45 Neutral	HK$606.47M	-30.34	-2.04%	―	-59.50%	-139.73%
1683	41 Neutral	HK$615.86M	-10.92	-8.55%	―	-37.55%	-1727.78%

Zhongshen Jianye Holding Limited Corporate Events

Zhongshen Jianye Completes Major Acquisition and Issues New Shares, Reshaping Shareholding Structure

Zhongshen Jianye Holding Limited has completed a major transaction involving the acquisition of a target company, which is now a direct wholly owned subsidiary, after all conditions under the acquisition agreement were satisfied on 15 January 2026. To settle the consideration, the company issued a total of 402,971,698 new shares at HK$0.53 per share to three vendors, expanding its share capital from 741,312,000 to 1,144,283,698 shares and significantly altering its shareholding structure: the chairman’s vehicle Zhongshen Hengtai Capital’s stake was diluted from 38.33% to 24.83%, public shareholding fell from 52.09% to 33.74%, while the three sellers collectively now hold over 35% of the enlarged share base, reshaping the company’s ownership balance and potentially its governance dynamics.

The most recent analyst rating on (HK:2503) stock is a Sell with a HK$0.61 price target. To see the full list of analyst forecasts on Zhongshen Jianye Holding Limited stock, see the HK:2503 Stock Forecast page.

Zhongshen Jianye Gains Unanimous Shareholder Backing at Extraordinary General Meeting

Zhongshen Jianye Holding Limited announced that all resolutions put to shareholders at its extraordinary general meeting on 9 January 2026 were approved by poll, with no opposing votes cast. Shareholders unanimously backed the agreement under consideration and the granting of a specific mandate, with over 402.7 million shares voted in favour and none against, signalling broad investor support for the board’s proposed actions and governance processes, as all directors attended the meeting either in person or electronically and the poll was overseen by an independent scrutineer.

The most recent analyst rating on (HK:2503) stock is a Hold with a HK$0.64 price target. To see the full list of analyst forecasts on Zhongshen Jianye Holding Limited stock, see the HK:2503 Stock Forecast page.

Zhongshen Jianye Holding Limited Announces EGM for Strategic Acquisition

Zhongshen Jianye Holding Limited has announced an extraordinary general meeting to discuss and potentially approve the acquisition of 100% of the issued shares in Huajian Development Limited. This acquisition involves a sale and purchase agreement with Huajian Investment Limited, Huajian Advisory Limited, and Huajian Technology Limited as sellers. The company also seeks approval for a specific mandate to issue up to 402,971,698 new ordinary shares as consideration for the acquisition, which could significantly impact its market positioning by expanding its operational capabilities.

The most recent analyst rating on (HK:2503) stock is a Hold with a HK$0.64 price target. To see the full list of analyst forecasts on Zhongshen Jianye Holding Limited stock, see the HK:2503 Stock Forecast page.

Zhongshen Jianye Announces Major Acquisition with Share Issuance

Zhongshen Jianye Holding Limited has announced a major transaction involving the acquisition of a target company through the issuance of consideration shares. The acquisition, valued at HK$213,574,999.94, will be completed by issuing shares at HK$0.53 each. This transaction is classified as a major one under the Listing Rules, requiring shareholder approval. A circular with more details will be sent to shareholders by December 31, 2025. The acquisition’s completion is contingent upon fulfilling certain conditions, and there is no guarantee it will proceed.

The most recent analyst rating on (HK:2503) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Zhongshen Jianye Holding Limited stock, see the HK:2503 Stock Forecast page.