Million Cities Holdings Ltd. (2892) AI Stock Analysis

• Market Cap: HK$300.00M
• Dividend Yield: N/A
• Average Volume (3M): 333.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.24
• Revenue Growth: -83.01%
• EPS Growth: 76.32%
• Country: HK
• Employees: 41
• Sector: Real Estate
• Sector Strength: 48
• Industry: Real Estate - Development
• EPS (TTM): -0.07
• Shares Outstanding: 750,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 333
• 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: 25.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: HK$0.50 ▲(25.00% Upside)

The overall stock score is heavily influenced by the company's poor financial performance, characterized by declining revenues and negative profitability. Technical analysis suggests weak momentum, and the negative P/E ratio highlights valuation concerns. The absence of earnings call data and notable corporate events means these factors did not contribute to the score.

Million Cities Holdings Ltd. Business Overview & Revenue Model

Company Description

Million Cities Holdings Ltd. (2892) is a diversified investment holding company based in Hong Kong, primarily engaged in the development and management of properties, with a focus on real estate investments and projects in various sectors including residential, commercial, and industrial properties. The company seeks to capitalize on the growing demand for quality real estate in urban areas, leveraging its expertise in property development and asset management to enhance shareholder value.

How the Company Makes Money

Million Cities Holdings Ltd. generates revenue primarily through its real estate development and property management activities. The company earns income by developing residential and commercial properties, selling or leasing these assets to generate cash flow. Key revenue streams include sales of completed units, rental income from leasing properties, and management fees from overseeing real estate assets. Additionally, the company may engage in joint ventures or partnerships with other developers or investors to expand its project portfolio and enhance profitability. Market conditions, property demand, and strategic partnerships play significant roles in influencing the company’s earnings.

Million Cities Holdings Ltd. Financial Statement Overview

Summary

Million Cities Holdings Ltd. faces severe financial challenges with a dramatic decline in revenue, negative profit margins, and worsening cash flows. The company’s low debt levels reduce leverage risk, but declining equity and asset values raise concerns about financial health and sustainability.

Income Statement

The company has experienced a significant decline in revenue from 2023 to 2024, with total revenue dropping from 641.63 million to 99.71 million. The gross profit margin is negative, indicating cost of goods sold exceeds revenue. Net profit margin is also negative, reflecting ongoing losses, with net income significantly negative at -113.82 million in 2024. Both EBIT and EBITDA margins have deteriorated further from 2023, showing negative values, which highlights operational challenges and inefficiency.

Balance Sheet

The company has a low debt-to-equity ratio due to minimal total debt, which suggests low leverage risk. However, stockholders' equity has decreased from 2023, indicating erosion in the company's net worth. The equity ratio remains relatively stable, but overall asset base has decreased, potentially limiting growth opportunities. The negative net debt position indicates strong liquidity, but this is overshadowed by declining equity and asset values.

Cash Flow

Free cash flow has turned negative in 2024 from a positive position in 2023, indicating cash outflows exceeding inflows. Operating cash flow to net income ratio is negative, suggesting poor cash generation relative to net income losses. Despite the reduction in capital expenditures, cash reserves have decreased significantly, reducing financial flexibility. Overall cash flow stability is compromised, impacting the company’s ability to support operations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	99.71M	641.63M	571.18M	1.35B	1.24B
Gross Profit	-17.13M	-164.50M	275.09M	313.38M	551.24M
EBITDA	-120.01M	-512.66M	181.90M	208.18M	480.87M
Net Income	-113.82M	-482.28M	114.44M	166.38M	231.86M
Balance Sheet
Total Assets	1.44B	1.67B	2.75B	3.04B	3.40B
Cash, Cash Equivalents and Short-Term Investments	268.45M	364.16M	205.56M	406.47M	366.31M
Total Debt	685.00K	28.00K	158.61M	323.17M	369.67M
Total Liabilities	739.65M	822.50M	1.29B	1.68B	2.23B
Stockholders Equity	570.70M	685.42M	1.17B	1.09B	928.90M
Cash Flow
Free Cash Flow	-75.39M	367.99M	7.04M	102.45M	-251.99M
Operating Cash Flow	-74.45M	369.89M	9.63M	106.84M	-247.34M
Investing Cash Flow	-61.80M	28.43M	-11.46M	-32.43M	-250.44M
Financing Cash Flow	39.19M	-241.29M	-169.85M	-65.66M	137.07M

Million Cities Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2892, the sentiment is Positive. The current price of 0.4 is above the 20-day moving average (MA) of 0.39, above the 50-day MA of 0.38, and above the 200-day MA of 0.28, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 77.00 is Negative, neither overbought nor oversold. The STOCH value of 64.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2892.

Million Cities Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0216	55 Neutral	HK$330.82M	―	-7.70%	―	-6.84%	-746.07%
Sector *	53 Neutral	$1.23B	2.72	-2.60%	5.66%	-2.15%	-149.23%
0298	51 Neutral	HK$314.50M	―	-12.76%	―	-22.13%	-23.21%
2231	45 Neutral	HK$378.62M	―	-757.46%	―	550.30%	81.37%
2892	41 Neutral	HK$300.00M	―	-18.12%	―	-83.01%	76.32%
3301	41 Neutral	HK$336.69M	―	-465.56%	―	-33.54%	-100.40%

Million Cities Holdings Ltd. Corporate Events

Million Cities Holdings Announces Auditor Change

Million Cities Holdings Limited, a company listed on the Stock Exchange of Hong Kong, has announced a change in its auditor. KPMG has resigned due to an inability to agree on the audit fee for the financial year ending December 31, 2025. The company has appointed BDO Limited as the new auditor, effective August 4, 2025. The board and audit committee believe BDO is well-qualified and that the transition will not materially affect the preparation of the company’s financial statements. This change is seen as beneficial for the company and its shareholders.

Million Cities Holdings Announces Major Acquisition and Disposal

Million Cities Holdings Limited has announced a major and connected transaction involving the acquisition of Fortune Radiant City Limited and the disposal of Fortune Brilliant City Limited. On July 18, 2025, MC Development, a subsidiary of the company, entered into agreements with Ms. Teresa Wong to acquire a 25.3% stake in Fortune Radiant City Limited for HK$151,038,000, and to subscribe to additional shares, increasing its interest to 37.7%. This transaction will result in the company recognizing Fortune Radiant City Limited as an associate in its financial statements, impacting its financial reporting and market positioning.

Million Cities Holdings Ltd. Enhances Governance with New Nomination Committee

Million Cities Holdings Ltd. has established a Nomination Committee to enhance its governance structure. The committee, formed by a board resolution, consists of at least three directors, with a focus on diversity and independence, as it includes members of different genders and independent non-executive directors. This move is expected to strengthen the company’s governance and align with best practices, potentially impacting its operational efficiency and stakeholder confidence.

Million Cities Holdings Announces Lapse of Major Transaction

Million Cities Holdings Limited announced the lapse of a major and connected transaction involving a deemed disposal through subscription, as parties failed to agree on the treatment of outstanding account balances. The company stated that this lapse will not materially affect its existing business, operations, or financial position.

Million Cities Holdings Announces Unanimous Approval of AGM Resolutions

Million Cities Holdings Limited, a company incorporated in the Cayman Islands, held its Annual General Meeting (AGM) on June 16, 2025. During the AGM, all proposed ordinary resolutions were unanimously approved by the shareholders. These resolutions included the re-election of several directors, authorization for the board to fix directors’ remuneration, reappointment of KPMG as auditors, and granting of general mandates to issue and repurchase shares. The unanimous support for these resolutions reflects strong shareholder confidence in the company’s governance and strategic direction.