Zhejiang United Investment Holdings Group Limit ed (8366) AI Stock Analysis

• Market Cap: HK$52.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -7.34%
• EPS Growth: N/A
• Country: HK
• Employees: 73
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,577,200,000
• 10 Day Avg. Volume: 2,992,000
• 30 Day Avg. Volume: 1,028,333
• PEG Ratio: -0.08
• Price to Book (P/B): -1.46
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -14.79
• 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: 44 Neutral
• Price Target: HK$0.04 ▼(-10.00% Downside)

The overall stock score is primarily impacted by the company's weak financial performance, characterized by declining revenue, poor profitability, and high leverage. Technical analysis indicates bearish momentum, though oversold conditions may offer a short-term rebound opportunity. The high P/E ratio suggests overvaluation, further weighing on the stock's attractiveness.

Positive Factors

Lower Market Volatility

A below-market beta suggests the company's equity is less sensitive to market swings, which can support steadier funding costs and planning for multi-year construction projects. Lower volatility aids long-term stakeholder confidence and risk management.

Positive FCF-to-Net-Income Ratio

A positive free cash flow to net income ratio implies some earnings convert to cash after investing, indicating pockets of cash-generative activity. This metric can help with incremental deleveraging or funding projects while restructuring liquidity over months.

Exchange Listing Access

Listing on the HKEX provides ongoing access to public capital markets and a broader investor base, which is a durable strategic advantage for financing large engineering and construction contracts or refinancing elevated leverage during multi-month restructuring.

Negative Factors

Negative Equity / High Leverage

Negative shareholders' equity and effectively inverted leverage signal solvency pressure and materially constrain borrowing capacity. Over months this limits the company's ability to win large contracts, invest in backlog, or absorb project delays without external support.

Weak Revenues and Compression of Margins

Steep revenue decline coupled with razor-thin gross and net margins undermines the core business economics. In engineering & construction, low margins reduce capacity to cover fixed costs and invest in project execution, pressuring sustainable profitability over quarters.

Negative Operating and Free Cash Flows

Persistent negative operating and free cash flows erode liquidity and force reliance on external financing or asset sales. Over a multi-month horizon this restricts capital expenditure, increases refinancing risk, and hampers the ability to fund working capital for contracts.

Zhejiang United Investment Holdings Group Limit ed Business Overview & Revenue Model

Company Description

Zhejiang United Investment Holdings Group Limited, an investment holding company, undertakes slope works, foundation works, and other general building works in Hong Kong. The company provides consultancy services related to the management of projects, as well as develops 5G communication and related services. It serves government departments, such as civil engineering and development department, lands department, and architectural services department; and other statutory bodies, including housing authorities, private corporations, and other entities in the private sector, as well as private sector projects. The company was formerly known as Fraser Holdings Limited and changed its name to Zhejiang United Investment Holdings Group Limited in September 2017. Zhejiang United Investment Holdings Group Limited was incorporated in 2015 and is headquartered in Lai Chi Kok, Hong Kong.

How the Company Makes Money

Zhejiang United Investment Holdings Group Limited generates revenue through multiple streams. The primary source comes from real estate development, where the company invests in, develops, and sells residential and commercial properties. In addition, it earns income through property management services, providing ongoing management and maintenance of its developed properties. The company also engages in infrastructure investments, partnering with government and private entities on projects that enhance public amenities, which can yield returns through operational revenues or government contracts. Furthermore, the group's financial services division contributes to its earnings by offering investment consultancy and asset management services, attracting fees from clients seeking guidance in the investment landscape. Strategic partnerships with local governments and businesses enhance its project pipeline, facilitating additional revenue opportunities.

Zhejiang United Investment Holdings Group Limit ed Financial Statement Overview

Summary

The company is facing significant financial challenges, with declining revenue, weak profitability, high leverage, and negative equity. Cash flow issues further exacerbate the precarious financial state.

Income Statement

The company has experienced a significant decline in revenue growth, with a negative growth rate of -14.42% in the most recent year. Gross profit margins are low at 2.18%, and net profit margins are also minimal at 0.36%. The EBIT margin is negative, indicating operational challenges. Overall, the income statement reflects weak profitability and declining revenue.

Balance Sheet

The balance sheet shows a negative stockholders' equity, resulting in a negative debt-to-equity ratio. This indicates financial instability and high leverage. The return on equity is also negative, reflecting poor returns for shareholders. The equity ratio is not calculable due to negative equity, highlighting significant financial risk.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, with a substantial decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow issues. Despite a positive free cash flow to net income ratio, the overall cash flow situation is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	339.18M	279.93M	302.10M	199.17M	133.31M	110.12M
Gross Profit	6.11M	6.11M	5.76M	3.91M	1.85M	1.46M
EBITDA	1.17M	2.41M	818.00K	-2.08M	-6.65M	-92.78M
Net Income	1.54M	1.01M	-349.00K	-3.08M	-6.76M	-174.48M
Balance Sheet
Total Assets	62.70M	62.70M	64.87M	52.51M	71.36M	50.17M
Cash, Cash Equivalents and Short-Term Investments	36.04M	36.04M	33.83M	1.15M	44.77M	25.18M
Total Debt	16.87M	16.87M	12.57M	8.34M	4.97M	33.96M
Total Liabilities	84.33M	84.33M	87.52M	74.81M	90.58M	62.03M
Stockholders Equity	-21.63M	-21.63M	-22.64M	-22.29M	-19.22M	-11.85M
Cash Flow
Free Cash Flow	-2.13M	-2.13M	4.39M	-3.17M	-7.56M	-4.82M
Operating Cash Flow	-2.13M	-2.13M	5.00M	-3.17M	-7.56M	-4.80M
Investing Cash Flow	76.00K	76.00K	140.00K	0.00	-14.00K	-449.00K
Financing Cash Flow	4.26M	4.26M	27.54M	-40.45M	27.16M	-6.97M

Zhejiang United Investment Holdings Group Limit ed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8366, the sentiment is Negative. The current price of 0.04 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.55 is Neutral, neither overbought nor oversold. The STOCH value of -60.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8366.

Zhejiang United Investment Holdings Group Limit ed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8208	53 Neutral	HK$135.36M	29.84	23.66%	―	11.56%	―
8422	46 Neutral	HK$21.00M	-3.45	-16.34%	―	11.29%	-262.50%
8366	44 Neutral	HK$52.05M	-41.25	―	―	-7.34%	―
8516	41 Neutral	HK$52.94M	-1.66	-126.14%	―	-15.62%	-11.50%
8532	40 Underperform	HK$5.35M	-0.04	-3118.37%	―	-75.80%	-6540.74%