Horizon Construction Development Limited (9930) AI Stock Analysis

• Market Cap: HK$3.20B
• Dividend Yield: 8.56%
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): 4.4
• Beta (1Y): 1.01
• Revenue Growth: 7.48%
• EPS Growth: -32.35%
• Country: HK
• Employees: 4,929
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 0.01
• Shares Outstanding: 3,197,244,000
• 10 Day Avg. Volume: 8,266,846
• 30 Day Avg. Volume: 3,636,192
• PEG Ratio: -0.36
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -1.22
• 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: 71 Outperform
• Price Target: HK$1.00 ▼(-7.41% Downside)

Horizon Construction Development Limited's stock score is primarily driven by its strong valuation metrics, including a low P/E ratio and high dividend yield. Financial performance is solid, with strong revenue growth and profitability, but high leverage and negative free cash flow pose risks. Technical indicators suggest bearish momentum, which tempers the overall score.

Positive Factors

Sustained Revenue Growth

A 20.54% revenue increase signals durable demand and successful project execution across residential, commercial and industrial segments. Sustained top-line growth improves fixed-cost absorption, supports backlog replenishment and funds reinvestment into new developments over the medium term.

Strong Operating Margins

Robust gross, EBIT and EBITDA margins indicate structural cost control and pricing power in construction and development operations. These margins underpin long-term cash-generating capacity, strengthen project economics and provide a buffer against cyclical revenue swings over multiple quarters.

Improving Return on Equity

Rising ROE reflects better efficiency in using shareholder capital and improved project returns. A higher ROE sustained by disciplined project selection can enhance shareholder value, support dividend capacity, and signal improving operational leverage over the medium term.

Negative Factors

High Leverage

A debt-to-equity ratio of 1.77 creates lasting financial fragility: higher interest expense, refinancing risk and limited flexibility to pursue new projects without added funding. In cyclic construction markets, elevated leverage amplifies downside from project delays or cost overruns.

Negative Free Cash Flow

Persistently negative free cash flow despite solid operating conversion means capex or working capital consumes earnings. This structural cash shortfall forces external financing, raises leverage, and limits ability to self-fund growth, delever or sustain shareholder returns long term.

Declining EPS Trend

A sharp negative EPS growth rate signals pressure on reported earnings that may reflect higher financing costs, non-recurring charges or margin compression. Sustained EPS declines reduce retained earnings, impair reinvestment ability and weaken resilience across construction cycles.

Horizon Construction Development Limited Business Overview & Revenue Model

Company Description

Horizon Construction Development Limited operates as an investment holding company that provides equipment operation services in the People's Republic of China. The company also provides operating lease services that cover various types of equipment and materials, including aerial work platforms, neo-excavation support systems, neo-formwork systems, and other equipment. In addition, the company offers engineering and technical services, platforms, and other services comprising the sale of equipment, materials, and spare parts. The company was founded in 2011 and is based in Tianjin, China. Horizon Construction Development Limited operates as a subsidiary of Far East Horizon Limited.

How the Company Makes Money

Horizon Construction Development Limited generates revenue primarily through its construction and development projects. The company earns money by securing contracts for building residential and commercial properties, which may involve both fixed-price and cost-plus agreements. Key revenue streams include project management fees, construction services, and sale or lease of completed properties. Additionally, the company may engage in partnerships with local governments or private entities to undertake large-scale infrastructure projects, further diversifying its income sources. Factors contributing to its earnings include market demand for real estate, effective project execution, and strategic collaborations that enhance its competitive position in the industry.

Horizon Construction Development Limited Financial Statement Overview

Summary

Horizon Construction Development Limited exhibits strong revenue growth and stable profitability with effective EBIT and EBITDA margins. However, high leverage and challenges in capital expenditure management, resulting in negative free cash flow, are concerns.

Income Statement

Horizon Construction Development Limited has demonstrated strong revenue growth with a notable increase from $9.61 billion in 2023 to $11.58 billion in 2024, representing a growth rate of 20.54%. The company maintains a healthy Gross Profit Margin of 32.59% in 2024, albeit slightly declining from 39.16% in 2020. The Net Profit Margin is stable at 7.74%, showing consistent profitability. EBIT and EBITDA margins are also robust at 16.57% and 40.10% respectively, implying effective cost management.

Balance Sheet

The company's balance sheet reflects a high Debt-to-Equity Ratio of 1.77, indicating significant leverage. However, the Return on Equity (ROE) has improved substantially to 7.35% in 2024 from 5.40% in 2020, showcasing better efficiency in equity utilization. The Equity Ratio stands at 33.47%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow statement reveals challenges in free cash flow generation, with a negative Free Cash Flow of -$3.32 billion in 2024. The Operating Cash Flow to Net Income Ratio is strong at 4.69, indicating healthy cash conversion from earnings. However, the Free Cash Flow to Net Income Ratio is negative, highlighting issues in capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.95B	11.58B	9.61B	7.88B	6.14B	3.66B
Gross Profit	3.41B	3.77B	3.76B	3.13B	2.85B	1.65B
EBITDA	4.97B	4.65B	4.50B	4.09B	3.21B	1.90B
Net Income	719.49M	896.32M	962.41M	664.34M	709.64M	448.37M
Balance Sheet
Total Assets	36.58B	36.43B	31.24B	30.29B	26.96B	15.64B
Cash, Cash Equivalents and Short-Term Investments	2.18B	1.78B	2.17B	2.16B	657.04M	165.83M
Total Debt	21.91B	21.57B	18.07B	21.44B	18.03B	8.73B
Total Liabilities	25.25B	24.98B	20.46B	23.62B	20.95B	10.34B
Stockholders Equity	11.33B	11.46B	10.78B	6.67B	6.01B	5.30B
Cash Flow
Free Cash Flow	-128.93M	-3.32B	1.52B	-1.01B	-8.30B	-5.88B
Operating Cash Flow	5.31B	4.20B	3.95B	2.82B	2.45B	1.03B
Investing Cash Flow	-4.90B	-6.76B	-1.83B	-3.46B	-10.47B	-6.69B
Financing Cash Flow	949.38M	2.14B	-2.11B	2.29B	8.37B	5.81B

Horizon Construction Development Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9930, the sentiment is Negative. The current price of 1.08 is above the 20-day moving average (MA) of 1.04, below the 50-day MA of 1.10, and below the 200-day MA of 1.17, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.45 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9930.

Horizon Construction Development Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1581	76 Outperform	HK$89.64M	3.59	8.86%	―	-12.78%	-20.50%
9930	71 Outperform	HK$3.20B	4.40	5.93%	8.56%	7.48%	-32.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1341	48 Neutral	HK$954.20M	-4.30	-13.83%	―	-42.20%	66.04%

Horizon Construction Development Limited Corporate Events

Horizon Construction Issues Profit Warning as Revenue and Margins Slide

Horizon Construction Development Limited has warned that its revenue for 2025 is expected to fall by nearly 20% from the RMB11.58 billion recorded in 2024, with profit attributable to shareholders forecast to plunge by 70%–90% amid a challenging market for equipment operation in Mainland China. The company cites declining rental prices for domestic equipment, a deliberate scaling back of its materials business, and reduced, less profitable sales of material assets due to weaker steel prices as key drivers of the deterioration, signaling mounting margin pressure and operational headwinds that could weigh on shareholder returns and highlight broader softness in China’s construction-related demand.

The most recent analyst rating on (HK:9930) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Horizon Construction Development Limited stock, see the HK:9930 Stock Forecast page.

Horizon Construction Development Sets March Board Meeting for 2025 Final Results and Dividend Decision

Horizon Construction Development Limited, a Cayman Islands-incorporated construction and development group listed in Hong Kong, has announced that its board of directors will convene a meeting on 10 March 2026. At this meeting, the board will consider and approve the group’s audited final results for the financial year ended 31 December 2025 and decide whether to recommend a final dividend, alongside handling other corporate matters, signaling an upcoming disclosure of the company’s annual financial performance and potential shareholder returns.

The most recent analyst rating on (HK:9930) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Horizon Construction Development Limited stock, see the HK:9930 Stock Forecast page.

Horizon Construction Announces Key Leadership Change

Horizon Construction Development Limited has announced a change in its company secretary, authorized representative, and process agent roles. Mr. Chiu Ming King has resigned from these positions due to work arrangements, effective December 9, 2025, and will be succeeded by Ms. Li Yee Ching, who brings a decade of experience in company secretarial services. This transition is expected to maintain the company’s operational stability and compliance with regulatory requirements.

The most recent analyst rating on (HK:9930) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Horizon Construction Development Limited stock, see the HK:9930 Stock Forecast page.

Horizon Construction Enhances Governance with New Lead Director Appointment

Horizon Construction Development Limited has appointed Mr. Liu Jialin as the Lead Independent Non-Executive Director to enhance corporate governance. This change aligns with recent amendments to the Listing Rules and the Corporate Governance Code, aiming to improve board effectiveness and communication with shareholders.

The most recent analyst rating on (HK:9930) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Horizon Construction Development Limited stock, see the HK:9930 Stock Forecast page.

Horizon Construction Announces Board Composition and Governance Structure

Horizon Construction Development Limited, incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles. The board includes a mix of executive, non-executive, and independent non-executive directors, with Mr. KONG Fanxing serving as the Chairman. The company has also established four committees: Audit, Nomination, Remuneration, and Environmental, Social and Governance, each with designated members and chairs. This announcement reflects the company’s structured governance approach, potentially impacting its strategic decision-making and stakeholder engagement.

The most recent analyst rating on (HK:9930) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Horizon Construction Development Limited stock, see the HK:9930 Stock Forecast page.