Horizon Construction Development Limited (9930) AI Stock Analysis

• Market Cap: HK$4.44B
• Dividend Yield: 6.83%
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.20
• Revenue Growth: 7.48%
• EPS Growth: -32.35%
• Country: HK
• Employees: 4,929
• Sector: Industrials
• Sector Strength: 80
• Industry: Rental & Leasing Services
• EPS (TTM): 0.01
• Shares Outstanding: 3,197,244,000
• 10 Day Avg. Volume: 2,027,999
• 30 Day Avg. Volume: 3,173,896
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$1.65
• Price Target Upside: 18.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 80 Outperform
• Price Target: HK$1.50 ▲(7.91% Upside)

Horizon Construction Development Limited's strong valuation metrics, including a low P/E ratio and high dividend yield, are the most significant factors contributing to its score. The company's financial performance is solid, with robust revenue growth and profitability, though high leverage and negative free cash flow pose risks. Technical indicators suggest positive momentum, further supporting the stock's attractiveness.

Positive Factors

Market Position

Largest equipment lessor in China with room for consolidation, benefiting leading players like Horizon Construction Development.

Overseas Business Expansion

Enhanced disclosure on overseas business is a bright spot, with expectations for revenue to triple and contribute significant profit in future years.

Negative Factors

Construction Demand

Slower-than-expected recovery in China’s construction demand and a fall in rentals due to fierce competition.

Profitability Challenges

Profit down 7%, gross profit margin lower than expected due to average selling price decline and higher sea freight cost.

Horizon Construction Development Limited Business Overview & Revenue Model

Company Description

Horizon Construction Development Limited (9930) is a company engaged in the construction and property development sectors. The company focuses on providing comprehensive construction services, including building residential, commercial, and industrial properties. Additionally, Horizon Construction participates in real estate development projects, leveraging its expertise to manage and execute large-scale construction endeavors from inception to completion.

How the Company Makes Money

Horizon Construction Development Limited makes money primarily through its construction services and property development projects. The company generates revenue by undertaking construction contracts for various types of buildings, such as residential complexes, commercial centers, and industrial facilities. These contracts can be either fixed-price or cost-plus, depending on the nature of the project and client agreements. Additionally, Horizon Construction earns income from its real estate development activities by acquiring, developing, and selling or leasing properties. The company may also form strategic partnerships or joint ventures to co-develop projects, sharing both risks and profits. Other factors contributing to its earnings include efficient project management, cost control measures, and maintaining a strong reputation in the construction industry.

Horizon Construction Development Limited Financial Statement Overview

Summary

Horizon Construction Development Limited shows strong revenue growth and stable profitability, supported by effective EBIT and EBITDA margins. Despite high leverage, the company has improved its Return on Equity. However, challenges remain in managing capital expenditures and generating positive free cash flow, which could impact long-term financial flexibility.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.58B	9.61B	7.88B	6.14B	3.66B
Gross Profit	3.77B	3.76B	3.13B	2.85B	1.65B
EBITDA	4.65B	4.50B	4.09B	3.21B	1.90B
Net Income	896.32M	962.41M	664.34M	709.64M	448.37M
Balance Sheet
Total Assets	36.43B	31.24B	30.29B	26.96B	15.64B
Cash, Cash Equivalents and Short-Term Investments	1.78B	2.17B	2.16B	657.04M	165.83M
Total Debt	21.57B	18.07B	21.44B	18.03B	8.73B
Total Liabilities	24.98B	20.46B	23.62B	20.95B	10.34B
Stockholders Equity	12.19B	11.87B	6.67B	6.01B	6.29B
Cash Flow
Free Cash Flow	-3.32B	1.52B	-1.01B	-8.30B	-5.88B
Operating Cash Flow	4.20B	3.95B	2.82B	2.45B	1.03B
Investing Cash Flow	-6.76B	-1.83B	-3.46B	-10.47B	-6.69B
Financing Cash Flow	2.14B	-2.11B	2.29B	8.37B	5.81B

Horizon Construction Development Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.39
• 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:9930, the sentiment is Positive. The current price of 1.39 is above the 20-day moving average (MA) of 1.27, above the 50-day MA of 1.21, and above the 200-day MA of 1.23, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 67.89 is Neutral, neither overbought nor oversold. The STOCH value of 69.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	81 Outperform	HK$85.91M	2.51	12.46%	―	25.43%	53.36%
9930	80 Outperform	HK$4.44B	6.12	5.93%	6.83%	7.48%	-32.35%
Sector *	64 Neutral	$10.92B	16.41	7.42%	2.02%	2.59%	-16.33%
1341	45 Neutral	HK$1.85B	―	-19.11%	―	-16.18%	59.05%

Horizon Construction Development Limited Corporate Events

Horizon Construction Development Limited Releases 2025 Interim Results

Horizon Construction Development Limited announced its unaudited interim results for the six months ending June 30, 2025. The announcement complies with the listing rules of the Hong Kong Stock Exchange, providing stakeholders with the company’s financial performance compared to the same period in 2024.

The most recent analyst rating on (HK:9930) stock is a Buy with a HK$2.20 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 Issues Profit Warning Amid Market Challenges

Horizon Construction Development Limited has issued a profit warning, anticipating a 10% decrease in total revenue and an 80%-90% drop in profit for the first half of 2025 compared to the same period in 2024. The decline is attributed to falling equipment rental prices in China, asset disposals, and a strategic contraction in its material business. Despite growth in its overseas segment, it has not yet offset domestic market challenges.

The most recent analyst rating on (HK:9930) stock is a Buy with a HK$3.70 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 Limited Updates Company Logo

Horizon Construction Development Limited has announced a change in its company logo, effective from June 23, 2025. This change will be reflected in all corporate documents and the company’s website. The update will not impact the rights of existing shareholders, as current share certificates will remain valid for all purposes, and there will be no need for shareholders to exchange them for new ones.

The most recent analyst rating on (HK:9930) stock is a Buy with a HK$3.60 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 Schedules Board Meeting for Interim Results

Horizon Construction Development Limited has announced a board meeting scheduled for July 31, 2025, to discuss and approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and potential shareholder returns.

The most recent analyst rating on (HK:9930) stock is a Buy with a HK$3.60 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 Completes Major Acquisition to Bolster Market Position

Horizon Construction Development Limited has successfully completed the acquisition of 80% equity interests in the Target Group Companies, following the fulfillment of all conditions precedent to the Share Purchase Agreement. The acquisition, valued at approximately MYR170,951,092, was finalized after negotiations and adjustments based on the Target Company’s strong market position and growth prospects. This strategic move is expected to enhance Horizon’s service offerings in machinery rental, trading, repair, and maintenance, positioning the company for further growth in the industry.

The most recent analyst rating on (HK:9930) stock is a Buy with a HK$3.60 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 Enters Strategic Agreement with Far East Horizon

Horizon Construction Development Limited has entered into a Cooperation Framework Agreement with Far East Horizon, effective from May 8, 2025, to December 31, 2027. Under this agreement, Horizon will offer engineering, technical, and equipment lease services to Far East Horizon Connected Persons, while receiving advisory services in return. This agreement is categorized as a continuing connected transaction under the Hong Kong Listing Rules, requiring reporting and annual review but exempt from independent shareholders’ approval. The collaboration is expected to enhance Horizon’s operational capabilities and market positioning by leveraging Far East Horizon’s advisory services.

Horizon Construction Development Limited Announces Strategic Acquisition and Shareholder Agreement

Horizon Construction Development Limited has announced a significant acquisition, where its wholly-owned subsidiary has entered into a Share Purchase Agreement to acquire equity interests in target group companies for MYR176,000,000. This acquisition will result in the target companies becoming subsidiaries of Horizon Construction Development Limited. Additionally, a Shareholders’ Agreement with Mr. Chan, the remaining shareholder of the target company, includes provisions for call and put options, allowing for future purchase of option shares. The transactions are classified as discloseable under the Listing Rules, requiring announcement and reporting but not shareholder approval.