Horizon Construction Development Limited (9930) AI Stock Analysis

• Market Cap: HK$3.55B
• Dividend Yield: 8.56%
• Average Volume (3M): 3.64M
• Price to Earnings (P/E): 4.9
• Beta (1Y): 1.28
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$1.50 ▲(35.14% Upside)

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

Revenue Growth

The company's robust revenue growth of 20.54% indicates strong market demand and effective business strategies, supporting long-term expansion.

Profitability

Consistent profitability with strong margins suggests effective cost management and a sustainable competitive position in the market.

Cash Conversion

A strong cash conversion ratio indicates efficient operations and the ability to generate cash from earnings, supporting financial stability.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit flexibility, potentially impacting long-term financial health and investment capacity.

Free Cash Flow Challenges

Negative free cash flow highlights challenges in capital expenditure management, which could strain financial resources and hinder growth.

EPS Decline

A decline in EPS growth suggests potential issues in profitability and efficiency, which could affect investor confidence and future earnings potential.

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: 1.11
• 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 1.11 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.15, and below the 200-day MA of 1.18, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 27.78 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$90.88M	3.64	8.86%	―	-12.78%	-20.50%
9930	71 Outperform	HK$3.55B	4.88	5.93%	8.56%	7.48%	-32.35%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1341	46 Neutral	HK$876.53M	-3.95	-13.83%	―	-42.20%	66.04%

Horizon Construction Development Limited Corporate Events

Horizon Construction Reports Revenue Decline Amid Market Adjustments

Horizon Construction Development Limited reported a decline in total revenue by over 10% year-on-year for the first three quarters of 2025, primarily due to reduced rental prices for aerial work platforms amid domestic market oversupply. Despite this, the overseas segment contributed significantly to the company’s results, accounting for over 15% of total revenue and more than 25% of gross profit. The company maintained a prudent approach to capital expenditures and focused on enhancing asset value across its business networks, resulting in a secure financial position.