CITIC Pacific (CTPCY) AI Stock Analysis

• Market Cap: $44.85B
• Dividend Yield: 4.83%
• Average Volume (3M): 4.00
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.39
• Revenue Growth: 2.84%
• EPS Growth: 0.01%
• Country: US
• Employees: 190,763
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): N/A
• Shares Outstanding: 5,818,052,700
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 4
• PEG Ratio: -0.53
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -2.69
• Enterprise Value/Market Cap: 10.39
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 0.86
• Enterprise Value/Ebitda: 1.30
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $8.00 ▲(2.04% Upside)

CITIC Pacific's stock is supported by strong valuation metrics, with a low P/E ratio and high dividend yield. Technical indicators show a positive trend, though momentum is weak. Financial performance is solid but challenged by declining revenue and high leverage, which could impact future stability.

CITIC Pacific Business Overview & Revenue Model

Company Description

CITIC Limited operates in the financial services, resources and energy, manufacturing, engineering contracting, advanced materials, consumption, and urbanization businesses worldwide. The company's Comprehensive Financial Services segment provides banking, trust, insurance and reinsurance, investment banking, wealth and asset management, financial markets, equity investment, financing, and other integrated financial services. Its Advanced Intelligent Manufacturing segment offers wheels and lightweight cast components, and chassis and body systems; and mining and heavy machinery, specialized robots and intelligent equipment, new energy equipment, and special materials. The company's Advanced Materials segment offers special steel products; and high-grade chloride, as well as explores, develops, and produces oil. It also invests in coal and bauxite mining, import and export of commodities, electrolytic aluminum, and alumina smelting; and invests in and manages power plants. The company's New Consumption segment provides telecommunications services; and leases and sells satellite transponders. It also publishes books and digital books, as well as engages in bookstore retailing business. In addition, this segment deals and distributes with supporting services for automotive brands; and develops agricultural science and technology, as well as engages in the brand development, manufacturing, commodity trading, agency distribution, logistics, and retail in the food and fast-moving consumer goods, healthcare, and electrical products industries. The company's New-Type Urbanisation segment provides environmental and infrastructure, contracting and design, healthcare, and general aviation services; and develops and invests in mixed-use and commercial properties, and residential properties. The company was formerly known as CITIC Pacific Limited and changed its name to CITIC Limited in August 2014. The company was founded in 1987 and is based in Central, Hong Kong.

How the Company Makes Money

CITIC Pacific generates revenue through multiple key streams. Its steel business is a major contributor, producing and selling a variety of steel products primarily to construction and manufacturing industries. The company's resources segment, particularly iron ore mining, also plays a crucial role, capitalizing on the demand for raw materials in global markets. Additionally, CITIC Pacific earns income from its property segment through the development and leasing of residential and commercial properties. The infrastructure projects, including investments in transportation and utilities, further diversify its revenue. Strategic partnerships and joint ventures, particularly in resource extraction and infrastructure development, enhance its earnings potential, as they allow for shared risks and access to larger projects. Overall, CITIC Pacific's diversified portfolio helps mitigate risks and stabilize its revenue streams.

CITIC Pacific Financial Statement Overview

Summary

CITIC Pacific shows strong profitability and cash generation with robust margins and free cash flow growth. However, declining revenue and high leverage pose risks to financial stability. The balance sheet's high debt levels and negative operating cash flow ratio are concerning.

Income Statement

CITIC Pacific's income statement shows a mixed performance. The gross profit margin is strong at 48.7% for TTM, indicating efficient cost management. However, the revenue growth rate is negative at -28.6% TTM, reflecting a significant decline in sales. The net profit margin is moderate at 6.8% TTM, and the EBIT margin is robust at 26.5% TTM, suggesting good operational efficiency. Despite these strengths, the declining revenue trend poses a risk.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.38, indicating significant leverage, which could pose financial risks. The return on equity is moderate at 8.1% TTM, showing decent profitability relative to shareholder equity. The equity ratio is low, suggesting a heavy reliance on debt financing. Overall, the balance sheet reflects a stable but leveraged financial position.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate of 245.6% TTM, indicating improved cash generation. The free cash flow to net income ratio is healthy at 1.09 TTM, suggesting efficient conversion of profits into cash. However, the operating cash flow to net income ratio is negative, highlighting potential issues in cash flow from operations. Overall, cash flow management appears strong, but operational cash flow needs attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.01T	949.69B	971.07B	956.21B	905.00B	723.55B
Gross Profit	540.16B	322.38B	312.38B	357.71B	311.41B	276.64B
EBITDA	358.18B	173.34B	363.47B	176.43B	151.51B	128.34B
Net Income	62.17B	58.20B	63.49B	73.53B	70.22B	56.63B
Balance Sheet
Total Assets	13.69T	12.08T	12.49T	11.79T	10.69T	9.74T
Cash, Cash Equivalents and Short-Term Investments	2.39T	1.30T	1.94T	1.79T	365.52B	441.02B
Total Debt	3.25T	2.56T	2.94T	2.35T	1.89T	1.61T
Total Liabilities	12.09T	10.65T	11.02T	10.41T	9.52T	8.73T
Stockholders Equity	837.91B	757.49B	775.17B	737.25B	751.41B	674.28B
Cash Flow
Free Cash Flow	235.06B	-94.37B	-51.92B	170.44B	-65.19B	172.34B
Operating Cash Flow	286.55B	-65.72B	-25.13B	194.02B	-40.69B	193.22B
Investing Cash Flow	-289.83B	-106.17B	-38.28B	55.92B	-267.45B	-256.17B
Financing Cash Flow	69.60B	193.82B	-11.06B	-109.19B	208.16B	36.02B

CITIC Pacific Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTPCY, the sentiment is Positive. The current price of 7.84 is above the 20-day moving average (MA) of 7.37, above the 50-day MA of 7.36, and above the 200-day MA of 6.46, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 66.22 is Neutral, neither overbought nor oversold. The STOCH value of 99.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTPCY.

CITIC Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	―	$127.05B	22.43	35.85%	2.12%	7.48%	9.55%
VMI	―	$8.13B	36.08	14.90%	0.63%	1.23%	-22.77%
CTPCY	―	$44.85B	5.65	7.65%	4.83%	2.84%	0.01%
MMM	―	$88.42B	26.31	73.38%	1.74%	-13.09%	-20.63%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%