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Zhong Ao Home Group Limited
(1538)
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Rating:75Outperform
Price Target:
HK$0.90
▲(130.77% Upside)
Action:Reiterated
Date:09/09/26
The score is driven primarily by solid financial stability (very low leverage and improved revenue growth) and attractive valuation (low P/E with a dividend). These positives are tempered by only mixed technical momentum (negative MACD despite prices above moving averages) and cash flow volatility/margin compression that add execution risk.
Positive Factors
Conservative balance sheet
Very low leverage gives Zhong Ao Home Group financial flexibility to maintain operations, invest in property-management capabilities, and withstand weaker conditions without relying heavily on borrowing. Equity growth further strengthens the capital base and supports resilience over the next several quarters.
Negative Factors
Long-term margin compression
Lower net margins than earlier in the cycle indicate that revenue growth has not fully translated into profitability at historical levels. Persistent compression could limit earnings conversion, reduce reinvestment capacity, and make future results more sensitive to operating costs or pricing pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage gives Zhong Ao Home Group financial flexibility to maintain operations, invest in property-management capabilities, and withstand weaker conditions without relying heavily on borrowing. Equity growth further strengthens the capital base and supports resilience over the next several quarters.
Read all positive factors
Zhong Ao Home Group Limited (1538) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$679.37M
Dividend Yield3.14%
Average Volume (3M)818.27K
Price to Earnings (P/E)5.7
Beta (1Y)0.04
Revenue Growth7.28%
EPS Growth15.40%
CountryHK
Employees7,011
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding854,550,000
10 Day Avg. Volume1,038,600
30 Day Avg. Volume818,266
Financial Highlights & Ratios
PEG Ratio0.32
Price to Book (P/B)0.27
Price to Sales (P/S)0.16
P/FCF Ratio2.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Zhong Ao Home Group Limited Business Overview & Revenue Model
Company Description
Zhong Ao Home Group Limited functions as an investment holding company, delivering a broad spectrum of property-related services throughout the People's Republic of China. Its offerings encompass not only standard property management but also a va...
How the Company Makes Money
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Zhong Ao Home Group Limited Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
86
Very Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.84B | 1.78B | 1.71B | 1.70B | 1.87B |
| Gross Profit | 383.85M | 366.81M | 350.56M | 358.23M | 431.86M |
| EBITDA | 205.59M | 168.86M | 161.95M | 161.72M | 209.85M |
| Net Income | 98.19M | 88.90M | 80.05M | 76.91M | 106.28M |
Balance Sheet | |||||
| Total Assets | 2.02B | 1.94B | 2.07B | 1.96B | 2.19B |
| Cash, Cash Equivalents and Short-Term Investments | 631.59M | 545.16M | 534.54M | 453.73M | 450.54M |
| Total Debt | 47.31M | 52.87M | 61.26M | 61.34M | 68.78M |
| Total Liabilities | 839.95M | 842.33M | 1.03B | 970.19M | 1.20B |
| Stockholders Equity | 1.12B | 1.04B | 970.33M | 916.59M | 899.25M |
Cash Flow | |||||
| Free Cash Flow | 115.22M | 34.81M | 96.86M | 63.45M | -14.94M |
| Operating Cash Flow | 136.72M | 58.77M | 124.08M | 83.53M | 33.83M |
| Investing Cash Flow | -13.36M | -7.76M | -311.00K | -68.46M | -42.24M |
| Financing Cash Flow | -38.72M | -36.96M | -40.14M | -4.76M | -51.16M |
Zhong Ao Home Group Limited Technical Analysis
Positive
0.39
Price Trends
0.73
Positive
0.75
Positive
0.62
Positive
Market Momentum
0.02
Negative
64.47
Neutral
91.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1538, the sentiment is Positive. The current price of 0.39 is below the 20-day moving average (MA) of 0.66, below the 50-day MA of 0.73, and below the 200-day MA of 0.62, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.47 is Neutral, neither overbought nor oversold. The STOCH value of 91.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1538.
Zhong Ao Home Group Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$679.37M | 5.73 | 8.91% | 3.14% | 7.28% | 15.40% | |
74 Outperform | HK$428.53M | 5.61 | 9.04% | ― | -0.05% | -6.32% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
65 Neutral | HK$476.43M | 21.91 | 1.38% | 11.34% | 9.07% | -21.33% | |
64 Neutral | HK$701.15M | 17.06 | 1.01% | 11.11% | -46.30% | ― | |
51 Neutral | HK$355.20M | -0.27 | -164.22% | 4.07% | -2.49% | -237.74% | |
49 Neutral | HK$381.50M | -7.99 | -5.91% | 86.67% | 5.44% | -204.66% |
* Real Estate Sector Average
HK:1538
Zhong Ao Home Group Limited
0.80
0.34
74.73%
HK:1036
Vanke Property (Overseas)
1.80
0.34
22.95%
HK:9928
Times Neighborhood Holdings Ltd.
0.49
-0.02
-4.34%
HK:2165
Ling Yue Services Group Limited
1.50
-0.72
-32.43%
HK:2205
Kangqiao Service Group Limited
0.55
-0.10
-16.15%
HK:6677
Sino-Ocean Service Holding Ltd.
0.30
-0.19
-39.15%
Zhong Ao Home Group Limited Corporate Events
Zhong Ao Home Posts Softer Interim Profit Despite Revenue Uptick
Aug 28, 2026
Zhong Ao Home Group Limited reported interim results for the six months ended 30 June 2026 showing modest top-line growth but weaker profitability. Revenue inched up 1.3% year on year to approximately RMB911.0 million, while gross profit slipped 2...
Zhong Ao Home Ends Planned JV and Convertible Bond Deal
Aug 18, 2026
Zhong Ao Home Group Limited has terminated a previously announced major transaction involving the formation of a joint venture and a proposed issue of convertible bonds under a specific mandate. The joint venture agreement was subject to condition...
Zhong Ao Home Schedules Board Meeting to Approve Interim Results
Aug 18, 2026
Zhong Ao Home Group Limited, incorporated in the Cayman Islands and listed in Hong Kong under stock code 1538, operates with a board chaired by Liu Jian and includes executive, non-executive and independent non-executive directors. The company fol...
Zhong Ao Home Sets Up Joint Venture and Plans HK$306 Million Convertible Bond Issue
Jul 21, 2026
Zhong Ao Home Group Limited has moved to deepen its partnership strategy by having its wholly owned subsidiary New Trillion sign a joint venture agreement with investor Ms. Tseung, establishing a JV Group with New Trillion and a BVI holding compan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.