Zhong Ao Home Group Limited (1538) AI Stock Analysis

Zhong Ao Home Group Limited

(HKEX:1538)

Select Model

Rating:72Outperform

Price Target:HKD 0.97▲(27.11% Upside)

Action:reiterated

Date:09/15/26

Strong balance sheet and attractive low P/E valuation are the primary drivers, supported by bullish technical momentum.

Positive Factors

Revenue Re-accelerationThe sharp 2025 revenue rebound indicates renewed business momentum after a slower period. Sustained expansion in property management and related services could strengthen operating scale, support investment in service capacity, and improve the company’s ability to compound earnings over the next several quarters.

Negative Factors

Long-Term Margin CompressionProfitability remains positive, but the decline in net margin from earlier years suggests that the company has less earnings retained from each unit of revenue. If this trend persists, it could limit profit growth, reduce reinvestment capacity, and indicate weaker pricing power or higher operating costs.

Zhong Ao Home Group Limited (1538) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 653.73M
Dividend Yield: 3.29%
Average Volume (3M): 722.33K
Price to Earnings (P/E): 5.7
Beta (1Y): -0.15
Revenue Growth: 7.28%
EPS Growth: 15.40%
Country: Hong Kong
Employees: 7,011
Sector: Real Estate
Sector Strength: 65
Industry: Real Estate - Services

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 varie...

How the Company Makes Money

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Zhong Ao Home Group Limited Financial Statement Overview

Summary

Robust balance sheet with low debt and growing equity supports stability, offset by inconsistent revenue growth and volatile cash flows.

Income Statement

55Neutral

Balance Sheet

85Very Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.86B	1.84B	1.78B	1.71B	1.70B	1.87B
Gross Profit	378.98M	383.85M	366.81M	350.56M	358.23M	431.86M
EBITDA	206.63M	203.05M	179.05M	167.42M	165.87M	221.90M
Net Income	101.23M	98.19M	88.90M	80.05M	76.91M	106.28M
Balance Sheet
Total Assets	2.05B	2.02B	1.94B	2.07B	1.96B	2.19B
Cash, Cash Equivalents and Short-Term Investments	505.36M	631.59M	545.16M	534.54M	453.73M	450.54M
Total Debt	7.09M	47.31M	52.87M	61.26M	61.34M	68.78M
Total Liabilities	837.71M	839.95M	842.33M	1.03B	970.19M	1.20B
Stockholders Equity	1.15B	1.12B	1.04B	970.33M	916.59M	899.25M
Cash Flow
Free Cash Flow	92.85M	115.22M	34.81M	96.86M	63.45M	-14.94M
Operating Cash Flow	122.02M	136.72M	58.77M	124.08M	83.53M	33.83M
Investing Cash Flow	-22.20M	-13.36M	-7.76M	-311.00K	-68.46M	-42.24M
Financing Cash Flow	-73.44M	-38.72M	-36.96M	-40.14M	-4.76M	-51.16M

Zhong Ao Home Group Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price0.76

Price Trends

50DMA0.77Negative

100DMA0.78Negative

200DMA0.69Positive

Market Momentum

MACD-0.01Positive

RSI41.79Neutral

STOCH36.09Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1538, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.81, below the 50-day MA of 0.77, and above the 200-day MA of 0.69, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 36.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1538.

Zhong Ao Home Group Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

HK:1538 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:1538	72Outperform	HKD 649.46M	5.73	8.91%	3.29%	7.28%	15.40%
Sector *	65Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HK:9928	65Neutral	HKD 456.78M	20.88	1.38%	11.83%	9.07%	-21.33%
HK:2165	64Neutral	HKD 578.51M	7.47	9.04%	―	-0.05%	-6.32%
HK:1036	60Neutral	HKD 712.84M	17.34	1.01%	10.93%	-46.30%	―
HK:2205	48Neutral	HKD 294.00M	-6.06	-5.91%	―	5.44%	-204.66%
HK:6677	40Underperform	HKD 290.08M	-0.22	-164.22%	4.98%	-2.49%	-237.74%

* Real Estate Sector Average

Performance Comparison

HK:1538 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1538	Zhong Ao Home Group Limited	0.76	0.37	96.38%
HK:1036	Vanke Property (Overseas)	1.83	0.23	14.59%
HK:9928	Times Neighborhood Holdings Ltd.	0.47	-0.03	-6.63%
HK:2165	Ling Yue Services Group Limited	2.02	0.16	8.87%
HK:2205	Kangqiao Service Group Limited	0.42	-0.26	-38.24%
HK:6677	Sino-Ocean Service Holding Ltd.	0.24	-0.19	-43.68%

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 2.6%...

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 conditions p...

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 follow...

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 company a...

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.

Date of analysis: Sep 15, 2026

Zhong Ao Home Group Limited AI Stock Analysis