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Hebei Construction Group Co. Ltd. Class H (1727) AI Stock Analysis

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HK:1727

Hebei Construction Group Co. Ltd. Class H

(HKEX:1727)

Select Model
Rating:41Neutral
Price Target:HKD 0.20â–¼(-2.50% Downside)
Action:reiterated
Date:08/19/26

The overall score of 41 is driven primarily by very weak financial performance, with sharp revenue contraction, a return to net losses, rising leverage where debt exceeds equity, and sustained negative operating and free cash flows that materially increase financial risk. Technical indicators reinforce a cautious view, showing a persistent downtrend and only modest oversold conditions, limiting confidence in a durable near-term rebound. Valuation offers little offsetting support because the negative P/E and lack of dividend indicate that the market is pricing in current losses without providing meaningful income or clear value upside.

Positive Factors
Serviceable Balance SheetA sizable equity base and a balance sheet described as not distressed provide some capacity to continue operating through project cycles. This does not remove financial pressure, but it offers a more durable foundation than an immediately impaired capital structure.
Negative Factors
Multi-Year Revenue DeclineA prolonged revenue contraction reduces scale, weakens operating leverage, and can make fixed costs harder to absorb. The sharp 2025 decline indicates that the pressure is not limited to a single mild slowdown, raising concern about the company’s ability to rebuild earnings over coming quarters.

Hebei Construction Group Co. Ltd. Class H (1727) vs. iShares MSCI Hong Kong ETF (EWH)

-60%-50%-40%-30%-20%-10%0%10%20%HK:1727-50.62%EWH+8.17%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
HKD 338.19M
Dividend Yield
―
Average Volume (3M)
102.60K
Price to Earnings (P/E)
-0.4
Beta (1Y)
0.40
Revenue Growth
-42.97%
EPS Growth
-569.49%
Country
Hong Kong
Employees
5,136
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

Hebei Construction Group Co. Ltd. Class H Business Overview & Revenue Model

Company Description

Operating primarily within the People's Republic of China, Hebei Construction Group Corporation Limited specializes in undertaking construction contracts for a broad spectrum of building and infrastructure developments. Its business is structured int...

How the Company Makes Money

The company primarily makes money by earning contract revenue from construction and engineering projects it wins and delivers. Key revenue streams typically include: (1) main contracting income from executing construction works under project contract...

Hebei Construction Group Co. Ltd. Class H Financial Statement Overview

Summary

Financial performance is weak: revenue has fallen sharply from about CNY 40 billion in 2020 to roughly CNY 15 billion in 2025 with consecutive annual declines, profitability has swung back to a sizeable net loss in 2025 on already thin 4–5% gross margins, leverage has risen to the point that debt now exceeds equity, and operating plus free cash flows have turned consistently and heavily negative, indicating elevated financial and funding risk despite a still sizeable equity base.

Income Statement

28Negative

Balance Sheet

40Negative

Cash Flow

20Very Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue12.18B15.48B25.06B33.49B40.01B47.83B
Gross Profit598.38M837.63M1.37B1.80B1.63B2.49B
EBITDA101.26M193.25M676.49M652.58M836.32M-93.16M
Net Income-685.77M-579.78M170.71M171.40M326.73M-345.98M
Balance Sheet
Total Assets44.52B47.81B61.84B64.89B67.63B66.95B
Cash, Cash Equivalents and Short-Term Investments2.99B4.37B5.77B7.70B9.13B8.81B
Total Debt7.22B7.31B6.07B5.33B5.11B4.00B
Total Liabilities38.77B42.05B55.45B58.66B61.46B61.07B
Stockholders Equity5.60B5.60B6.22B6.05B5.99B5.69B
Cash Flow
Free Cash Flow-3.16B-2.23B-1.55B-1.38B-46.07M600.75M
Operating Cash Flow-3.16B-2.22B-1.53B-1.33B35.16M854.87M
Investing Cash Flow135.07M20.55M75.21M-25.14M-512.00K-165.09M
Financing Cash Flow787.96M424.12M-75.56M-601.82M140.23M-360.97M

Hebei Construction Group Co. Ltd. Class H Technical Analysis

Technical Analysis SentimentNegative
Last Price0.20

Price Trends

50DMA0.22Negative
100DMA0.23Negative
200DMA0.28Negative

Market Momentum

MACD-0.01Negative
RSI39.42Neutral
STOCH44.44Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1727, the sentiment is Negative. The current price of 0.20 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.22, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 39.42 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1727.

Hebei Construction Group Co. Ltd. Class H Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:1727 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0240HK:024064NeutralHKD 1.78B3.8615.72%11.85%-12.79%-0.62%
HK:1599HK:159963NeutralHKD 1.25B2.255.88%8.89%――
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:2355HK:235562NeutralHKD 1.47B16.600.59%3.34%8.21%-57.24%
HK:2515HK:251557NeutralHKD 1.33B-11.00-15.13%―-11.68%-519.42%
HK:2503HK:250343NeutralHKD 841.05M-4.81-5.21%―-25.02%-189.47%
HK:1727HK:172741NeutralHKD 359.32M-0.44-12.24%―-42.97%-569.49%

* Industrials Sector Average

Performance Comparison

0%200%400%600%HK:1727HK:0240HK:1599HK:2355HK:2503HK:2515Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
HK:1727 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1727Hebei Construction Group Co. Ltd. Class H0.20-0.21-51.22%
HK:0240Build King Holdings1.430.021.13%
HK:1599Beijing Urban Construction Design & Development Grp Co., Ltd Class H0.93-0.40-30.08%
HK:2355Baoye Group Co., Ltd. Class H2.93-1.00-25.52%
HK:2503Zhongshen Jianye Holding Limited0.24-0.34-58.50%
HK:2515Tianjin Construction Development Group Co., Ltd. Class H4.103.43511.94%

Hebei Construction Group Co. Ltd. Class H Corporate Events

Hebei Construction Faces 42 Court Enforcement Cases

Nov 5, 2026

Hebei Construction Group operates in China’s construction industry, providing construction engineering and related project services. The company disclosed that mainland courts have included it as an enforcement respondent in 42 debt-dispute cases, wh...

Hebei Construction Group Wins Key Loan Renewals in Bid to Ease Going-Concern Risk

Oct 19, 2026

Hebei Construction Group has issued a quarterly update on its action plans to address the auditor’s disclaimer of opinion linked to material uncertainty over its ability to continue as a going concern. The Group is focused on improving liquidity and...

Hebei Construction Group Shareholders Approve 2026 Domestic Auditor at Extraordinary Meeting

Oct 15, 2026

Hebei Construction Group Corporation Limited, a PRC-based construction and infrastructure company listed in Hong Kong, operates through a mix of H shares and domestic shares and is governed by a board of executive, non-executive and independent non-e...

Hebei Construction Group Proposes WUYIGE as New Domestic Auditor for 2026

Sep 24, 2026

Hebei Construction Group Corporation Limited plans to appoint WUYIGE Certified Public Accountants LLP as its domestic auditor for 2026, replacing its previous auditor after a structured selection process. The proposed mandate covers auditing financia...

Hebei Construction Group Calls 2026 EGM to Approve Domestic Auditor

Sep 24, 2026

Hebei Construction Group Corporation Limited has called its first extraordinary general meeting of 2026 for 15 October in Baoding, Hebei Province, to seek shareholder approval for the appointment of a domestic auditor for the 2026 financial year and...

Hebei Construction Group’s Interim Profit Nearly Wiped Out as Revenue Slides 42%

Aug 31, 2026

Hebei Construction Group Corporation Limited, a PRC-based construction and engineering group listed on the Hong Kong Stock Exchange, reported a sharp deterioration in its interim financial performance for the six months ended 30 June 2026. The compan...

Hebei Construction Group Sets Board Meeting to Approve 2026 Interim Results and Consider Dividend

Aug 19, 2026

Hebei Construction Group Corporation Limited has scheduled a board meeting for Monday, 31 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider a possible recommendation for the paym...

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: Oct 21, 2026