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Baoye Group Co., Ltd. Class H (2355) AI Stock Analysis

HK:2355

Baoye Group Co., Ltd. Class H

(HKEX:2355)

Select Model
Rating:50.5Neutral
Price Target:HKD 3.00â–²(6.01% Upside)
Action:reiterated
Date:08/17/26

The overall score is dragged down primarily by deteriorating financial performance, with shrinking margins, weaker profitability, and a sharp shift to negative operating and free cash flow that raises liquidity and project execution concerns. Technicals add a modest negative bias as the stock trades below key moving averages with subdued momentum, reflecting limited investor appetite. These risks are partially offset by an undemanding valuation with a low P/E and reasonable dividend yield, which could provide some downside support if management stabilizes cash generation and profitability.

Positive Factors
Revenue rebound and growthThe return to revenue growth in 2025 indicates that Baoye retained demand across its construction and property activities after the prior-year decline. If this recovery persists, a broader revenue base can support operating scale and provide a foundation for rebuilding earnings over the next several quarters.
Negative Factors
Negative operating and free cash flowTwo consecutive years of negative operating and free cash flow indicate that reported business activity is not currently converting reliably into cash. Persistent working-capital pressure or investment needs could increase financing dependence and constrain Baoye's ability to fund projects, dividends, or growth internally.

Baoye Group Co., Ltd. Class H (2355) vs. iShares MSCI Hong Kong ETF (EWH)

-40%-30%-20%-10%0%10%20%HK:2355-28.25%EWH+8.19%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
HKD 1.48B
Dividend Yield
3.46%
Average Volume (3M)
58.83K
Price to Earnings (P/E)
16.0
Beta (1Y)
0.47
Revenue Growth
8.21%
EPS Growth
-57.24%
Country
Hong Kong
Employees
5,555
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

Baoye Group Co., Ltd. Class H Business Overview & Revenue Model

Company Description

Baoye Group Company Limited, along with its affiliated entities, provides an extensive range of construction services across the People's Republic of China. The company's business activities are structured across three primary divisions: Construction...

Baoye Group Co., Ltd. Class H Financial Statement Overview

Summary

Financial performance is weak overall: income statement shows declining revenue, compressed margins, and lower net income, the balance sheet is only moderately healthy with falling ROE and contracting assets, and cash flow has swung sharply into negative territory with significant free cash burn and liquidity risk.

Income Statement

42Neutral

Balance Sheet

58Neutral

Cash Flow

28Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue18.98B19.95B22.34B26.48B24.43B26.78B
Gross Profit1.34B1.48B1.74B2.20B1.80B2.15B
EBITDA591.16M803.25M1.01B1.91B1.16B1.39B
Net Income77.31M289.64M409.91M889.26M704.78M788.48M
Balance Sheet
Total Assets41.58B42.25B45.20B48.51B48.82B48.92B
Cash, Cash Equivalents and Short-Term Investments11.98B10.04B8.91B9.77B8.18B8.61B
Total Debt4.92B4.06B4.29B3.56B2.99B4.07B
Total Liabilities28.24B28.60B31.66B35.51B36.97B37.57B
Stockholders Equity12.90B13.13B12.99B12.58B11.40B10.87B
Cash Flow
Free Cash Flow539.51M-406.82M-291.31M753.10M869.81M880.83M
Operating Cash Flow777.86M-128.94M-24.48M1.43B1.30B1.35B
Investing Cash Flow-668.22M-1.57B-533.16M-221.88M410.58M188.78M
Financing Cash Flow850.14M248.68M-870.42M465.92M-1.80B-977.72M

Baoye Group Co., Ltd. Class H Technical Analysis

Technical Analysis SentimentPositive
Last Price2.83

Price Trends

50DMA2.87Negative
100DMA3.13Negative
200DMA3.56Negative

Market Momentum

MACD-0.02Negative
RSI54.82Neutral
STOCH68.99Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2355, the sentiment is Positive. The current price of 2.83 is above the 20-day moving average (MA) of 2.75, below the 50-day MA of 2.87, and below the 200-day MA of 3.56, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 68.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2355.

Baoye Group Co., Ltd. Class H Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:2355 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0240HK:024084OutperformHKD 1.73B3.7815.72%12.10%-12.79%-0.62%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:1599HK:159956NeutralHKD 1.23B2.165.88%8.99%――
HK:2355HK:235551NeutralHKD 1.48B16.020.59%3.46%8.21%-57.24%
HK:0896HK:089647NeutralHKD 316.56M-0.35-31.01%―-22.33%-203.23%
HK:0830HK:083046NeutralHKD 1.31B-83.33-0.53%4.87%-15.27%-103.20%
HK:0406HK:040634UnderperformHKD 216.84M-1.07-15.28%―13.50%-106.11%

* Industrials Sector Average

Performance Comparison

-40%-20%0%20%HK:2355HK:0240HK:0896HK:1599HK:0406HK:0830Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
HK:2355 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:2355Baoye Group Co., Ltd. Class H2.83-1.18-29.46%
HK:0240Build King Holdings1.400.053.63%
HK:0896Hanison Construction Holdings 0.290.0519.43%
HK:1599Beijing Urban Construction Design & Development Grp Co., Ltd Class H0.92-0.40-30.37%
HK:0406Yau Lee Holdings Limited0.49-0.20-29.29%
HK:0830China State Construction Development Holdings Limited0.57-0.53-48.01%

Baoye Group Co., Ltd. Class H Corporate Events

Baoye Group Swings to Interim Loss as Revenue and Profitability Slide

Aug 28, 2026

Baoye Group Co., Ltd. reported a sharp downturn in its interim results for the six months ended 30 June 2026, as revenue fell to RMB 7.53 billion from RMB 8.50 billion a year earlier and gross profit shrank accordingly. The group swung to a net loss...

Baoye Group Warns of Interim Loss Amid Construction Downturn

Aug 14, 2026

Baoye Group Company Limited, a PRC-based construction and property development group listed in Hong Kong, generates revenue primarily from building projects and property deliveries across China. Its financial results are sensitive to fluctuations in...

Baoye Group Sets August Board Meeting to Approve 2026 Interim Results

Aug 14, 2026

Baoye Group Company Limited has scheduled a board meeting for 28 August 2026 in Zhejiang, China, to review and approve the unaudited interim results for the six months ended 30 June 2026. The company plans to publish these interim figures following b...

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: Aug 17, 2026