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Zhixin Group Holding Limited (2187) Fair Value & Analysis

Basic Materials · HK · Market cap HK$530M

ZG Zhixin Group Holding Limited 2187 · HK
PriceHK$0.4850
Fair ValueHK$0.7760
Upside+60.0%
Quality29/100
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Weak Growth
Loss-making · -10.6% net margin
Moderate debt · negative free cash flow
Trails peers (4/11)
Narrow moat 3/100
Evidence: Low Range HK$0.7221 – HK$0.8730 Share as image

Fair value as of: Aug 13, 2026

From 3 valuation models · updated 3 days ago

Fair value updated Aug 13, 2026, revised from HK$0.7200 to HK$0.7760 (+7.8%) since Aug 5, 2026. Share price −14.9% over the past month.

Below-average quality, screening 60% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (29/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (HK$0.7221). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

HK$10.10 HK$0.3750 Fair Value HK$0.7760 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.3750 – HK$10.10 · fair‑value band HK$0.7221 – HK$0.8730 · the HK$0.4850 price screens below the HK$0.7760 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Zhixin Group Holding Limited (2187) currently trades at HK$0.4850, while our model-based Fair Value estimate is HK$0.7760, implying the stock looks roughly 60.0% undervalued today. The Quality Score stands at 29/100 (below-average quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: low), always confirm before acting.

Over the trailing twelve months, Zhixin Group Holding Limited generated revenue of HK$553M at a net margin of -10.6%. Revenue declined 12.8% year over year. It earns a return on equity of -16.8%. Net debt stands at HK$459M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.7221 (bear case) to HK$0.8730 (bull case); at HK$0.4850, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 51% below its 52-week high and 43% above its 52-week low, currently below its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -60% fair-value upside, at 60%, 2187 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Gordon GGM HK$0.5400 HK$0.5900 HK$0.6500 70
DDM Multi-Stage HK$0.5400 HK$0.6500 HK$0.7800 61
NCAV (Graham) HK$0.1800 HK$0.2400 HK$0.3600 50
All 3 models by family
Dividend Discount
Gordon GGM HK$0.5400 HK$0.5900 HK$0.6500 70
DDM Multi-Stage HK$0.5400 HK$0.6500 HK$0.7800 61
Asset-Based
NCAV (Graham) HK$0.1800 HK$0.2400 HK$0.3600 50

Widest divergence: Dividend Discount (HK$0.5900) versus Asset-Based (HK$0.2400). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) HK$553M
Revenue growth (YoY) -12.8%
Net margin -10.6%
Return on equity -16.8%
Free cash flow −HK$123M FY2025
Operating margin -1.6%
More key figures
EPS (TTM) HK$-0.0700
EPS growth (YoY) -89.0%
Net debt HK$459M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 29/100

Of which business quality 29 · Market factors (momentum, volatility) 31

Profitability 6
Margins and returns on capital today
Quality Growth 21
Are margins and returns improving?
Cashflow 17
Earnings quality: real cash, not paper profit
Fin. Strength 15
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 31
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Zhixin Group Holding Limited, an investment holding company, manufactures and supplies concrete-based building materials in the People's Republic of China. The company provides ready-mixed concrete and precast concrete components.

Full company description

Zhixin Group Holding Limited, an investment holding company, manufactures and supplies concrete-based building materials in the People's Republic of China. The company provides ready-mixed concrete and precast concrete components. It also offers recycles iron ore tailings; and manufactures photovoltaic equipment, semiconductor devices, and new construction materials, as well as bricks. The company serves construction companies for various building and construction projects, including municipal, infrastructural, commercial, industrial, and residential projects for public and private sectors; and mineral trading companies. Zhixin Group Holding Limited was incorporated in 2018 and is headquartered in Xiamen, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Zhixin Group Holding Limited reported revenue of HK$553M in FY2025 versus HK$765M in FY2021, a compound −7.8%/yr. Reported net income was −HK$58.5M in FY2025.

Growth Quality 0/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$553M
Latest YoY
−4.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−4.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−6.8%
Avg. growth/yr (8Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.1%
Revenue −7.8%/yr
FY21 HK$765M
FY22 HK$634M
FY23 HK$513M
FY24 HK$580M
FY25 HK$553M
Net income
FY21 HK$20.4M
FY22 HK$1.3M
FY23 HK$10.1M
FY24 −HK$75.2M
FY25 −HK$58.5M

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Cite: Fair Value Calculator (2026). "Zhixin Group Holding Limited Fair Value". https://www.fairvalue-calculator.com/stock/2187

Peer Group

Building Materials · 258 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 29 · Bottom 25%
Fair Value upside +60% · Top 25%
Return on assets -2% · Bottom 25%
Net margin (TTM) -11% · Bottom 25%
Operating margin (TTM) -2% · Below median
Revenue growth -13% · Bottom 25%
Dividend yield (TTM) 11.9% · Top 25%
Debt / equity 1.10× · Higher than 75% of peers

Valuation Multiples vs Building Materials median · lower = cheaper

P/B 0.21× · Cheaper than 75% of peers
P/S (TTM) 0.12× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 21
FUTURE 0 · sector 2
PAST 0 · sector 15
HEALTH 45 · sector 93
DIVIDEND 100 · sector 52

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Building Materials stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
UltraTech Cement Limited ULTRACEMCO ₹11,891 ₹4,718 -60%
China Jushi Co 600176 ¥43.31 ¥13.22 -69%
Grasim Industries Limited GRASIM ₹3,308 ₹1,245 -62%
CEMEX, S.A. CEMEXCPO 21.71 MXN 12.27 MXN -43%
Anhui Conch Cement Company 600585 ¥17.49 ¥26.14 +49%
Ambuja Cements Limited AMBUJACEM ₹421.00 ₹216.73 -49%
Shree Cement Limited SHREECEM ₹25,570 ₹8,215 -68%
TCC Group 1101B 43.15 TWD 9.76 TWD -77%
Taiwan Glass Ind. Corp 1802 57.60 TWD 13.98 TWD -76%
J.K. Cement Limited JKCEMENT ₹5,349 ₹2,184 -59%

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Frequently asked questions

Is Zhixin Group Holding Limited (2187) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.7760 versus a price of HK$0.4850, about +60% (undervalued).
What is the fair value of 2187?
Our model-based fair value for Zhixin Group Holding Limited is HK$0.7760 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.4850.
What is the quality score of 2187?
Zhixin Group Holding Limited has a Quality Score of 29/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Zhixin Group Holding Limited (2187)?
Zhixin Group Holding Limited reported trailing-twelve-month revenue of about HK$553M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2187?
The net profit margin of Zhixin Group Holding Limited is about -10.6%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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