Hardware FixRecommendedDevice not working? Your driver may be the problemCheck updates for common hardware issues.Fix DriversOctober DealsAmazon USOctober deal check: compare before you payAmazon US: current deals, useful picks and tech finds.Check DealsClean PCRecommendedOne scan can reveal what keeps slowing WindowsLook for cleanup and repair opportunities.Run Scan×
Skip to content
The Finance Base
The Money Desk · Blog
Re:

Forward Price-to-Sales for Zhongtian Construction (Hunan) Group Limited (HKEX: 2433)

A forward price-to-sales ratio for Zhongtian Construction (HKEX: 2433) needs a dated market value and a sourced revenue forecast. Here is what the reported figures show and how to calculate it correctly.
From TheFinanceBase Team6 min to read
Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

No reliable forward price-to-sales (P/S) figure for Zhongtian Construction (Hunan) Group Limited (HKEX: 2433) can be stated as fact from the public record we can confirm. A forward P/S needs a dated market capitalisation and a forward revenue estimate for a named future period, and neither is established here. The company’s reported sales are well documented, however, and they explain why a sales multiple would be a weak guide for this business even once the inputs are settled.

What a forward P/S requires

A forward price-to-sales ratio divides a company’s market capitalisation at a stated date by its forecast revenue for a stated future period. Both sides must be in the same currency and must cover a clearly defined window. Three inputs need to be fixed before the ratio means anything:

  • Market capitalisation at a dated close. This is the share price on a specific trading day multiplied by the number of shares currently in issue, not a historical average share count.
  • Forward revenue for a named period. This is typically the next full financial year or the next twelve months, and it must be sourced to company guidance, a named analyst consensus provider, or a clearly labelled personal scenario.
  • Currency alignment. Zhongtian reports revenue in renminbi (RMB) while its shares trade in Hong Kong dollars (HKD). Converting one into the other requires an exchange rate with a stated date and method.

What the reported numbers show

The company’s audited full-year results and its unaudited interim results give the sales base against which any forward estimate would be judged. The table below sets out the figures as reported.

Metric (RMB million unless stated) FY2024 FY2025 1H2025 1H2026
Revenue 930.801 586.346 346.554 321.035
Gross margin approx. 7.6% approx. 9.9% not stated in the sources cited about 10.0% (gross profit of 32.168 divided by revenue)
Net loss 26.441 77.697 not stated in the sources cited 87.500
Owner-attributable loss not stated in the sources cited 75.493 not stated in the sources cited not stated in the sources cited
Impairment on financial and contract assets not stated in the sources cited not stated in the sources cited 24.268 104.053

FY2024 and FY2025 figures are audited. The 1H2026 figures are unaudited interim numbers for the six months ended 30 June 2026, announced on 28 August 2026. Interim figures should be checked against the exchange-hosted announcement before they are quoted as final.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Full-year FY2025

Revenue fell 37.0% to RMB586.346 million from RMB930.801 million in FY2024. The company’s results announcement attributes the decline to reductions across its major construction segments amid challenging market conditions. Gross margin improved to approximately 9.9% from approximately 7.6%, but the net loss widened to RMB77.697 million from RMB26.441 million. The annual report puts the owner-attributable loss at RMB75.493 million. The company paid or declared no dividends in either FY2025 or FY2024.

Interim period to 30 June 2026

Interim revenue was RMB321.035 million, against RMB346.554 million in the first half of 2025, a decline of about 7.4%. Gross profit was RMB32.168 million. The net loss was RMB87.500 million, and impairment on financial and contract assets rose to RMB104.053 million from RMB24.268 million in the comparable period.

The August profit warning

On 25 August 2026 the company warned that it expected a first-half net loss of RMB85 million to RMB90 million, based on preliminary unaudited management accounts. It attributed the larger loss to lower revenue amid economic slowdown and to further impairment linked to longer customer settlement periods. The reported interim net loss of RMB87.5 million falls inside that range. Profit warnings are preliminary by nature, so the later interim results are the figures to use.

Why the margin gain does not settle the picture

A sales multiple implicitly assumes that each unit of revenue carries comparable profit. Zhongtian’s record does not support that assumption at present. Gross margin rose in FY2025 and held near 10% in the first half of 2026, yet both periods were loss-making, and the loss widened in the interim as impairment charges rose sharply. The published figures cited here do not break the FY2025 loss down by cause, so the gap between better margins and bigger losses should not be read as one explanation.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Impairment on financial and contract assets reflects doubt about whether amounts owed by customers, including sums tied to completed or in-progress work, will be recovered in full. The company links the latest increase to longer customer settlement periods. Revenue recognised at a high headline value therefore says little about the cash the business will collect, which is why collections matter more than the sales line for this company.

Forward revenue: no sourced estimate

No company revenue guidance and no analyst consensus revenue estimate for a future period was established in the material reviewed. Three shortcuts would be misleading:

  • Using FY2025 revenue produces a trailing price-to-sales ratio, not a forward one.
  • Doubling 1H2026 revenue (about RMB642 million) is arithmetic, not a forecast. It ignores seasonality, the warning’s stated drivers and the company’s project pipeline.
  • Applying a peer multiple is unsupported here, because no peer set with matching forward periods and currencies was established.

If you build your own revenue scenario, label it as a personal assumption and state the period it covers. Run at least a low, base and high case so the reader can see how far the ratio moves.

Share count: why the 576 million figure is not enough

The FY2025 annual report gives weighted average shares in issue of 576 million. That is an average over the accounting period. It is not the number of shares outstanding on a trading day, and it cannot be multiplied by today’s share price to produce a current market capitalisation. Any share issues, buybacks or other capital changes since the period end must be checked against the company’s latest HKEX announcements.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Support on Ko-Fi

Management’s stated plan and what has been proven

In its 2025 interim report, the company described a challenging construction environment shaped by a prolonged property downturn in China and cautious public-sector spending. Management said it would focus on civil building and municipal projects, which it considers relatively stable, and tighten project and client selection. Its other stated priorities were cost control, protecting liquidity, accelerating collections, and examining opportunities in urban renewal and infrastructure upgrades.

These are management’s plans, not demonstrated results. The 1H2026 impairment increase, reported after those plans were stated, indicates that collection and contract-asset quality were still under pressure in the first half of 2026.

How to calculate forward P/S once the inputs are fixed

  1. Record the closing share price for code 2433 on a chosen date from the HKEX securities quote for Zhongtian Construction (Hunan) Group Limited.
  2. Confirm the current issued share count from the most recent HKEX share capital disclosure or the latest interim report.
  3. Multiply the share price by the issued shares to get market capitalisation in HKD.
  4. Convert the market capitalisation to RMB at a stated exchange rate and date, or convert the revenue estimate to HKD at the same rate.
  5. Select the forward revenue estimate and record its source, period and currency.
  6. Divide market capitalisation by forward revenue, then repeat with low, base and high revenue cases.
  7. When comparing with other contractors, use the same forward period and currency, and adjust for gross margin, receivables and leverage before drawing conclusions.

Sources used

  • Zhongtian Construction (Hunan) Group Limited, FY2025 results announcement, 2026 (audited annual figures).
  • Zhongtian Construction (Hunan) Group Limited, FY2025 annual report, 2026 (owner-attributable loss, weighted average shares, dividend statement).
  • Zhongtian Construction (Hunan) Group Limited, profit warning announcement dated 25 August 2026 (preliminary first-half loss range).
  • Zhongtian Construction (Hunan) Group Limited, interim results for the six months ended 30 June 2026, announced 28 August 2026 (unaudited).
  • Zhongtian Construction (Hunan) Group Limited, 2025 interim report (stated outlook and priorities).

Sources are listed by title and date as published on the Hong Kong Exchanges and Clearing (HKEX) website.

The company’s 2025 interim report and HKEX announcements are the best starting point for any update to these figures.

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

Leave a Reply

Your email address will not be published. Required fields are marked *

Special offer. See more information about Outbyte and uninstall instructions. Please review EULA and Privacy policy.

More post from the Money Desk

  1. The Money DeskBlogTheFinanceBase09 OCT 267 minMortgage Escrow FAQs: Taxes, Insurance, Shortages, and Refunds
  2. The Money DeskBlogTheFinanceBase09 OCT 265 minHow Mortgage Escrow Accounts Work and What Homeowners Pay For
  3. The Money DeskBlogTheFinanceBase09 OCT 265 minHow to Read a Stock Chart, Volume and Market-Cap Data
Recommended PC Tool
Recommended PC Tool
Crashes, No Sound, or Screen Glitches?Free driver scan
Windows Errors? Fix Them Before They SpreadFree repair scan

Two free Windows tools

One Free Minute Could Fix That PC

Before you go - each of these free tools takes about a minute and tackles what quietly slows a Windows PC down.

Special offer. View Outbyte info, uninstall instructions, EULA, and Privacy Policy.