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Mexan Limited (HK:0022)
:0022
Hong Kong Market

Mexan (0022) AI Stock Analysis

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HK

Mexan

(0022)

Rating:46Neutral
Price Target:
The overall stock score of 46 reflects Mexan's financial challenges, including negative net income and EBIT, despite revenue growth and improved cash flow. Technical indicators suggest the stock is overbought, posing risks of a correction. Valuation is unattractive with a negative P/E ratio, and no dividends to offer immediate returns. These factors collectively highlight the need for caution.

Mexan (0022) vs. iShares MSCI Hong Kong ETF (EWH)

Mexan Business Overview & Revenue Model

Company DescriptionMexan Limited (0022) is a Hong Kong-based company primarily engaged in the operation and management of car parks and related facilities. The company offers a range of services including car park management, valet parking, and other ancillary services. It also provides consultancy services related to car park management, ensuring efficient and effective operations that cater to the needs of its clients.
How the Company Makes MoneyMexan Limited generates revenue primarily through its car park management services. The company enters into management contracts with property owners or developers to operate and manage car parks on their behalf. Revenue is derived from management fees, which are typically a percentage of the car park's gross revenue or a fixed monthly fee. Additionally, Mexan may earn income from valet parking services and other ancillary services it provides. The company might also engage in consultancy services, offering expertise in car park operations to optimize client facilities. Strategic partnerships with property developers and owners play a crucial role in expanding their portfolio and increasing revenue.

Mexan Financial Statement Overview

Summary
Mexan has shown positive revenue growth and improved cash flow management, but persistent negative net income and EBIT indicate ongoing operational challenges. The balance sheet remains stable with moderate leverage, but declining equity over time is a concern. Continued focus on cost management and profitability is crucial for future growth and financial stability.
Income Statement
45
Neutral
The company has shown a significant revenue growth in the latest year, increasing from HKD 126.36 million to HKD 176.94 million, which is a positive sign. However, the company continues to experience negative EBIT and net income, indicating ongoing challenges in achieving profitability. Gross profit margin is weak at approximately 24%, and the net profit margin remains negative at -11.4%, signaling issues in cost management and operational efficiency.
Balance Sheet
55
Neutral
The balance sheet shows a relatively stable equity position, with stockholders' equity at HKD 382.16 million. The debt-to-equity ratio is moderate at 0.32, indicating manageable leverage. Equity ratio stands at 68.8%, suggesting a solid financial structure. However, declining equity over the years could pose future risks if not addressed.
Cash Flow
60
Neutral
The company has improved its free cash flow from negative to positive, reaching HKD 16.21 million, indicating better cash management. The operating cash flow to net income ratio is positive, showing operational improvements. However, historical volatility in cash flows and recent improvements need to be sustained for long-term stability.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
150.52M176.94M126.36M27.52M24.49M43.54M
Gross Profit
48.49M69.00M44.32M8.66M11.09M19.45M
EBIT
6.54M-10.08M-22.80M-36.78M-37.22M-28.16M
EBITDA
8.43M13.48M-2.22M-22.99M-23.04M-50.18M
Net Income Common Stockholders
-20.49M-20.16M-23.77M-44.41M-43.26M-70.66M
Balance SheetCash, Cash Equivalents and Short-Term Investments
39.68M46.95M50.21M21.38M26.76M7.76M
Total Assets
511.62M555.23M602.36M536.21M557.98M565.84M
Total Debt
93.71M121.46M119.14M81.74M61.68M21.45M
Net Debt
62.20M78.81M68.93M60.36M34.92M13.69M
Total Liabilities
142.71M176.41M203.15M113.07M90.23M54.58M
Stockholders Equity
372.33M382.16M402.32M426.08M470.49M513.75M
Cash FlowFree Cash Flow
24.91M16.21M-26.61M-25.43M-12.18M-22.00M
Operating Cash Flow
26.94M18.23M-22.15M-16.46M-11.44M-21.28M
Investing Cash Flow
-975.00K-1.78M-6.24M-8.97M-737.00K-715.00K
Financing Cash Flow
-46.63M-24.01M57.23M20.06M31.17M-485.00K

Mexan Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.24
Price Trends
50DMA
0.13
Positive
100DMA
0.08
Positive
200DMA
0.05
Positive
Market Momentum
MACD
0.03
Negative
RSI
75.06
Negative
STOCH
96.67
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0022, the sentiment is Positive. The current price of 0.24 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.13, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 75.06 is Negative, neither overbought nor oversold. The STOCH value of 96.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0022.

Mexan Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$184.61B10.803.16%6.43%2.10%-27.28%
73
Outperform
$250.80B14.392.88%4.39%20.91%-29.29%
70
Outperform
$76.04B20.002.17%1.81%-30.38%-43.73%
69
Neutral
$152.13B8.974.15%2.55%-10.21%-40.22%
62
Neutral
$124.42B19.761.94%10.12%-7.64%-32.01%
61
Neutral
$920.83M5.892.43%4.36%10.27%-74.96%
46
Neutral
HK$468.00M-5.36%19.05%-12.78%-50.72%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0022
Mexan
0.30
0.29
2900.00%
HK:0001
CK Hutchison Holdings
48.20
13.04
37.07%
HK:0083
Sino Land Co
8.31
0.75
9.89%
HK:0016
Sun Hung Kai Properties
87.20
19.91
29.59%
HK:0688
China Overseas Land & Investment
14.00
0.92
7.03%
HK:0012
Henderson Land Development Co
26.90
7.10
35.89%

Mexan Corporate Events

Mexan Limited Announces Special Interim Dividend
Apr 25, 2025

Mexan Limited has announced a special interim dividend for the financial year ending March 31, 2026. The ex-dividend date is set for May 13, 2025, with the record date on May 16, 2025, although the exact dividend amount and payment date are yet to be announced. This move reflects the company’s financial strategy and may impact shareholder value and investor relations.

Mexan Limited Schedules Board Meeting to Discuss Special Interim Dividend
Apr 25, 2025

Mexan Limited has announced a board meeting scheduled for May 9, 2025, to consider and approve a special interim dividend for its shareholders. If approved, the register of members will be closed from May 15 to May 16, 2025, and specific procedures for share transfers and handling of treasury shares will be implemented.

Mexan Limited Acquires Remaining Stake in Target Company
Apr 22, 2025

Mexan Limited has announced a major transaction involving the acquisition of the remaining 49% shareholding and all remaining sale loans of a target company for HK$10,823,124.95. This acquisition is part of Mexan’s strategy to enhance its internal control system, with an independent consultant appointed to conduct an annual review of risk management and internal control systems. The review will focus on connected and notifiable transaction management processes to ensure compliance with corporate governance codes, with findings to be disclosed in the company’s annual report.

Mexan Limited Updates VSD Special Dividend Payment Date
Apr 3, 2025

Mexan Limited has announced an update regarding their VSD Special Dividend, which is set at HKD 0.06 per share. The payment date for this special dividend has been updated to 29 April 2025, with the record date being 11 April 2025. This announcement may impact shareholders and stakeholders as it provides updated information on the dividend payout schedule.

Mexan Limited Completes Major Disposal and Announces Special Dividend
Apr 2, 2025

Mexan Limited has announced the completion of a very substantial disposal (VSD) and the subsequent distribution of a special dividend to its shareholders. The VSD completion, approved by shareholders, signifies a strategic move for the company, potentially impacting its financial standing and shareholder value. The special dividend will be distributed on April 29, 2025, to shareholders registered by April 11, 2025, reflecting the company’s commitment to returning value to its investors.

Mexan Limited Updates VSD Special Dividend Payment Date
Apr 2, 2025

Mexan Limited has announced an update to its previously declared VSD Special Dividend, with a payment of HKD 0.06 per share. The ex-dividend date is set for April 8, 2025, and the payment will be made on April 29, 2025, following shareholders’ approval on March 25, 2025. This announcement reflects Mexan Limited’s commitment to providing returns to its shareholders, potentially enhancing its attractiveness to investors and maintaining its competitive position in the market.

Mexan Limited Withdraws Proposed Special Dividend
Mar 26, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, announced the withdrawal of its proposed VSA Special Dividend. The decision follows the failure to pass Ordinary Resolution No. 3 at the Special General Meeting, which was a condition precedent for the VSA Completion. As a result, the VSA will not proceed, and the special dividend of HKD 0.06 per share will not be distributed, impacting shareholders who were anticipating this payout.

Mexan Limited Announces Special General Meeting Results
Mar 25, 2025

Mexan Limited held a Special General Meeting on March 25, 2025, where shareholders voted on several resolutions. The resolutions to approve the VSD and VSD Special Dividend were passed with overwhelming support, while the resolution to approve the VSA Sale and Purchase Agreement was not passed due to a lack of majority support. The outcome of these votes reflects the company’s strategic decisions and shareholder interests, impacting its future operations and financial strategies.

Mexan Limited Declares Special Dividend
Mar 25, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, has announced a special cash dividend of HKD 0.06 per share, termed as the VSD Special Dividend. This announcement, dated March 25, 2025, updates previous communications by specifying the record date as April 11, 2025, with the book closure period from April 10 to April 11, 2025. The ex-dividend date is set for April 8, 2025, and the payment date will be announced later. This move reflects Mexan Limited’s commitment to delivering shareholder value, potentially enhancing its market position and investor confidence.

Mexan Limited Announces Special General Meeting for Key Resolutions
Feb 25, 2025

Mexan Limited, a company incorporated in Bermuda, has announced a special general meeting to be held on March 25, 2025, in Hong Kong. The meeting will address several resolutions, including the approval of the VSD and VSA Sale and Purchase Agreements and the declaration of special dividends contingent on the completion of these agreements. These resolutions, if passed, will authorize directors to execute necessary actions to implement the agreements and dividends, potentially impacting the company’s financial operations and shareholder returns.

Mexan Limited Announces Special Cash Dividend Amid Major Transactions
Feb 25, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, has announced a special cash dividend of HKD 0.06 per share, pending shareholder approval on March 25, 2025. This announcement is part of a larger transaction involving a very substantial disposal and acquisition, which may impact the company’s financial positioning and provide returns to stakeholders.

Mexan Limited Announces Special Dividend Amid Strategic Transactions
Feb 25, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, has announced a special dividend of HKD 0.06 per share as part of a very substantial disposal and acquisition transaction. This update highlights the date of shareholders’ approval set for March 25, 2025, and outlines the forthcoming announcement of key dates related to the dividend distribution, signaling a strategic move that may impact the company’s financial structure and shareholder value.

Mexan Acquires Full Ownership to Streamline Operations and Strengthen Market Position
Feb 10, 2025

Mexan, a company involved in the trading of building materials and fit-out construction projects, has announced the reclassification of a notifiable transaction as a major transaction following the acquisition of full ownership of a target company. This acquisition, completed at a nominal cost, is strategically aimed at enhancing operational control and aligning with long-term goals in the construction industry. The move is expected to improve revenue and client base, despite a segment loss due to impairment losses. With the elimination of minority shareholder constraints, Mexan can implement effective turnaround strategies, supported by a growing client base and confirmed orders.

Mexan Limited Announces Major Transactions and Special Dividends
Feb 7, 2025

Mexan Limited has announced a very substantial disposal and acquisition, along with a connected transaction, which will culminate in a proposed declaration of VSD and VSA special dividends. The company declared a special dividend of HKD 0.06 per share, although the dates for shareholders’ approval and the payment schedule are yet to be announced. This announcement could significantly impact the company’s financial strategy and stakeholder returns.

Mexan Company Announces Strategic Transactions and Special Dividends
Feb 7, 2025

Mexan Company has announced agreements for a substantial disposal and a substantial acquisition, alongside connected transactions, with plans to declare special dividends contingent upon shareholder approval and completion of the transactions. These moves, involving the sale and purchase of properties and shares, have significant implications for the company’s financial positioning and require careful consideration by stakeholders due to the conditional nature of the transactions and potential impacts on share dividends.

Mexan Limited Announces Major Transactions and Special Dividend
Feb 7, 2025

Mexan Limited, a company listed on the Hong Kong Stock Exchange, has announced a very substantial disposal and acquisition, along with a connected transaction. As part of this transaction, the company plans to declare special dividends, specifically a VSA Special Dividend of HKD 0.06 per share. The announcement, made on February 7, 2025, outlines significant financial maneuvers that could impact stakeholders, although specific dates for shareholder approval, ex-dividend, and payment are yet to be disclosed.

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.