Neway Group Holdings Limited (0055) AI Stock Analysis

• Market Cap: HK$46.11M
• Dividend Yield: N/A
• Average Volume (3M): 41.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -19.09%
• EPS Growth: 8.02%
• Country: HK
• Employees: 940
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): -0.09
• Shares Outstanding: 253,359,450
• 10 Day Avg. Volume: 36,193
• 30 Day Avg. Volume: 41,810
• PEG Ratio: 0.10
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -0.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: HK$0.15 ▼(-16.67% Downside)

The overall stock score is primarily impacted by the company's weak financial performance and poor valuation metrics. The technical analysis indicates a bearish trend with oversold conditions, but this does not offset the significant financial and valuation concerns. The absence of earnings call insights and notable corporate events leaves these factors unaddressed.

Positive Factors

Diversified Revenue Streams

The company's diversified revenue streams across property investment, manufacturing, and entertainment provide resilience against sector-specific downturns, supporting long-term stability.

Equity Strength

A strong equity position relative to total assets offers financial resilience, providing a buffer against financial instability and supporting future growth opportunities.

Creative Industry Involvement

Engagement in the creative and multimedia sectors through subsidiaries can drive growth and innovation, leveraging the expanding entertainment market for sustained revenue.

Negative Factors

Declining Revenue

Continuous revenue decline and net losses indicate operational challenges, potentially hindering long-term growth and profitability unless strategic changes are implemented.

Rising Leverage

Increasing leverage can strain financial resources, limiting flexibility and increasing risk, which may impact the company's ability to invest in growth initiatives.

Negative Cash Flow

Negative operating cash flow reflects inefficiencies in cash generation, posing potential liquidity challenges and limiting the company's ability to fund operations and growth.

Neway Group Holdings Limited Business Overview & Revenue Model

Company Description

Neway Group Holdings Limited (0055) is a diversified investment holding company based in Hong Kong, primarily engaged in the manufacturing and trading of valves and related products for various industries, including oil and gas, power generation, and water supply. The company also operates in sectors such as construction and real estate, providing a range of services that encompass engineering and project management.

How the Company Makes Money

Neway Group Holdings Limited generates revenue through the sale of its manufactured products, primarily valves, which are essential components in industrial applications. The company's revenue model is primarily driven by direct sales to clients in key industries, including energy and utilities. Additionally, Neway benefits from long-term contracts and partnerships with major corporations, ensuring a steady stream of income. The construction and real estate segments also contribute to revenue through project management services and property development, enabling the company to diversify its income sources and mitigate risks associated with reliance on a single sector.

Neway Group Holdings Limited Financial Statement Overview

Summary

Neway Group Holdings Limited faces considerable financial challenges, with declining revenues, persistent net losses, and negative cash flows. The increasing leverage and negative profitability margins pose risks to financial stability. While the equity remains strong relative to total assets, the overall financial health is concerning.

Income Statement

The company has experienced declining revenue over recent years, with a negative revenue growth rate. Gross profit margins have also decreased, indicating challenges in maintaining profitability. Net profit margins are negative, as the company has been posting net losses. The EBIT and EBITDA margins are both negative, reflecting operational difficulties. Overall, the income statement shows a downward financial trajectory with increasing operational losses.

Balance Sheet

The balance sheet shows moderate stability, with a reasonable equity ratio indicating a fair level of equity financing. However, the debt-to-equity ratio has increased over time, suggesting rising leverage. Return on equity (ROE) is negative due to net losses, which is a concern. Despite the increasing leverage, the company's equity remains substantial compared to its total assets, providing some financial resilience.

Cash Flow

The cash flow statement highlights significant challenges, with operating cash flow turning negative in recent years, reflecting difficulty in generating cash from operations. Free cash flow growth is also negative, indicating potential liquidity issues. The ratios of operating and free cash flow to net income are unfavorable, pointing to inefficiencies in cash conversion and management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	455.35M	480.54M	548.69M	449.40M	623.58M	532.67M
Gross Profit	86.42M	93.99M	88.35M	94.29M	108.58M	133.05M
EBITDA	-28.69M	-32.43M	-34.10M	35.19M	30.08M	-46.41M
Net Income	-59.54M	-76.99M	-81.96M	-1.94M	-10.71M	-87.32M
Balance Sheet
Total Assets	1.07B	1.08B	1.07B	1.14B	1.16B	1.13B
Cash, Cash Equivalents and Short-Term Investments	191.92M	127.88M	135.56M	158.27M	173.70M	251.92M
Total Debt	199.26M	213.46M	146.92M	178.91M	123.65M	150.22M
Total Liabilities	453.38M	451.30M	345.35M	355.62M	324.25M	296.79M
Stockholders Equity	617.68M	629.61M	726.64M	791.97M	835.71M	833.20M
Cash Flow
Free Cash Flow	-41.71M	-60.56M	27.77M	-198.42M	-52.77M	4.59M
Operating Cash Flow	-31.22M	-51.18M	30.18M	-192.84M	-39.27M	42.26M
Investing Cash Flow	-26.79M	-24.09M	-17.00M	147.75M	6.55M	-31.71M
Financing Cash Flow	-3.66M	35.17M	-37.67M	30.33M	-28.40M	-26.91M

Neway Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0055, the sentiment is Negative. The current price of 0.18 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.18, and below the 200-day MA of 0.19, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.52 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0055.

Neway Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1841	53 Neutral	HK$88.00M	―	-3.56%	―	-14.40%	-180.62%
8416	50 Neutral	HK$35.40M	-6.22	-6.35%	―	-16.78%	-233.66%
8385	46 Neutral	HK$25.26M	―	―	―	-92.47%	14.17%
1884	45 Neutral	HK$58.85M	―	0.37%	―	-10.78%	―
0055	41 Neutral	HK$46.11M	-0.77	-9.19%	―	-19.09%	8.02%
8448	41 Neutral	HK$47.90M	77.42	8.43%	―	-6.56%	―

Neway Group Holdings Limited Corporate Events

Neway Group Announces Early Lease Termination

Neway Group Holdings Limited, a company incorporated in Bermuda, has announced the early termination of a lease agreement by its wholly-owned subsidiary. The termination, effective from September 30, 2025, involves derecognizing a right-of-use asset valued at approximately HK$1.7 million, which does not constitute a discloseable transaction under the Listing Rules. The tenant and landlord agreed on a compensation involving a two-month rent deduction.

Neway Group Holdings Limited Reports Interim Financial Results for 2025

Neway Group Holdings Limited reported its unaudited condensed consolidated results for the six months ending June 30, 2025, showing a decrease in total revenue from HK$199.2 million to HK$174 million compared to the same period last year. The company experienced a reduction in gross profit and reported a loss before taxation of HK$24.6 million, although the total comprehensive expense improved from the previous year’s figures, indicating potential stabilization in its financial performance.

Neway Group Holdings Issues Profit Warning for 1H 2025

Neway Group Holdings Limited has issued a profit warning, indicating an expected loss between HK$19.0 million and HK$34.0 million for the first half of 2025, a slight improvement from a loss of HK$40.1 million in the same period of 2024. The anticipated loss is primarily due to a fair value loss on investment properties and segment losses in its core business areas. Stakeholders are advised to exercise caution when dealing with the company’s shares.

Neway Group Announces Early Termination of Tenancy Agreement

Neway Group Holdings Limited announced the early termination of a tenancy agreement for its wholly-owned subsidiary, CTPHK, effective from August 31, 2025. The termination involves derecognizing a right-of-use asset valued at approximately HK$2.6 million, which does not constitute a discloseable transaction under the Hong Kong Listing Rules. The landlord agreed to deduct a one-month rent deposit as compensation for the early termination, and CTPHK is required to deliver vacant possession of the premises.