Cheuk Nang (Holdings) Limited (0131) AI Stock Analysis

• Market Cap: HK$985.54M
• Dividend Yield: 5.96%
• Average Volume (3M): 35.04K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.16
• Revenue Growth: 92.46%
• EPS Growth: -154.18%
• Country: HK
• Employees: 44
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Development
• EPS (TTM): -0.29
• Shares Outstanding: 652,676,760
• 10 Day Avg. Volume: 49,872
• 30 Day Avg. Volume: 35,039
• PEG Ratio: -0.51
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -17.80
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: HK$1.50 ▼(-0.66%Downside)

Cheuk Nang (Holdings) Limited demonstrates strong financial performance with excellent revenue growth and a solid balance sheet, making it a stable investment. The technical indicators suggest positive momentum, although the valuation is hampered by a negative P/E ratio. The high dividend yield tempers some valuation concerns, providing an attractive income stream.

Cheuk Nang (Holdings) Limited Business Overview & Revenue Model

Company Description

Cheuk Nang (Holdings) Limited is a Hong Kong-based investment holding company primarily engaged in property development and investment. The company focuses on the high-end property sector, offering luxury residential and commercial properties. Its operations are mainly concentrated in Hong Kong but also extend to other regions, including Macau and Mainland China. Cheuk Nang (Holdings) Limited is recognized for its development of premium real estate projects, catering to affluent clients seeking exclusive properties.

How the Company Makes Money

Cheuk Nang (Holdings) Limited generates revenue primarily through the sale and leasing of luxury residential and commercial properties. The company strategically invests in premium real estate projects, aiming to capitalize on property value appreciation and high rental yields from its upscale developments. It benefits from the robust demand for luxury properties in its operating regions, particularly in Hong Kong, Macau, and Mainland China. Additionally, the company may engage in strategic partnerships or joint ventures to expand its project portfolio and enhance revenue streams. Fluctuations in property market conditions, interest rates, and economic factors in these regions can significantly impact the company's earnings.

Cheuk Nang (Holdings) Limited Financial Statement Overview

Summary

Cheuk Nang (Holdings) Limited shows strong revenue growth and profitability, with a robust net profit margin and solid balance sheet characterized by low leverage. However, the negative EBITDA indicates challenges in managing operating expenses efficiently, which slightly impacts the overall financial performance score.

Income Statement

The company has shown a significant increase in revenue over the past year, with a growth rate of 316.36%. Gross profit margin improved to 56.78%, and the net profit margin is robust at 91.29%, mainly due to a substantial net income relative to revenue. However, the negative EBITDA indicates challenges in managing operating expenses efficiently.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 69.92%. The debt-to-equity ratio stands at 0.20, indicating low leverage and financial stability. Return on equity (ROE) is healthy at 2.57%, although there's room for improvement in asset utilization.

Cash Flow

The cash flow statement shows a remarkable turnaround in free cash flow, which has improved from -69.67 million to 206.07 million. The operating cash flow to net income ratio is strong, suggesting efficient cash generation relative to net income. However, the historical volatility in cash flows suggests potential challenges in maintaining consistent cash flow levels.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	187.26M	188.04M	45.16M	56.74M	994.59M	552.88M
Gross Profit	62.27M	106.80M	27.75M	8.74M	731.49M	370.60M
EBITDA	91.19M	-79.06M	-34.57M	-50.53M	611.48M	267.87M
Net Income	-190.75M	171.68M	21.20M	-149.19M	148.70M	47.70M
Balance Sheet
Total Assets	9.31B	9.56B	9.30B	9.35B	10.90B	11.07B
Cash, Cash Equivalents and Short-Term Investments	640.33M	220.24M	375.38M	418.64M	2.02B	1.70B
Total Debt	704.00M	1.35B	866.69M	872.91M	883.76M	1.28B
Total Liabilities	2.47B	2.67B	2.52B	2.48B	3.85B	4.34B
Stockholders Equity	6.62B	6.68B	6.57B	6.69B	6.87B	6.56B
Cash Flow
Free Cash Flow	-27.47M	206.07M	-69.67M	-1.61B	203.37M	270.23M
Operating Cash Flow	-152.41M	206.65M	-69.12M	-1.61B	203.69M	270.67M
Investing Cash Flow	74.68M	89.28M	72.09M	26.39M	1.01B	524.58M
Financing Cash Flow	42.78M	258.24M	-20.48M	-6.92M	-473.92M	85.71M

Cheuk Nang (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.51
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0131, the sentiment is Positive. The current price of 1.51 is above the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.47, and below the 200-day MA of 1.59, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0131.

Cheuk Nang (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8030	64 Neutral	HK$797.17M	5.31	48.79%	―	48.83%	11.99%
0131	59 Neutral	HK$985.54M	6.08	-2.79%	5.96%	92.46%	-154.18%
0160	55 Neutral	HK$770.86M	―	-6.26%	5.84%	-27.39%	-196.24%
Sector *	53 Neutral	$1.21B	3.28	-0.13%	7.06%	-1.64%	-127.47%
0147	42 Neutral	HK$1.02B	―		―	―	―
1638	41 Neutral	€1.09B	―		―	-56.67%	-41.38%
1238	38 Underperform	HK$1.26B	―	-16.13%	―	10.08%	-118.45%

Cheuk Nang (Holdings) Limited Corporate Events

Cheuk Nang Reports Interim Loss Amidst Property Market Challenges

Cheuk Nang (Holdings) Limited reported an unaudited consolidated loss of HK$34,919,000 for the six months ended December 31, 2024, compared to a profit in the previous year. Despite challenges in the Hong Kong property market, the company has seen satisfactory rental results in some projects. In China, the property market is showing positive momentum due to supportive government policies, with significant sales reported in Shenzhen. The Macau project is facing delays, with an appeal made to the Chief Executive regarding land development.

Cheuk Nang Announces Interim Dividend for 2024

Cheuk Nang (Holdings) Limited has announced an interim cash dividend of HKD 0.0225 per share for the six months ending December 31, 2024. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders and may influence its market positioning positively, signaling financial stability and confidence in future operations.