Build King Holdings (0240) AI Stock Analysis

• Market Cap: HK$1.73B
• Dividend Yield: 12.15%
• Average Volume (3M): 289.86K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.20
• Revenue Growth: 13.76%
• EPS Growth: 25.01%
• Country: HK
• Employees: 3,782
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.14
• Shares Outstanding: 1,241,878,000
• 10 Day Avg. Volume: 128,346
• 30 Day Avg. Volume: 289,864
• PEG Ratio: -0.33
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.08
• P/FCF Ratio: 2.69
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: HK$1.50 ▲(5.63% Upside)

Build King Holdings demonstrates strong financial stability and attractive valuation metrics, with a low P/E ratio and high dividend yield. The technical analysis supports a positive trend, though caution is advised due to overbought signals. The primary concern lies in cash flow management, which could impact long-term growth if not addressed.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, allowing the company to invest in growth opportunities without excessive leverage.

Margin Stability

Stable gross profit margins indicate effective cost management and pricing strategies, crucial for maintaining profitability in competitive markets.

Negative Factors

Cash Flow Volatility

Volatile cash flow can hinder the company's ability to fund operations and invest in growth, posing risks to financial health and strategic initiatives.

Net Income Decline

A decline in net income can pressure profitability and limit reinvestment capacity, affecting long-term growth prospects and shareholder returns.

Cash Conversion Challenges

Inconsistent cash conversion ratios suggest inefficiencies in turning profits into cash, potentially impacting liquidity and operational flexibility.

Build King Holdings Business Overview & Revenue Model

Company Description

Build King Holdings Limited, an investment holding company, engages in civil engineering works in the People's Republic of China and the Middle East. It constructs institutions/schools, and residential and commercial buildings, as well as undertakes fitting out, improvement, and alteration works for buildings. The company also undertakes environmental projects; foundation works; general civil works, including airport, drainage and water, landscaping, site formation, sports ground and park, and road and bridge works; marine works comprising general marine works and submarine pipelines; railway infrastructure and track works; structural steel works; and tunnel works. In addition, the company provides construction; marine engineering and transportation; sewage treatment; secretarial and nominee; electrical and mechanical engineering; and marine construction contracting services. Further, it supplies steam fuel. The company was founded in 1980 and is based in Kwun Tong, Hong Kong. Build King Holdings Limited is a subsidiary of Top Horizon Holdings Limited.

How the Company Makes Money

Build King Holdings generates revenue primarily through its construction and engineering projects. Key revenue streams include contracts for civil engineering works, building construction, and maintenance services. The company often engages in public sector projects, which are typically funded by government contracts, as well as private sector developments. Strategic partnerships with governmental bodies and private developers further bolster its revenue, alongside a focus on operational efficiency and project management to increase profitability. The company may also derive income from ancillary services related to construction, such as consultancy and project advisory.

Build King Holdings Financial Statement Overview

Summary

Build King Holdings displays strong revenue growth and stable margins, supported by a robust balance sheet with low leverage. However, recent cash flow discrepancies highlight potential operational challenges. Overall, the company maintains a healthy financial position but should focus on improving cash flow management to sustain long-term growth.

Income Statement

Build King Holdings has shown consistent revenue growth with a CAGR of 11.5% over the past five years. Gross profit margins have been stable, averaging around 9.5%. However, there was a slight decline in net income from 2023 to 2024, leading to a marginal decrease in net profit margin from 3.8% to 3.0%. EBIT and EBITDA margins have remained healthy, indicating efficient cost management despite competitive pressures.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.05 in 2024. This indicates a solid capital structure with minimal reliance on debt. Return on Equity (ROE) has improved to 16.3% in 2024, highlighting effective use of equity capital. The equity ratio stands at 31.4%, reflecting a balanced asset structure and financial stability.

Cash Flow

Free cash flow has experienced volatility, with a significant drop in 2024 due to zero reported operating and capital expenditures. Historically, the company had positive free cash flows, but recent figures raise concerns about cash generation efficiency. The operating cash flow to net income ratio has been inconsistent, suggesting challenges in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.80B	14.37B	12.51B	12.42B	10.03B	7.63B
Gross Profit	1.08B	1.16B	1.31B	980.90M	739.60M	688.64M
EBITDA	638.34M	666.91M	788.26M	748.82M	510.21M	560.35M
Net Income	464.36M	434.00M	473.52M	434.33M	294.54M	440.91M
Balance Sheet
Total Assets	8.21B	8.48B	8.32B	7.32B	7.13B	5.44B
Cash, Cash Equivalents and Short-Term Investments	2.08B	1.99B	1.39B	2.49B	2.23B	2.08B
Total Debt	177.30M	125.03M	307.26M	382.66M	858.50M	571.37M
Total Liabilities	5.52B	5.80B	5.92B	5.19B	5.32B	3.85B
Stockholders Equity	2.68B	2.66B	2.38B	2.09B	1.77B	1.58B
Cash Flow
Free Cash Flow	552.66M	420.71M	199.04M	998.06M	-245.30M	-107.15M
Operating Cash Flow	635.91M	520.24M	253.78M	1.12B	414.00K	125.10M
Investing Cash Flow	468.55M	22.52M	-687.48M	-246.02M	103.61M	-370.04M
Financing Cash Flow	-275.78M	-313.34M	-282.38M	-604.61M	156.74M	49.38M

Build King Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0240, the sentiment is Negative. The current price of 1.42 is above the 20-day moving average (MA) of 1.41, below the 50-day MA of 1.47, and above the 200-day MA of 1.22, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.20 is Neutral, neither overbought nor oversold. The STOCH value of 12.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0240.

Build King Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1627	80 Outperform	HK$1.36B	5.74	14.15%	9.09%	26.57%	-2.39%
0240	75 Outperform	HK$1.73B	3.72	18.23%	12.15%	13.76%	25.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	53 Neutral	HK$1.55B	-19.35	-68.32%	―	26.40%	-6.44%
0711	45 Neutral	HK$792.24M	15.52	2.28%	1.93%	0.97%	―
1372	43 Neutral	HK$977.30M	-76.77	-60.47%	―	-9.38%	88.33%
1683	41 Neutral	HK$653.18M	-11.95	-8.55%	―	-37.55%	-1727.78%

Build King Holdings Corporate Events

Build King Extends Lam Tei Quarry Sub-Contract to Support Transition to New Underground Project

Build King Holdings has announced that its joint venture, Kaden-Titan JV, has signed an extension agreement with Faith Oriental Investment Limited to prolong the performance period of its existing Lam Tei Quarry sub-contract to 30 September 2026, or a later agreed date. The extension aligns the sub-contract’s duration with the extended main contract between Faith Oriental and the Hong Kong Government and is intended to bridge the transition to a newly awarded underground quarry-cum-cavern development at Lam Tei, expected to start in 2026 and run for at least 13.5 years. Importantly, only the time period is being extended, with no change to the scope of works or pricing basis; of the approximately HK$694 million aggregate sub-contract price, about HK$521 million had been received as of 31 August 2025, and the remaining works are expected to stay within existing contract values. As there is no material change to the sub-contract’s terms under Hong Kong listing rules, no further independent shareholders’ approval or independent financial advice is required, underscoring continuity of revenue and operational visibility for Build King without triggering additional regulatory procedures.

The most recent analyst rating on (HK:0240) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Build King Holdings stock, see the HK:0240 Stock Forecast page.

Build King Wins Independent Shareholder Approval for 2026 Concrete Supply Framework with Wai Kee

Build King Holdings Limited announced that its independent shareholders have approved, by poll at a special general meeting held on 19 December 2025, the terms and proposed annual caps for transactions under the 2026 Framework Agreement with Wai Kee Holdings Limited for the continuing sale and purchase of ready-mixed concrete. With controlling shareholder Wai Kee, its associates, and Chairman Derek Zen abstaining from voting due to connected party status, all votes cast by independent shareholders supported the resolution, clearing a key regulatory hurdle for the company to continue its related-party concrete procurement arrangement, which underpins material supply stability for its construction operations and clarifies the governance framework for these ongoing connected transactions.

The most recent analyst rating on (HK:0240) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Build King Holdings stock, see the HK:0240 Stock Forecast page.

Build King Holdings Announces Special General Meeting for New Framework Agreement

Build King Holdings Limited has announced a Special General Meeting to be held on December 19, 2025, to approve the terms and proposed annual caps for transactions under a new framework agreement with Wai Kee Holdings Limited. This agreement pertains to the ongoing sale and purchase of ready mixed concrete, which is significant for the company’s operations and industry positioning, potentially impacting stakeholders by strengthening its market presence and operational capabilities.

The most recent analyst rating on (HK:0240) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Build King Holdings stock, see the HK:0240 Stock Forecast page.

Build King Holdings Renews Concrete Supply Agreement with Wai Kee

Build King Holdings Limited has entered into a new 2026 Framework Agreement with Wai Kee to purchase concrete for its construction projects from 2026 to 2028. This agreement, which renews the previous 2023 Framework Agreement, is crucial for ensuring a stable supply of concrete for the company’s ongoing and future projects. The agreement is subject to regulatory approval due to Wai Kee’s status as a majority shareholder, and the proposed transactions exceed certain financial thresholds, necessitating independent shareholder approval.

The most recent analyst rating on (HK:0240) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Build King Holdings stock, see the HK:0240 Stock Forecast page.

Build King Holdings Updates Nomination Committee Terms

Build King Holdings Limited, listed under stock code 00240, has amended the terms of reference for its Nomination Committee. The committee will consist of at least three members, primarily independent non-executive directors, with a requirement for gender diversity. Meetings will be held at least annually, and the company secretary will act as the committee’s secretary. These changes aim to enhance the governance structure and ensure effective decision-making within the company.

The most recent analyst rating on (HK:0240) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Build King Holdings stock, see the HK:0240 Stock Forecast page.

Build King Holdings Announces Board Composition and Committee Roles

Build King Holdings Limited, a company incorporated in Bermuda, has announced the composition of its board of directors, detailing the roles and functions of its executive, non-executive, and independent non-executive directors. The announcement outlines the membership of various board committees, including the Audit, Nomination, Remuneration, and Environmental, Social and Governance Committees, highlighting the leadership roles within these committees.

The most recent analyst rating on (HK:0240) stock is a Buy with a HK$1.50 price target. To see the full list of analyst forecasts on Build King Holdings stock, see the HK:0240 Stock Forecast page.