Build King Holdings (0240) AI Stock Analysis

• Market Cap: HK$1.70B
• Dividend Yield: 12.15%
• Average Volume (3M): 289.86K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.24
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$1.50 ▼(-1.96% Downside)

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.

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 shows strong revenue growth and stable margins, supported by a robust balance sheet with low leverage. However, recent cash flow discrepancies highlight potential operational challenges. 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: Positive
• Last Price: 1.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0240, the sentiment is Positive. The current price of 1.53 is above the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.33, and above the 200-day MA of 1.06, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 79.28 is Negative, neither overbought nor oversold. The STOCH value of 77.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	―	HK$1.46B	6.39	13.63%	8.22%	44.58%	11.62%
0240	―	HK$1.70B	3.66	18.23%	12.15%	13.76%	25.01%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1726	―	HK$1.39B	―	-68.32%	―	26.40%	-6.44%
0711	―	HK$822.23M	-2.88	-11.69%	―	3.14%	-480.05%
1683	―	HK$1.03B	―	-8.55%	―	-37.55%	-1727.78%

Build King Holdings Corporate Events

Build King Holdings Reports Stable Interim Financial Results for 2025

Build King Holdings Limited announced its interim financial results for the six months ending June 30, 2025, reporting a revenue of HK$6,900 million and a profit attributable to owners of HK$179 million. The company declared an interim dividend of HK4 cents per share, reflecting a stable financial performance with a slight increase in equity per share by 1%, despite a decrease in gross profit compared to the previous year.

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 to Review Interim Results and Dividend

Build King Holdings Limited has announced a board meeting scheduled for August 26, 2025, to approve the interim results for the first half of the year and consider the payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and potential dividends, impacting stakeholders’ expectations and the company’s market positioning.