Build King Holdings (0240) AI Stock Analysis

• Market Cap: HK$1.63B
• Dividend Yield: 7.44%
• Average Volume (3M): 666.89K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.25
• Revenue Growth: 13.76%
• EPS Growth: 25.01%
• Country: HK
• Employees: 3,782
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): 0.14
• Shares Outstanding: 1,241,878,000
• 10 Day Avg. Volume: 676,025
• 30 Day Avg. Volume: 666,886
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$1.50
• Price Target Upside: 14.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: HK$1.50 ▲(14.50% Upside)

Build King Holdings is well-positioned with strong financial performance and attractive valuation metrics. The stock's positive technical indicators further support its potential for growth. However, the company should address cash flow management to ensure sustainable long-term success.

Build King Holdings Business Overview & Revenue Model

Company Description

Build King Holdings (0240) is a Hong Kong-based investment holding company engaged in civil engineering and construction services. The company operates through several segments, including construction, environmental services, and infrastructure investment. Its core services encompass building construction, civil engineering works, and environmental engineering, primarily focusing on public and private sector projects in Hong Kong and the surrounding region.

How the Company Makes Money

Build King Holdings makes money primarily through its construction segment, which involves undertaking large-scale infrastructure and building projects. These projects are typically commissioned by government bodies and private developers, providing the company with a steady stream of revenue through contracted construction services. Additionally, the company earns income from its environmental services, which include waste management and treatment solutions, as well as infrastructure investments that yield returns over time. Strategic partnerships with government entities and private sector clients play a significant role in securing contracts and sustaining its revenue flow.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.37B	12.51B	12.42B	10.03B	7.63B
Gross Profit	1.16B	1.31B	980.90M	739.60M	688.64M
EBITDA	666.91M	788.26M	766.46M	510.21M	424.46M
Net Income	434.00M	473.52M	434.33M	294.54M	440.91M
Balance Sheet
Total Assets	8.48B	8.32B	7.32B	7.13B	5.44B
Cash, Cash Equivalents and Short-Term Investments	2.11B	1.39B	2.46B	2.23B	2.12B
Total Debt	125.03M	307.26M	382.66M	858.50M	571.37M
Total Liabilities	5.80B	5.92B	5.19B	5.32B	3.85B
Stockholders Equity	2.66B	2.38B	2.09B	1.77B	1.58B
Cash Flow
Free Cash Flow	420.71M	199.04M	998.06M	-245.30M	-107.15M
Operating Cash Flow	505.69M	253.78M	1.12B	414.00K	125.10M
Investing Cash Flow	22.52M	-687.48M	-246.02M	103.61M	-378.82M
Financing Cash Flow	-313.34M	-282.38M	-589.11M	174.24M	65.34M

Build King Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.31 is above the 20-day moving average (MA) of 1.24, above the 50-day MA of 1.21, and above the 200-day MA of 0.98, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 63.20 is Neutral, neither overbought nor oversold. The STOCH value of 93.06 is Negative, 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
0240	75 Outperform	HK$1.63B	3.45	18.23%	7.44%	13.76%	25.01%
Sector *	64 Neutral	$10.85B	16.20	8.89%	1.97%	2.67%	-15.04%
1372	―	HK$739.40M	―	-210.39%	―	―	―
1627	79 Outperform	HK$1.44B	6.12	13.63%	6.85%	44.58%	11.62%
1726	53 Neutral	HK$1.67B	―	-62.57%	―	37.20%	5.04%
0711	48 Neutral	HK$822.23M	―	-11.69%	5.01%	3.14%	-480.05%
1683	43 Neutral	HK$1.21B	106.67	-9.39%	―	-35.62%	-481.82%

Build King Holdings Corporate Events

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.

Build King Holdings Announces Successful AGM Resolutions

Build King Holdings Limited announced that all resolutions proposed at its Annual General Meeting (AGM) held on May 21, 2025, were passed by shareholders. These resolutions included the approval of financial statements, declaration of dividends, re-election of directors, and granting of mandates for share allotment and repurchase. The successful passing of these resolutions reflects shareholder support and positions the company for continued operational stability and strategic flexibility.