Build King Holdings (0240) AI Stock Analysis

• Market Cap: HK$1.38B
• Dividend Yield: 10.81%
• Average Volume (3M): 735.36K
• Price to Earnings (P/E): 3.2
• Beta (1Y): 0.25
• Revenue Growth: 14.88%
• EPS Growth: -8.34%
• Country: HK
• Employees: 3,782
• Sector: Real Estate
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): 0.35
• Shares Outstanding: 1,241,878,000
• 10 Day Avg. Volume: 673,176
• 30 Day Avg. Volume: 735,358
• PEG Ratio: 0.05
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.05
• 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: 74 Outperform
• Price Target: HK$1.00 ▼(-9.91%Downside)

Build King Holdings scores well due to its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest undervaluation and appeal for income investors. Financial performance shows healthy growth and stability, though cash flow management needs attention. Positive technical indicators further support a favorable outlook, despite a high RSI indicating possible short-term overbought conditions.

Build King Holdings Business Overview & Revenue Model

Company Description

Build King Holdings Limited (0240) is a leading construction and civil engineering company based in Hong Kong. The company is primarily engaged in the construction of buildings, roads, bridges, and other infrastructure projects. It offers a comprehensive range of services, including project management, design and build, and engineering solutions. Build King Holdings is known for its commitment to quality, safety, and sustainability in its projects across various sectors such as public works, commercial, and residential developments.

How the Company Makes Money

Build King Holdings generates revenue primarily through its construction and civil engineering services. The company's revenue model is centered around securing contracts for infrastructure and building projects, which include government contracts, private sector developments, and joint ventures. Key revenue streams include project management fees, construction fees, and engineering service fees. The company benefits from its strong reputation and expertise in large-scale projects, as well as its strategic partnerships and alliances with other construction firms and engineering companies. Additionally, Build King may engage in long-term maintenance contracts, providing consistent income beyond initial construction phases.

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.

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
	EBIT
524.09M	762.36M	574.71M	381.91M	333.97M
	EBITDA
666.91M	788.26M	766.46M	510.21M	424.46M
	Net Income Common Stockholders
434.00M	473.52M	434.33M	294.54M	440.91M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.11B	1.39B	2.46B	2.23B	2.12B
	Total Assets
8.48B	8.32B	7.32B	7.13B	5.44B
	Total Debt
125.03M	307.26M	382.66M	858.50M	571.37M
	Net Debt
-1.41B	-1.02B	-1.73B	-974.72M	-983.47M
	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: 1.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 1.11 is above the 20-day moving average (MA) of 1.06, above the 50-day MA of 1.03, and above the 200-day MA of 0.89, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 61.01 is Neutral, neither overbought nor oversold. The STOCH value of 51.85 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	80 Outperform	HK$1.28B	5.28	15.68%	7.81%	5.06%	30.15%
0240	74 Outperform	HK$1.38B	3.18	17.23%	10.81%	14.88%	-8.34%
Sector *	61 Neutral	$2.83B	10.89	0.42%	9.23%	5.94%	-21.26%
0711	56 Neutral	HK$797.56M	―	-11.14%	5.07%	20.89%	-296.52%
1683	51 Neutral	HK$1.37B	106.67	-9.39%	―	-35.62%	-377.27%
1726	46 Neutral	HK$2.02B	―	-62.57%	―	37.20%	5.04%

Build King Holdings Corporate Events

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.

Build King Holdings Announces 2025 Annual General Meeting

Build King Holdings Limited has announced its Annual General Meeting to be held on May 21, 2025, where key agenda items include the consideration of audited financial statements, declaration of dividends, re-election of directors, and re-appointment of auditors. Additionally, the meeting will address the authorization for directors to allot and issue shares, with certain limitations, which could impact the company’s capital structure and shareholder value.

Build King Holdings Announces Final Dividend for 2024

Build King Holdings Limited has announced a final ordinary cash dividend of HKD 0.075 per share for the financial year ending December 31, 2024. The dividend will be paid on June 11, 2025, following shareholder approval on May 21, 2025. This announcement reflects the company’s financial performance and commitment to returning value to its shareholders.

Build King Holdings Reports 2024 Financial Results with Increased Equity

Build King Holdings Limited announced its financial results for the year ended December 31, 2024, reporting a 12% increase in equity per share and a total equity of HK$2,662 million. The company achieved a group revenue of HK$14,369 million and a profit attributable to owners of HK$434 million, with a final dividend of HK7.5 cents per share and a special dividend of HK6.0 cents per share. Despite a decrease in gross profit and profit before tax compared to the previous year, the company maintained a strong financial position, indicating resilience in a competitive market.