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Build King Holdings (HK:0240)
:0240
Hong Kong Market
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Build King Holdings (0240) AI Stock Analysis

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HK:0240

Build King Holdings

(0240)

Rating:75Outperform
Price Target:
HK$1.50
▲(18.11%Upside)
Build King Holdings is supported by strong financial performance, solid technical indicators, and an attractive valuation. The company's robust revenue growth and low leverage are significant strengths, though attention is needed on cash flow management. Technical analysis shows bullish momentum, and the stock's valuation is compelling due to a low P/E ratio and high dividend yield.

Build King Holdings (0240) vs. iShares MSCI Hong Kong ETF (EWH)

Build King Holdings Business Overview & Revenue Model

Company DescriptionBuild 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 MoneyBuild 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 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
68
Positive
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
75
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.37B12.51B12.42B10.03B7.63B
Gross Profit1.16B1.31B980.90M739.60M688.64M
EBITDA666.91M788.26M766.46M510.21M424.46M
Net Income434.00M473.52M434.33M294.54M440.91M
Balance Sheet
Total Assets8.48B8.32B7.32B7.13B5.44B
Cash, Cash Equivalents and Short-Term Investments2.11B1.39B2.46B2.23B2.12B
Total Debt125.03M307.26M382.66M858.50M571.37M
Total Liabilities5.80B5.92B5.19B5.32B3.85B
Stockholders Equity2.66B2.38B2.09B1.77B1.58B
Cash Flow
Free Cash Flow420.71M199.04M998.06M-245.30M-107.15M
Operating Cash Flow505.69M253.78M1.12B414.00K125.10M
Investing Cash Flow22.52M-687.48M-246.02M103.61M-378.82M
Financing Cash Flow-313.34M-282.38M-589.11M174.24M65.34M

Build King Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.27
Price Trends
50DMA
1.14
Positive
100DMA
1.05
Positive
200DMA
0.94
Positive
Market Momentum
MACD
0.04
Positive
RSI
65.94
Neutral
STOCH
46.67
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 1.27 is above the 20-day moving average (MA) of 1.23, above the 50-day MA of 1.14, and above the 200-day MA of 0.94, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
HK$1.42B6.2113.63%7.04%5.06%30.15%
75
Outperform
HK$1.56B3.6117.23%7.67%14.88%-8.34%
66
Neutral
£2.71B11.984.22%3.38%2.19%-20.98%
56
Neutral
HK$794.51M-11.69%5.01%20.89%-296.52%
53
Neutral
HK$1.80B-62.57%37.20%5.04%
44
Neutral
HK$1.31B106.67-9.39%-35.62%-481.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0240
Build King Holdings
1.27
0.43
51.19%
HK:0711
Asia Allied Infrastructure Holdings Limited
0.43
-0.03
-6.52%
HK:1726
HKE Holdings Limited
1.67
-0.33
-16.50%
HK:1683
Hope Life International Holdings Ltd.
0.78
0.71
1014.29%
HK:1627
Able Engineering Holdings Ltd.
0.71
0.31
77.50%

Build King Holdings Corporate Events

Build King Holdings Announces Successful AGM Resolutions
May 21, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025