Kwoon Chung Bus Holdings Limited (0306) AI Stock Analysis

• Market Cap: HK$886.80M
• Dividend Yield: 1.09%
• Average Volume (3M): 478.28K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.17
• Revenue Growth: 45.42%
• EPS Growth: N/A
• Country: HK
• Employees: 4,580
• Sector: Industrials
• Sector Strength: 90
• Industry: Railroads
• EPS (TTM): 0.25
• Shares Outstanding: 476,776,820
• 10 Day Avg. Volume: 367,600
• 30 Day Avg. Volume: 478,279
• PEG Ratio: 10.12
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.65
• 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: 56 Neutral
• Price Target: ―

Kwoon Chung Bus Holdings Limited demonstrates a recovery in financial performance with strong revenue growth and improved profitability. However, challenges remain in terms of moderate leverage and cash flow fluctuations. The technical analysis shows positive long-term momentum. Despite these strengths, the stock's high P/E ratio suggests potential overvaluation, which weighs down the overall score.

Kwoon Chung Bus Holdings Limited Business Overview & Revenue Model

Company Description

Kwoon Chung Bus Holdings Limited (0306) is a Hong Kong-based company primarily engaged in the provision of public bus transportation services. It operates through several segments, including Non-franchised Bus, Franchised Bus, Limousine, and Hotel and Tourism-related Services. The company offers a wide range of transport solutions, including cross-boundary shuttle bus services, student and employee bus services, and tour services, catering to both local and international clients.

How the Company Makes Money

Kwoon Chung Bus Holdings Limited generates revenue through its diversified transportation services. The Non-franchised Bus segment is a significant contributor, providing tailor-made transport services for schools, corporations, and tourists, charging fees based on contracts and usage. The Franchised Bus segment earns income through regulated fare collections from passengers using scheduled public bus routes. The Limousine segment offers premium transport services, particularly for corporate clients and tourists, on a rental basis. Additionally, the company leverages its Hotel and Tourism-related Services segment by partnering with hotels and travel agencies to offer comprehensive travel packages and tours, thus earning commissions and service fees. These activities, alongside strategic partnerships and a focus on customer service, drive the company's financial performance.

Kwoon Chung Bus Holdings Limited Financial Statement Overview

Summary

Kwoon Chung Bus Holdings Limited shows signs of recovery with substantial revenue growth and improved profitability margins. However, the company faces challenges with moderate leverage and fluctuations in free cash flow, indicating a need for further improvements in cost management and cash flow consistency.

Income Statement

Kwoon Chung Bus Holdings Limited has demonstrated a significant recovery in revenue from 2023 to 2024 with a growth rate of 59.8%, which is a positive indicator. The gross profit margin improved to 21.8% in 2024 from 2.7% in 2023, showing enhanced profitability. However, the net profit margin, while positive at 1.5%, suggests room for improvement in cost management. The company also achieved a turnaround in EBIT, with an EBIT margin of 4.0% in 2024 compared to negative margins in prior years.

Balance Sheet

The company's debt-to-equity ratio stands at 0.86, indicating moderate leverage. The equity ratio of 42.0% reflects a stable capital structure, though slightly below the ideal threshold of 50%. Return on equity (ROE) improved to 1.7%, signaling a recovery in profitability, but remains low, suggesting limited returns for shareholders.

Cash Flow

Free cash flow decreased by 38.9% from 2023 to 2024, indicating potential challenges in generating cash. The operating cash flow to net income ratio is 6.3, highlighting strong cash generation capability relative to net income. However, the free cash flow to net income ratio of 1.86 suggests effective conversion of net income to cash, albeit with fluctuations in free cash flow.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	2.10B	1.31B	1.20B	1.08B	2.46B
Gross Profit	456.80M	35.63M	18.43M	-126.12M	322.47M
EBITDA	466.05M	241.97M	218.10M	293.79M	451.02M
Net Income	32.09M	-130.71M	-139.94M	-46.89M	20.17M
Balance Sheet
Total Assets	4.58B	4.74B	5.11B	5.13B	5.22B
Cash, Cash Equivalents and Short-Term Investments	304.10M	542.29M	669.04M	521.90M	431.74M
Total Debt	1.64B	1.82B	1.98B	1.95B	1.99B
Total Liabilities	2.56B	2.71B	2.87B	2.80B	2.90B
Stockholders Equity	1.92B	1.91B	2.10B	2.18B	2.16B
Cash Flow
Free Cash Flow	59.66M	97.62M	150.04M	164.54M	218.26M
Operating Cash Flow	201.66M	184.84M	238.01M	287.11M	486.40M
Investing Cash Flow	-183.18M	-96.24M	-85.55M	-127.27M	-255.93M
Financing Cash Flow	-244.58M	-211.65M	-9.40M	-71.28M	-110.36M

Kwoon Chung Bus Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0306, the sentiment is Positive. The current price of 1.84 is above the 20-day moving average (MA) of 1.83, above the 50-day MA of 1.59, and above the 200-day MA of 1.55, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 63.84 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0306.

Kwoon Chung Bus Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0388	76 Outperform	$537.05B	38.13	27.96%	2.31%	19.20%	24.01%
0062	73 Outperform	€4.63B	23.58	1.11%	5.65%	4.19%	-54.47%
0006	62 Neutral	HK$107.19B	17.52	6.95%	8.11%	-28.87%	1.93%
Sector *	58 Neutral	HK$14.11B	4.63	-3.01%	6.76%	3.67%	-54.16%
0306	56 Neutral	HK$886.80M	6.90	6.38%	1.09%	45.42%	―