Kwoon Chung Bus Holdings Limited (0306) AI Stock Analysis

• Market Cap: HK$1.14B
• Dividend Yield: 0.84%
• Average Volume (3M): 235.38K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.18
• Revenue Growth: 20.74%
• EPS Growth: 296.14%
• Country: HK
• Employees: 4,580
• Sector: Industrials
• Sector Strength: 80
• Industry: Railroads
• EPS (TTM): 0.25
• Shares Outstanding: 476,776,820
• 10 Day Avg. Volume: 76,700
• 30 Day Avg. Volume: 235,384
• PEG Ratio: 0.02
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.30
• P/FCF Ratio: 4.51
• 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$2.50
• Price Target Upside: 4.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: HK$2.50 ▲(4.60% Upside)

Kwoon Chung Bus Holdings Limited's stock score is driven by solid financial performance and attractive valuation. The company's strong revenue growth and profitability improvements are significant positives. However, technical indicators suggest overbought conditions, which could lead to short-term volatility. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Kwoon Chung Bus Holdings Limited Business Overview & Revenue Model

Company Description

Kwoon Chung Bus Holdings Limited, an investment holding company, provides bus and bus-related services in Hong Kong, Macau, and Mainland China. It operates through five segments: Non-Franchised Bus, Limousine, Franchised Bus and Public Light Bus (PLB), Mainland China Business, and Others. The company offers non-franchised public bus services, such as local transport services, including student, employee, resident, tour, and contract hire services; and cross-boundary transport services between Mainland China and Hong Kong. It is also involved in the provision of hotel and tourism, limousine hire, franchised bus and PLB, management, motor vehicles repair and maintenance, and travel agency and tourism services. In addition, the company engages in holding and leasing of properties; and the development and management of a scenic area. As of March 31, 2022, it operated 1,301 non-franchised public buses; and 449 limousines. The company was founded in 1948 and is headquartered in Chai Wan, Hong Kong. Kwoon Chung Bus Holdings Limited is a subsidiary of Basic Faith Company Limited.

How the Company Makes Money

Kwoon Chung Bus Holdings Limited generates revenue primarily through its bus operations, which include the provision of scheduled public bus services and private charter services. The main revenue streams consist of passenger fares collected from commuters using its public transport services, as well as fees charged for charter services to corporations and organizations. The company may also earn income from advertising placements on its buses and at bus stations. Significant partnerships with the Hong Kong government and local transport authorities help secure contracts for public transport services, providing a stable revenue base. Additionally, the logistics and freight division contributes to the company's earnings by offering transportation solutions to businesses, further diversifying its revenue sources.

Kwoon Chung Bus Holdings Limited Financial Statement Overview

Summary

Kwoon Chung Bus Holdings Limited demonstrates a solid financial recovery with strong revenue growth and improved profitability. The balance sheet is stable with moderate leverage, while cash flow generation shows significant improvement. Continued focus on operational efficiency and cash flow optimization could further enhance financial performance.

Income Statement

Kwoon Chung Bus Holdings Limited shows a strong recovery in its income statement with a notable revenue growth rate of 9.32% in the latest year, indicating a positive trajectory. The gross profit margin improved to 26.16%, and the net profit margin increased to 5.03%, reflecting enhanced profitability. However, the EBIT margin of 10.81% and EBITDA margin of 21.89% suggest room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet reflects moderate stability with a debt-to-equity ratio of 0.85, indicating a balanced leverage position. The return on equity (ROE) improved to 6.16%, showing better utilization of equity. However, the equity ratio stands at 42.34%, suggesting a moderate reliance on debt financing. Overall, the balance sheet is stable but could benefit from further strengthening of equity.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth at 81.02%, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 3.35 suggests efficient conversion of earnings into cash. However, the free cash flow to net income ratio of 0.39 indicates that not all earnings are translating into free cash flow, highlighting potential areas for cash flow optimization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.31B	2.53B	2.10B	1.31B	1.20B	1.08B
Gross Profit	447.05M	661.89M	456.80M	35.63M	18.43M	-126.12M
EBITDA	356.91M	553.71M	466.05M	241.97M	218.10M	293.79M
Net Income	32.95M	127.13M	32.09M	-130.71M	-139.94M	-46.89M
Balance Sheet
Total Assets	4.76B	4.87B	4.58B	4.74B	5.11B	5.13B
Cash, Cash Equivalents and Short-Term Investments	444.67M	436.95M	304.10M	542.29M	669.04M	521.90M
Total Debt	1.76B	1.76B	1.64B	1.82B	1.98B	1.95B
Total Liabilities	2.74B	2.72B	2.56B	2.71B	2.87B	2.80B
Stockholders Equity	1.93B	2.06B	1.92B	1.91B	2.10B	2.18B
Cash Flow
Free Cash Flow	92.36M	167.18M	59.66M	97.62M	150.04M	164.54M
Operating Cash Flow	260.62M	425.75M	201.66M	184.84M	238.01M	287.11M
Investing Cash Flow	-174.40M	-231.30M	-183.18M	-96.24M	-85.55M	-127.27M
Financing Cash Flow	-49.77M	-51.44M	-244.58M	-211.65M	-9.40M	-71.28M

Kwoon Chung Bus Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.39
• 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 2.39 is below the 20-day moving average (MA) of 2.40, above the 50-day MA of 2.07, and above the 200-day MA of 1.65, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 59.63 is Neutral, neither overbought nor oversold. The STOCH value of 52.04 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
0306	69 Neutral	HK$1.14B	9.00	6.38%	0.84%	20.74%	296.14%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
MTRJF	―	$21.86B	9.79	9.61%	4.40%	―	―
KWO	―	€603.97M	18.01	1.61%	―	―	―
0077	69 Neutral	HK$130.52M	15.53	22.19%	8.33%	5.42%	―

Kwoon Chung Bus Holdings Limited Corporate Events

Kwoon Chung Bus Holdings Schedules AGM to Discuss Key Financial and Strategic Decisions

Kwoon Chung Bus Holdings Limited has announced its Annual General Meeting scheduled for August 29, 2025, where it will discuss several key agenda items. These include the approval of financial statements, declaration of a final dividend, re-election of directors, and granting a mandate to buy back up to 10% of its issued shares. This meeting is significant for stakeholders as it outlines the company’s financial health, governance decisions, and strategic moves to enhance shareholder value.

Kwoon Chung Bus Holdings Reports Strong Financial Growth and Board Changes

Kwoon Chung Bus Holdings Limited reported its financial results for the year ended March 31, 2025, showing a significant increase in revenue and profit compared to the previous year. The company achieved a revenue of HK$2,529,916,000 and a profit of HK$147,380,000, marking a substantial improvement from the previous year’s figures. The announcement also included the retirement of an independent non-executive director and changes in the composition of board committees, indicating a strategic shift in governance.

Kwoon Chung Bus Holdings Limited Announces Positive Profit Alert

Kwoon Chung Bus Holdings Limited has announced a positive profit alert, expecting a significant increase in consolidated profit before taxation for the year ending March 31, 2025, amounting to approximately HK$165 million, compared to HK$68 million the previous year. This increase is attributed to higher revenue across all business segments, stabilized international fuel prices, lower finance expenses due to a decrease in the Hong Kong Interbank Offered Rate, and effective cost control measures. The announcement indicates a strong operational performance and improved financial health for the company, potentially impacting its market position and stakeholder confidence.

Kwoon Chung Bus Holdings to Announce Year-End Results and Dividend Decision

Kwoon Chung Bus Holdings Limited has announced a board meeting scheduled for June 26, 2025, where the company’s financial results for the year ending March 31, 2025, will be approved for publication. Additionally, the meeting will consider the recommendation of a final dividend, which could have implications for shareholders and the company’s financial strategy.