Kwoon Chung Bus Holdings Limited (0306) AI Stock Analysis

• Market Cap: HK$1.37B
• Dividend Yield: 1.34%
• Average Volume (3M): 166.84K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.22
• Revenue Growth: 15.60%
• EPS Growth: 469.61%
• Country: HK
• Employees: 4,580
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.14
• Shares Outstanding: 476,776,820
• 10 Day Avg. Volume: 22,600
• 30 Day Avg. Volume: 166,840
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$3.50 ▲(21.95% Upside)

Kwoon Chung Bus Holdings Limited receives a solid overall score driven by strong financial performance and attractive valuation. The stock's bullish technical indicators are tempered by overbought signals, suggesting caution in the short term. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates the company's ability to expand its market presence and adapt to customer needs, supporting long-term business sustainability.

Cash Generation

Strong cash generation enhances financial flexibility, allowing the company to invest in growth opportunities and weather economic downturns.

Profitability Improvement

Improved profitability margins demonstrate effective cost management and operational efficiency, contributing to long-term financial health.

Negative Factors

Debt Reliance

Moderate reliance on debt can limit financial flexibility and increase risk, especially in volatile economic conditions.

Operational Efficiency

Lower operational margins indicate potential inefficiencies, which could hinder profitability and competitiveness in the long term.

Free Cash Flow Conversion

Inefficient conversion of earnings to free cash flow may limit the company's ability to fund growth initiatives and return capital to shareholders.

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 through multiple streams primarily focused on its bus transportation services. The company earns money from scheduled bus services that cater to the daily commuting needs of the public, which is a significant source of income. In addition to public transport, the company also engages in charter bus services for private events, corporate clients, and school transportation, which further diversifies its revenue. Partnerships with governmental bodies and local institutions for contract services enhance its earnings, as these arrangements often guarantee a steady flow of income. Additionally, Kwoon Chung may benefit from ancillary services, such as advertising on its buses and at bus stops, contributing to its overall revenue model.

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	458.71M	241.97M	218.10M	291.86M
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: 2.87
• 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:0306, the sentiment is Positive. The current price of 2.87 is above the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.47, and above the 200-day MA of 1.94, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 63.33 is Neutral, neither overbought nor oversold. The STOCH value of 48.34 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
0066	76 Outperform	HK$186.07B	10.66	9.59%	4.38%	-0.99%	80.58%
0306	71 Outperform	HK$1.37B	7.29	9.24%	1.34%	15.60%	469.61%
0062	67 Neutral	HK$5.75B	21.30	1.61%	7.37%	2.87%	-35.74%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0077	62 Neutral	HK$123.72M	189.58	2.23%	9.30%	6.83%	-91.46%

Kwoon Chung Bus Holdings Limited Corporate Events

Kwoon Chung Bus Holdings Announces Potential Equity Disposal in Tourism Subsidiary

Kwoon Chung Bus Holdings Limited has announced a non-legally binding agreement of intent for the potential disposal of 85.3% of its equity in Lixian Bipenggou Tourism Development Co., Ltd. This move involves selling shares to two purchasers, A’ba Dajiuzhai Tourism Group Corporation and Chengdu Xintianfu Cultural Tourism Development Co., Ltd. The potential disposal is part of the company’s strategic efforts to streamline its operations and focus on core business areas, potentially impacting its market positioning and stakeholder interests.

Kwoon Chung Bus Holdings Reports Strong Interim Financial Growth

Kwoon Chung Bus Holdings Limited announced its unaudited interim results for the six months ending September 30, 2025, reporting a significant increase in profit. The company’s revenue rose to HK$1,257,542,000, up from HK$1,112,211,000 in the same period the previous year, resulting in a gross profit of HK$288,379,000. The profit before tax surged to HK$69,820,000, a notable improvement from HK$10,407,000 in 2024, reflecting a strong operational performance. This financial growth indicates a positive trajectory for the company, enhancing its market position and potentially benefiting stakeholders.

Kwoon Chung Bus Holdings Announces Interim Dividend for 2026

Kwoon Chung Bus Holdings Limited has announced an interim dividend of HKD 0.04 per share for the financial year ending March 31, 2026. This announcement reflects the company’s ongoing commitment to providing value to its shareholders and may positively impact its market positioning by reinforcing investor confidence.

Kwoon Chung Bus Holdings Announces Special Interim Dividend

Kwoon Chung Bus Holdings Limited has announced a special interim dividend of HKD 0.06 per share for the financial year ending March 31, 2026. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, potentially impacting its market positioning positively.

Kwoon Chung Bus Holdings Explores Potential Subsidiary Disposal

Kwoon Chung Bus Holdings Limited announced that it is in preliminary discussions with independent third parties regarding the potential disposal of its equity interest in a non-wholly owned subsidiary in Sichuan Province, China. This potential transaction could be significant for the company, but as of now, no formal agreement has been reached, and the outcome remains uncertain. Stakeholders are advised to exercise caution as the disposal may or may not proceed.

Kwoon Chung Bus Holdings Expects Significant Profit Increase

Kwoon Chung Bus Holdings Limited has issued a positive profit alert, expecting a significant increase in consolidated profit before tax to approximately HK$70 million for the six months ending September 30, 2025, compared to HK$10 million in the previous period. This increase is attributed to higher passenger transport demand, reduced fuel costs, and lower finance expenses. The announcement highlights the company’s improved financial performance due to effective cost control measures and favorable market conditions.

Kwoon Chung Bus Holdings to Announce Interim Results and Dividend Decision

Kwoon Chung Bus Holdings Limited has announced a board meeting scheduled for November 26, 2025, to approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.