Yau Lee Holdings Limited (0406) AI Stock Analysis

• Market Cap: HK$332.92M
• Dividend Yield: 7.35%
• Average Volume (3M): 1.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.03
• Revenue Growth: 24.69%
• EPS Growth: -257.79%
• Country: HK
• Employees: 4,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.09
• Shares Outstanding: 438,053,600
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,266
• PEG Ratio: 0.02
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -0.90
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.50 ▼(-34.21% Downside)

Yau Lee Holdings Limited's overall stock score is primarily influenced by its financial performance and technical analysis. The company's financial instability, marked by high leverage and negative profitability, is a significant concern. Technical indicators also suggest bearish momentum. While the high dividend yield offers some appeal, the negative P/E ratio highlights ongoing financial challenges.

Positive Factors

Revenue Growth

The company has demonstrated a solid revenue growth trend, indicating strong demand for its services and effective market penetration strategies.

Strategic Partnerships

These partnerships enhance market presence and provide a steady pipeline of projects, contributing to long-term revenue stability and growth.

Sustainable Practices

Commitment to sustainability and innovation attracts clients and offers a competitive edge, aligning with global trends towards eco-friendly construction.

Negative Factors

High Leverage

Significant leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Profitability Challenges

Low profitability margins indicate operational inefficiencies and pressure on earnings, which could hinder long-term financial health.

Cash Flow Strain

Strained cash flow management limits the company's ability to fund operations and growth initiatives, posing a risk to financial stability.

Yau Lee Holdings Limited Business Overview & Revenue Model

Company Description

Yau Lee Holdings Limited, an investment holding company, engages in the construction business in Hong Kong, Macau, Singapore, and Mainland China. The company operates through Construction, Electrical and Mechanical Installation, Building Materials Supply, Property Investment and Development, and Hotel Operations segments. It contracts for various private developers and government institutions; and constructs resorts, hotels, and residential buildings. The company also provides architectural and engineering, theme painting, curtain wall and steel work, plumbing and drainage, GRC, GRG, GRP, and construction IT services. In addition, it offers construction IT services, including software development, project management, system development, and integration and IT outsourcing services. Further, the company trades in construction and building materials; provides a range of import/export services, such as applying for certificate of origin and 3C, cargo insurance agency, prepayment of import/export tax and charges, etc.; and invests in, develops, and operates residential, commercial, and industrial properties. Additionally, it offers building information modeling, and other virtual design and construction; electrical, mechanical, ventilation and air conditioning, fire, plumbing, and environmental engineering; energy optimization and environmental protection; water treatment; project management and consultancy; hotel management; patent licensing; and training services. The company is also involved in the design, installation, maintenance, renovation, and fitting-out of buildings; environmental protection related software and programming activities; manufacture and sale of precast products and building materials; distribution of books; provision of welding services for pipes and fillings, and lift repair and maintenance services; and trading of environmental technology products. Yau Lee Holdings Limited was founded in 1958 and is headquartered in Kowloon Bay, Hong Kong.

How the Company Makes Money

Yau Lee Holdings generates revenue through multiple streams primarily centered around its construction and engineering services. The company undertakes large-scale public and private sector projects, earning income from contracts for building and civil engineering works. Key revenue streams include general contracting, design and build services, and prefabrication solutions. The company often collaborates with government bodies, property developers, and private enterprises, which provides a stable flow of projects and contracts. Additionally, Yau Lee invests in green building technologies and sustainable construction practices, which can offer premium pricing on services and attract clients focused on environmentally-friendly solutions.

Yau Lee Holdings Limited Financial Statement Overview

Summary

Yau Lee Holdings Limited faces financial challenges across all major financial statements. Despite revenue growth, profitability and cash flow metrics are under pressure, and the company is highly leveraged. The balance sheet shows a high debt burden, and cash flow management is strained, indicating potential financial instability.

Income Statement

The income statement reveals a challenging financial period for Yau Lee Holdings Limited. Despite a revenue growth rate of 10.35% in the most recent year, the company experienced a significant decline in profitability, with a negative net profit margin of -1.03% and a gross profit margin of only 1.40%. The EBIT and EBITDA margins also decreased, indicating pressure on operational efficiency. These factors suggest difficulties in maintaining profitability amidst revenue growth.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 2.03, indicating significant leverage and potential financial risk. Return on equity is negative at -7.19%, reflecting the company's struggle to generate returns for shareholders. However, the equity ratio stands at 20.93%, suggesting a moderate level of equity financing relative to total assets. The high leverage poses a risk, but the equity ratio provides some stability.

Cash Flow

Cash flow analysis indicates negative operating and free cash flows, with a free cash flow growth rate of -4.69%. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. However, the free cash flow to net income ratio is 1.61, suggesting some ability to cover net losses with free cash flow. Overall, cash flow management appears strained, with significant room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.62B	9.62B	7.81B	6.69B	6.73B	6.79B
Gross Profit	134.94M	134.94M	682.48M	552.31M	659.23M	575.68M
EBITDA	-324.65M	150.21M	226.98M	185.12M	211.00M	280.95M
Net Income	-98.88M	-98.88M	67.09M	49.64M	68.19M	150.43M
Balance Sheet
Total Assets	6.57B	6.57B	5.73B	4.85B	4.74B	5.11B
Cash, Cash Equivalents and Short-Term Investments	718.65M	718.65M	905.59M	742.58M	934.31M	650.75M
Total Debt	2.79B	2.79B	2.31B	1.38B	1.35B	1.76B
Total Liabilities	5.20B	5.20B	4.22B	3.35B	3.20B	3.63B
Stockholders Equity	1.38B	1.38B	1.51B	1.51B	1.54B	1.48B
Cash Flow
Free Cash Flow	-450.67M	-450.67M	-623.19M	-285.56M	750.49M	656.70M
Operating Cash Flow	-280.08M	-280.08M	-463.32M	-237.30M	813.44M	677.19M
Investing Cash Flow	-148.55M	-133.15M	-148.43M	-26.21M	-20.28M	15.52M
Financing Cash Flow	410.25M	270.77M	791.25M	25.95M	-517.72M	-627.56M

Yau Lee Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0406, the sentiment is Positive. The current price of 0.76 is above the 20-day moving average (MA) of 0.72, above the 50-day MA of 0.71, and below the 200-day MA of 0.79, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 66.39 is Neutral, neither overbought nor oversold. The STOCH value of 81.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0406.

Yau Lee Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8188	69 Neutral	HK$486.06M	6.02	45.61%	8.65%	-6.68%	-25.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0924	59 Neutral	HK$225.00M	-18.15	-5.92%	―	13.28%	―
6063	48 Neutral	HK$446.00M	185.83	1.91%	―	-6.17%	-42.86%
0406	46 Neutral	HK$332.92M	-3.95	-5.67%	7.35%	24.69%	-257.79%
8305	46 Neutral	HK$510.93M	-82.89	-8.56%	―	-0.84%	72.06%

Yau Lee Holdings Limited Corporate Events

Yau Lee Holdings Reports Strong Interim Financial Results

Yau Lee Holdings Limited reported a significant increase in revenue and profit for the six months ending September 30, 2025, with revenue rising to HK$5.68 billion from HK$4.43 billion in the previous year. The company’s gross profit also saw an increase, and earnings per share improved to HK8.95 cents. This financial performance highlights the company’s strong market position and operational efficiency, potentially benefiting stakeholders by enhancing shareholder value and market confidence.

The most recent analyst rating on (HK:0406) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Yau Lee Holdings Limited stock, see the HK:0406 Stock Forecast page.

Yau Lee Holdings to Review Interim Financials and Dividend Plans

Yau Lee Holdings Limited has announced a board meeting scheduled for November 24, 2025, to discuss and approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the payment of an interim dividend and the draft announcement for these results, reflecting the company’s ongoing commitment to transparency and shareholder engagement.

The most recent analyst rating on (HK:0406) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Yau Lee Holdings Limited stock, see the HK:0406 Stock Forecast page.