Yau Lee Holdings Limited (0406) AI Stock Analysis

• Market Cap: HK$337.30M
• Dividend Yield: 6.58%
• Average Volume (3M): 16.17K
• Price to Earnings (P/E): 6.7
• Beta (1Y): 0.04
• Revenue Growth: 22.80%
• EPS Growth: -18.34%
• Country: HK
• Employees: 4,100
• Sector: Industrials
• Sector Strength: 88
• Industry: Engineering & Construction
• EPS (TTM): -0.28
• Shares Outstanding: 438,053,600
• 10 Day Avg. Volume: 35,200
• 30 Day Avg. Volume: 16,166
• PEG Ratio: -0.33
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.74
• 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: 61 Neutral
• Price Target: ―

Yau Lee Holdings Limited shows moderate financial performance with notable revenue growth but struggles with operational efficiency and cash flow management. Technically, the stock lacks strong momentum, trading close to its short-term moving averages. However, the stock offers a compelling valuation with a low P/E ratio and high dividend yield, compensating for operational challenges. Overall, these factors result in a balanced stock score.

Yau Lee Holdings Limited Business Overview & Revenue Model

Company Description

Yau Lee Holdings Limited is a diversified construction and property services company based in Hong Kong. It operates in several sectors including construction, electrical and mechanical engineering, and property development. The company offers a comprehensive range of services, from building construction and civil engineering to facilities management and environmental solutions, catering primarily to the Hong Kong and Macau markets.

How the Company Makes Money

Yau Lee Holdings Limited generates revenue through its diverse operations in the construction and engineering sectors. The primary revenue stream comes from construction contracts, which include building, civil engineering, and renovation projects. The company also earns from its electrical and mechanical engineering services, offering solutions for building systems. Additional income is derived from property development projects and sales, as well as from facilities management services. Strategic partnerships and collaborations with other construction firms and technology providers enhance its service offerings and market reach, contributing to its earnings.

Yau Lee Holdings Limited Financial Statement Overview

Summary

Yau Lee Holdings Limited demonstrates moderate revenue growth with some profitability improvements. However, operational margins and cash flow management remain areas of concern. The balance sheet is stable, but with moderate leverage and low return on equity. Overall, the company needs to focus on improving operational efficiencies and cash flow management to enhance financial health.

Income Statement

Yau Lee Holdings Limited shows a moderate performance in their income statement. The gross profit margin is around 8.7% for the latest year, which indicates efficiency in managing production costs. Net profit margin improved to 0.86% from 0.74% in the previous year, reflecting slight improvement in profitability. The revenue growth rate is 16.84%, indicating strong growth. However, EBIT and EBITDA margins are relatively low at 2% and 2.91% respectively, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.54, indicating moderate leverage, and a slight decrease from the previous year. Return on equity is low at 4.46%, showing limited profitability for shareholders. The equity ratio stands at 26.29%, suggesting a reasonable proportion of assets financed by equity. Overall, the balance sheet indicates moderate financial health with some concerns over leverage and profitability.

Cash Flow

Cash flow analysis reveals challenges in liquidity management. Operating cash flow is negative, indicating operational challenges, and free cash flow is significantly negative, driven by high capital expenditures. The free cash flow to net income ratio is negative, suggesting cash flow issues in covering net income. There is a need for improved cash flow management to ensure sustainability.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	7.81B	6.69B	6.73B	6.79B	6.69B
Gross Profit	682.48M	552.31M	659.23M	575.68M	459.76M
EBITDA	226.98M	193.36M	211.00M	288.80M	96.28M
Net Income	67.09M	49.64M	68.19M	150.43M	-41.56M
Balance Sheet
Total Assets	5.73B	4.85B	4.74B	5.11B	5.05B
Cash, Cash Equivalents and Short-Term Investments	905.59M	742.58M	934.31M	650.75M	570.57M
Total Debt	2.31B	1.38B	1.35B	1.76B	2.29B
Total Liabilities	4.22B	3.35B	3.20B	3.63B	3.77B
Stockholders Equity	1.51B	1.51B	1.54B	1.48B	1.28B
Cash Flow
Free Cash Flow	-623.19M	-285.56M	750.49M	656.70M	34.59M
Operating Cash Flow	-463.32M	-237.30M	813.44M	677.19M	50.00M
Investing Cash Flow	-148.43M	-26.21M	-20.28M	15.52M	-49.28M
Financing Cash Flow	791.25M	25.95M	-517.72M	-627.56M	-170.52M

Yau Lee Holdings Limited Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0406, the sentiment is Negative. The current price of 0.76 is below the 20-day moving average (MA) of 0.78, below the 50-day MA of 0.83, and below the 200-day MA of 0.94, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 34.90 is Neutral, neither overbought nor oversold. The STOCH value of 16.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1109	76 Outperform	$205.73B	7.42	9.66%	5.03%	9.97%	-19.80%
1038	73 Outperform	$132.21B	17.19	6.62%	4.73%	-16.64%	1.10%
0083	69 Neutral	HK$82.81B	21.78	2.17%	6.41%	-30.38%	-43.73%
0688	67 Neutral	HK$148.85B	8.78	4.15%	2.11%	-10.21%	-40.22%
0406	61 Neutral	HK$337.30M	6.72	-6.86%	6.58%	22.80%	-18.34%
Sector *	58 Neutral	HK$13.96B	4.77	-2.71%	5.86%	3.74%	-52.98%
0004	55 Neutral	$68.30B	―	-2.30%	1.74%	-36.07%	-441.20%