Continental Holdings Limited (0513) AI Stock Analysis

• Market Cap: HK$88.12M
• Dividend Yield: N/A
• Average Volume (3M): 9.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: 62.55%
• EPS Growth: -0.69%
• Country: HK
• Employees: 451
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): -0.35
• Shares Outstanding: 683,118,300
• 10 Day Avg. Volume: 20,000
• 30 Day Avg. Volume: 9,220
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.07
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -3.10
• 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: 49 Neutral
• Price Target: HK$0.14 ▲(10.77% Upside)

The overall stock score reflects significant financial challenges, with declining revenues and profitability issues being major concerns. Technical analysis shows some bullish momentum, but overbought signals warrant caution. Valuation remains unattractive due to a negative P/E ratio.

Positive Factors

Diversified Revenue Streams

Continental Holdings Limited benefits from diversified revenue streams across construction and engineering sectors, reducing dependency on a single market and enhancing resilience against sector-specific downturns.

Strategic Partnerships

Strategic partnerships with government and private clients enable access to large-scale projects, providing stable revenue opportunities and reinforcing market position.

Infrastructure Investment

Investments in infrastructure projects offer potential for steady income and capital appreciation, supporting long-term financial stability and growth.

Negative Factors

Declining Revenue

A significant decline in revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term growth prospects.

Profitability Challenges

Severe profitability issues reflect operational inefficiencies and cost management challenges, threatening financial health and future investment capacity.

Cash Flow Difficulties

Negative cash flows highlight liquidity constraints, limiting the company's ability to fund operations and invest in growth, posing risks to financial stability.

Continental Holdings Limited Business Overview & Revenue Model

Company Description

Continental Holdings Limited, an investment holding company, designs, manufactures, markets, wholesales, retails, and trades in fine jewelries and diamonds. It provides fine jewelries in precious metal sets with diamonds, rubies, emeralds, sapphires, pearls, and other semiprecious stones. The company is also involved in the provision of management services; mineral reserves mining and exploration activities; trading of food and beverages; and property development and investment activities. It operates in Hong Kong, North America, Europe and the Middle East, and internationally. The company was founded in 1975 and is based in Hung Hom, Hong Kong. Continental Holdings Limited is a subsidiary of Tamar Investments Group Limited.

How the Company Makes Money

Continental Holdings Limited generates revenue through its diversified operations in the construction and engineering industries. The company's primary revenue streams include contracts for civil engineering projects, electrical and mechanical engineering services, and building construction projects. These contracts are typically secured through competitive bidding processes. Additionally, the company invests in infrastructure projects which can provide steady income through returns on investment. Property development projects contribute to revenue through the sale and leasing of developed properties. The company's involvement in environmental engineering also provides income through contracts focused on sustainable and eco-friendly engineering solutions. Strategic partnerships with government bodies and private sector clients further enhance its revenue generation capability, allowing the company to participate in large-scale and high-profile projects.

Continental Holdings Limited Financial Statement Overview

Summary

Continental Holdings Limited faces significant financial challenges, including declining revenue and profitability issues. The balance sheet shows moderate leverage, but declining equity and cash flow difficulties are major risks. Operational inefficiencies need addressing to stabilize finances.

Income Statement

Continental Holdings Limited has shown a declining revenue trend over the past few years, with total revenue dropping from 603.9M in 2022 to 360.4M in 2024. The company is facing significant profitability challenges, as indicated by negative gross and net profit margins in 2024. The net profit margin worsened from -21.6% in 2023 to -71.4% in 2024. Additionally, EBIT and EBITDA margins are deeply negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet indicates moderate leverage, with a debt-to-equity ratio of 0.58 in 2024. Stockholders' equity has decreased over the years, reflecting financial strain. The equity ratio remains relatively stable, suggesting a reasonable capital structure. However, the company should be cautious about increasing debt levels, as total debt rose slightly from the previous year.

Cash Flow

The cash flow position is concerning, with negative operating and free cash flows in 2024. The operating cash flow to net income ratio is negative, indicating cash flow challenges relative to earnings. Despite a slight improvement in free cash flow from 2023 to 2024, the company remains in a tight liquidity position, necessitating careful cash management.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	489.55M	360.40M	455.61M	603.93M	536.27M	420.31M
Gross Profit	-30.43M	-42.76M	66.25M	145.11M	116.19M	92.03M
EBITDA	-221.15M	-229.37M	-52.19M	33.18M	40.53M	-12.33M
Net Income	-242.59M	-257.30M	-98.29M	12.14M	19.89M	-15.34M
Balance Sheet
Total Assets	3.20B	3.37B	3.72B	3.87B	3.72B	3.46B
Cash, Cash Equivalents and Short-Term Investments	59.39M	51.68M	106.26M	147.90M	352.39M	481.72M
Total Debt	1.02B	1.06B	1.08B	1.05B	881.33M	775.42M
Total Liabilities	1.24B	1.39B	1.44B	1.42B	1.27B	1.09B
Stockholders Equity	1.80B	1.82B	2.08B	2.22B	2.24B	2.18B
Cash Flow
Free Cash Flow	125.63M	-39.24M	-60.99M	-305.28M	62.56M	-40.91M
Operating Cash Flow	128.57M	-36.30M	-58.59M	-303.20M	64.40M	-39.62M
Investing Cash Flow	11.30M	5.76M	-14.22M	-65.38M	-302.39M	-76.71M
Financing Cash Flow	-78.38M	-9.43M	19.29M	172.57M	105.88M	-31.86M

Continental Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.13
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0513, the sentiment is Negative. The current price of 0.13 is below the 20-day moving average (MA) of 0.14, below the 50-day MA of 0.14, and below the 200-day MA of 0.16, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.98 is Neutral, neither overbought nor oversold. The STOCH value of 30.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0513.

Continental Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8537	64 Neutral	HK$99.00M	22.92	3.66%	―	22.40%	84.62%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0513	49 Neutral	HK$88.12M	-0.34	-15.33%	―	62.55%	-0.69%
0417	48 Neutral	HK$231.74M	-1.22	-43.66%	―	-27.28%	47.40%
6838	47 Neutral	HK$130.80M	-3.01	-4.47%	9.26%	-4.08%	-196.66%
1856	45 Neutral	HK$648.46M	-10.08	-51.81%	―	-20.65%	-616.18%

Continental Holdings Limited Corporate Events

Continental Holdings Calls General Meeting to Approve Asset Disposal Agreement

Continental Holdings Limited has convened a general meeting of shareholders to vote on approving, ratifying and confirming a conditional sale and purchase agreement and a supplemental agreement related to the disposal of certain shares and an associated loan by its subsidiary, Continental Mining Holdings Limited, to Cubic Stone Holdings Limited. The board is also seeking shareholder authorization to empower one or two directors to execute all necessary documents, arrangements and possible amendments to implement and complete the transaction, signaling a potential restructuring or reallocation of assets that could affect the company’s portfolio and capital deployment once approved.

The most recent analyst rating on (HK:0513) stock is a Hold with a HK$0.14 price target. To see the full list of analyst forecasts on Continental Holdings Limited stock, see the HK:0513 Stock Forecast page.

Continental Holdings AGM Resolutions Unanimously Approved

Continental Holdings Limited announced that all resolutions proposed at their Annual General Meeting on December 15, 2025, were unanimously passed by shareholders. The resolutions included the re-election of directors, re-appointment of the independent auditor, and granting of general mandates to repurchase and issue shares. This unanimous approval reflects strong shareholder support and positions the company for continued stability and growth.

The most recent analyst rating on (HK:0513) stock is a Hold with a HK$0.14 price target. To see the full list of analyst forecasts on Continental Holdings Limited stock, see the HK:0513 Stock Forecast page.

Continental Holdings Announces Delay and Extension in Big Bonus Limited Disposal

Continental Holdings Limited has announced a delay in the dispatch of its Circular related to the disposal of its entire equity interest in Big Bonus Limited, now expected by February 9, 2026. Additionally, the Long Stop Date for fulfilling conditions of the Sale and Purchase Agreement has been extended to February 28, 2026, allowing more time for necessary conditions to be met, with all other terms remaining unchanged.

The most recent analyst rating on (HK:0513) stock is a Hold with a HK$0.14 price target. To see the full list of analyst forecasts on Continental Holdings Limited stock, see the HK:0513 Stock Forecast page.

Continental Holdings Limited Announces 2025 AGM Agenda

Continental Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for December 15, 2025, in Hong Kong. The AGM will address several key business items, including the review of the company’s financial statements, re-election of directors, and re-appointment of the independent auditor. Additionally, shareholders will consider resolutions related to the company’s authority to purchase its own shares, with a cap set at 10% of the total shares in issue. This meeting is crucial for stakeholders as it will determine the company’s governance and financial strategies moving forward.

Continental Holdings Reclassifies Subsidiary Disposal as Very Substantial

Continental Holdings Limited has announced a reclassification of its disposal of the entire equity interest in its subsidiary, Big Bonus Limited, as a very substantial disposal under the Hong Kong Listing Rules. This reclassification requires the company to seek shareholder approval, which will be addressed in an upcoming general meeting. Additionally, a supplemental agreement has been made to extend the completion date for this transaction until all conditions precedent are met.