Continental Holdings Limited (0513) AI Stock Analysis

• Market Cap: HK$109.30M
• Dividend Yield: N/A
• Average Volume (3M): 51.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: 26.85%
• EPS Growth: -96.08%
• Country: HK
• Employees: 451
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Luxury Goods
• EPS (TTM): -0.35
• Shares Outstanding: 683,118,300
• 10 Day Avg. Volume: 88,600
• 30 Day Avg. Volume: 51,500
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

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.

Continental Holdings Limited Business Overview & Revenue Model

Company Description

Continental Holdings Limited (0513) is a Hong Kong-based investment holding company primarily engaged in the construction and engineering sectors. The company operates through several subsidiaries, providing a range of services including civil engineering, electrical and mechanical engineering, and building construction. It also invests in infrastructure projects, property development, and environmental engineering services.

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 is experiencing significant financial challenges, evidenced by declining revenues and negative profitability margins. The balance sheet shows moderate leverage, but declining equity and cash flow issues are concerning. The company must address operational inefficiencies to stabilize its financial position.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	360.40M	455.61M	603.93M	536.27M	420.31M
Gross Profit	-42.76M	66.25M	145.11M	116.19M	92.03M
EBITDA	-229.37M	-52.19M	33.18M	40.53M	-12.33M
Net Income	-257.30M	-98.29M	12.14M	19.89M	-15.34M
Balance Sheet
Total Assets	3.37B	3.72B	3.87B	3.72B	3.46B
Cash, Cash Equivalents and Short-Term Investments	51.68M	106.26M	147.90M	352.39M	481.72M
Total Debt	1.05B	1.08B	1.05B	860.34M	775.42M
Total Liabilities	1.39B	1.44B	1.42B	1.27B	1.09B
Stockholders Equity	1.82B	2.08B	2.22B	2.24B	2.18B
Cash Flow
Free Cash Flow	-39.24M	-60.99M	-305.28M	62.56M	-40.91M
Operating Cash Flow	-36.30M	-58.59M	-303.20M	64.40M	-39.62M
Investing Cash Flow	5.76M	-14.22M	-65.38M	-302.39M	-76.71M
Financing Cash Flow	-9.43M	19.29M	172.57M	105.88M	-31.86M

Continental Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 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 0.16 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.19, and below the 200-day MA of 0.17, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 34.55 is Neutral, neither overbought nor oversold. The STOCH value of 32.77 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	62 Neutral	HK$71.28M	71.47	0.59%	―	-5.34%	-78.88%
Sector *	57 Neutral	HK$25.94B	4.53	-4.73%	5.53%	-0.79%	-51.25%
0417	50 Neutral	HK$159.48M	―	-43.57%	―	-35.50%	47.15%
3326	50 Neutral	HK$312.41M	32.50	1.54%	4.27%	-21.57%	-71.88%
0513	49 Neutral	HK$109.30M	―	-12.60%	―	26.85%	-96.08%
1856	47 Neutral	HK$522.37M	35.26	-35.55%	―	-39.83%	-351.13%
6838	46 Neutral	HK$156.00M	4.81	-2.08%	9.62%	-12.01%	-131.92%

Continental Holdings Limited Corporate Events

Continental Holdings Updates Share Option Schemes

Continental Holdings Limited has released a supplemental announcement regarding its share option schemes as outlined in its annual report for the year ended June 30, 2024. The announcement provides additional details on the 2010 and 2020 Share Option Schemes, noting that there are no mandatory performance targets or holding periods for options, though the Board may impose such requirements at its discretion. The 2020 scheme limits the number of shares issued to any participant within a 12-month period to 1% of the total shares, with stricter limits for substantial shareholders and independent non-executive directors. This supplemental information does not alter any other details in the annual report.