Hanison Construction Holdings (0896) AI Stock Analysis

• Market Cap: HK$284.36M
• Dividend Yield: 24%
• Average Volume (3M): 127.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: 23.10%
• EPS Growth: -37.74%
• Country: HK
• Employees: 548
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): -0.10
• Shares Outstanding: 1,073,074,700
• 10 Day Avg. Volume: 108,339
• 30 Day Avg. Volume: 127,917
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 92.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The overall stock score of 47 reflects significant financial performance challenges, including negative profitability and cash flow issues. Technical analysis indicates a bearish trend, while valuation metrics are unattractive due to a negative P/E ratio and lack of dividend yield. These factors collectively suggest a cautious outlook for the stock.

Hanison Construction Holdings Business Overview & Revenue Model

Company Description

Hanison Construction Holdings Limited, an investment holding company, engages in the construction business in Hong Kong. It operates through seven segments: Construction; Interior and Renovation Works; Design, Supply and Installation of Building Materials; Sales of Health Products; Property Investment; Property Development; and Provision of Property Agency and Management Services. The company operates as a builder for residential, commercial, and industrial properties, as well as educational and recreational facilities; and provides design-and-build services. It is also involved in supplying and installing of building materials, such as kitchen cabinets, timber flooring, engineering flooring, suspended ceiling systems, metal cladding systems, fire rated enclosure systems, firex boards, and poly boards to developers and main contractors; and supplying plumbing pipes and tubes, fittings, and other related accessories, including galvanized pipes, black pipes, stainless steel pipes and tubes, and polyethylene pipes. In addition, the company engages in the maintenance and renovation of clubhouses, shopping arcades, office premises, residential properties, industrial buildings, and institutional facilities; and property/project development consisting of land acquisition/feasibility study, design, construction, sales, and marketing services. Further, it provides property agency and management services, such as property management, rental collection, agency, and leasing services; and sells health supplements, health care equipment, and traditional Chinese medicine. Additionally, the company provides plant maintenance services. Hanison Construction Holdings Limited was founded in 1989 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

Hanison Construction Holdings generates revenue through multiple streams, primarily from its construction projects and property developments. The company undertakes contracts for public and private sector clients, which include infrastructure works, residential buildings, and commercial developments. Revenue is recognized based on the progress of construction contracts, typically involving milestone payments. In addition to construction, Hanison also profits from selling and leasing developed properties. The company may engage in joint ventures or partnerships with other firms to undertake larger projects, which can enhance its market reach and profitability. Moreover, Hanison's focus on sustainability and innovation may lead to additional funding opportunities and partnerships in green building initiatives, further contributing to its earnings.

Hanison Construction Holdings Financial Statement Overview

Summary

Hanison Construction Holdings is facing significant profitability and cash flow challenges, with negative margins and cash flows. Despite a slight revenue growth, the company struggles with operational efficiency and leverage. The balance sheet is relatively stable, but the negative return on equity and cash flow issues pose significant risks.

Income Statement

The company has shown a modest revenue growth rate of 2.48% in the latest year, but profitability metrics are concerning. The gross profit margin has decreased, and both the net profit margin and EBIT margin are negative, indicating operational challenges. The declining EBITDA margin further highlights profitability issues.

Balance Sheet

The debt-to-equity ratio has increased slightly, indicating a moderate level of leverage. The return on equity is negative, reflecting the company's struggles to generate returns for shareholders. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

The company is experiencing negative operating and free cash flows, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is slightly positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.94B	1.99B	1.61B	1.23B	1.44B	1.45B
Gross Profit	134.18M	124.47M	119.86M	114.83M	139.32M	137.24M
EBITDA	55.68M	-227.05M	-119.68M	104.25M	229.03M	371.59M
Net Income	-301.01M	-295.30M	-216.01M	-38.43M	154.34M	274.99M
Balance Sheet
Total Assets	6.08B	5.97B	6.23B	6.16B	6.72B	8.13B
Cash, Cash Equivalents and Short-Term Investments	356.23M	478.01M	441.75M	399.89M	602.87M	706.83M
Total Debt	1.94B	1.94B	1.89B	1.53B	1.80B	3.19B
Total Liabilities	2.50B	2.50B	2.46B	2.09B	2.50B	3.99B
Stockholders Equity	3.58B	3.46B	3.77B	4.07B	4.22B	4.14B
Cash Flow
Free Cash Flow	-364.25M	-361.36M	-215.90M	-171.54M	-179.80M	-851.71M
Operating Cash Flow	-348.48M	-357.91M	-202.28M	-142.63M	-178.52M	-844.41M
Investing Cash Flow	131.91M	344.21M	-18.75M	300.23M	1.21B	764.88M
Financing Cash Flow	221.69M	50.00M	265.56M	-367.45M	-1.13B	539.78M

Hanison Construction Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Positive
• 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:0896, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.26, and below the 200-day MA of 0.28, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 31.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0896.

Hanison Construction Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1447	72 Outperform	HK$204.00M	8.39	6.66%	13.73%	13.59%	-12.52%
1582	65 Neutral	HK$197.50M	4.69	6.32%	8.35%	27.42%	-32.34%
Sector *	64 Neutral	$10.75B	15.69	7.62%	2.01%	2.75%	-15.14%
2863	56 Neutral	HK$250.05M	―	-1.47%	8.00%	0.94%	82.30%
1707	51 Neutral	HK$173.04M	―	-9.58%	―	3.97%	14.02%
0896	47 Neutral	HK$284.36M	―	-8.17%	24.00%	23.10%	-37.74%
1559	41 Neutral	HK$119.63M	―	-54.25%	―	-51.67%	36.70%

Hanison Construction Holdings Corporate Events

Hanison Construction Holdings Announces AGM with Key Resolutions

Hanison Construction Holdings Limited has announced its Annual General Meeting (AGM) scheduled for August 19, 2025, in Hong Kong. The AGM will address several key business items, including the adoption of financial statements, re-election of directors, and the appointment of auditors. Additionally, the meeting will consider resolutions related to the issuance of shares and other securities, reflecting the company’s strategic focus on expanding its capital base and enhancing shareholder value.

Hanison Construction Reports Revenue Growth but Faces Financial Challenges

Hanison Construction Holdings Limited reported a 23.1% increase in revenue for the year ended 31 March 2025, reaching HK$1,985.3 million, primarily driven by its Construction Division. Despite this revenue growth, the company faced a consolidated loss of HK$295.3 million, attributed to a significant revaluation loss of properties and interest expenses. The board decided against declaring a second interim dividend, reflecting the financial challenges faced due to the downturn in the property market.

Hanison Construction Holdings to Announce Year-End Results and Dividend Consideration

Hanison Construction Holdings Limited has announced that its board of directors will meet on June 27, 2025, to approve the company’s final results for the fiscal year ending March 31, 2025, and to consider the payment of a dividend. This meeting is significant as it will determine the financial outcomes and potential shareholder returns, impacting the company’s market positioning and stakeholder interests.