Hanison Construction Holdings (0896) AI Stock Analysis

• Market Cap: HK$279.00M
• Dividend Yield: N/A
• Average Volume (3M): 185.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.07
• Revenue Growth: -8.54%
• EPS Growth: -25.17%
• Country: HK
• Employees: 548
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 1,073,074,700
• 10 Day Avg. Volume: 346,971
• 30 Day Avg. Volume: 185,767
• PEG Ratio: -0.02
• Price to Book (P/B): 0.09
• Price to Sales (P/S): 0.15
• P/FCF Ratio: -0.82
• 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$0.25 ▼(-5.77% Downside)

The overall stock score is primarily impacted by the company's financial performance challenges, including negative profitability and cash flow issues. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to a negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Stable Balance Sheet

A stable balance sheet with a balanced asset structure indicates financial resilience, providing a foundation for potential recovery and growth.

Strategic Partnerships

Partnerships with other firms in construction and real estate sectors can drive revenue growth and improve competitive positioning over the long term.

Revenue Streams

Diverse revenue streams from construction and property development provide stability and potential for consistent income, supporting long-term business sustainability.

Negative Factors

Profitability Challenges

Persistent profitability challenges and negative margins indicate operational inefficiencies, which could hinder long-term financial health and growth prospects.

Negative Cash Flow

Negative cash flows limit the company's ability to invest in growth opportunities and manage financial obligations, posing a risk to long-term viability.

Rising Debt Levels

Increased leverage can strain financial flexibility and elevate risk, potentially impacting the company's ability to navigate economic downturns.

Hanison Construction Holdings Business Overview & Revenue Model

Company Description

Hanison Construction Holdings (0896) is a prominent construction and property development company based in Hong Kong. The company operates primarily in the construction sector, offering a wide range of services including civil engineering, building construction, and project management. Hanison focuses on both public and private sector projects, with core offerings that encompass residential, commercial, and infrastructure development. The company is committed to delivering high-quality construction solutions while adhering to sustainable practices and innovation in building technology.

How the Company Makes Money

Hanison Construction Holdings generates revenue primarily through its construction contracts and property development projects. The company secures contracts from both government and private clients, which provide a steady stream of income as projects progress. Key revenue streams include civil engineering works, building construction, and project management fees. Additionally, Hanison derives income from the sale and leasing of developed properties, contributing to its overall financial performance. Strategic partnerships with other firms in the construction and real estate sectors enhance its market reach and operational capabilities, further bolstering its revenue generation efforts.

Hanison Construction Holdings Financial Statement Overview

Summary

Hanison Construction Holdings is facing profitability and cash flow challenges, with negative margins and cash flows. While revenue has grown slightly, the company struggles with operational efficiency and leverage. The balance sheet remains 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	1.77B	1.99B	1.61B	1.23B	1.44B	1.45B
Gross Profit	117.29M	124.47M	119.86M	114.83M	139.32M	137.24M
EBITDA	-306.62M	-227.05M	-119.68M	31.69M	220.94M	342.85M
Net Income	-376.80M	-295.30M	-216.01M	-38.43M	154.34M	274.99M
Balance Sheet
Total Assets	5.65B	5.97B	6.23B	6.16B	6.72B	8.13B
Cash, Cash Equivalents and Short-Term Investments	327.81M	478.01M	441.75M	399.89M	602.87M	706.83M
Total Debt	1.89B	1.94B	1.89B	1.53B	1.80B	3.19B
Total Liabilities	2.45B	2.50B	2.46B	2.09B	2.50B	3.99B
Stockholders Equity	3.19B	3.46B	3.77B	4.07B	4.22B	4.14B
Cash Flow
Free Cash Flow	-180.34M	-361.36M	-215.90M	-171.54M	-179.80M	-851.71M
Operating Cash Flow	-179.45M	-357.91M	-202.28M	-142.63M	-178.52M	-844.41M
Investing Cash Flow	195.72M	344.21M	-18.75M	300.23M	1.21B	764.88M
Financing Cash Flow	-45.45M	50.00M	265.56M	-367.45M	-1.13B	539.78M

Hanison Construction Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 Neutral. The current price of 0.26 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.26, and above the 200-day MA of 0.26, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 29.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0896.

Hanison Construction Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1582	65 Neutral	HK$180.00M	4.27	6.32%	9.17%	27.42%	-32.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$182.00M	7.48	6.66%	15.38%	13.59%	-12.52%
2863	54 Neutral	HK$246.72M	-57.94	-1.47%	8.11%	0.94%	82.30%
0896	46 Neutral	HK$279.00M	-0.74	-11.13%	―	-8.54%	-25.17%
1707	41 Neutral	HK$57.12M	-3.70	-9.58%	―	3.97%	14.02%
1559	39 Underperform	HK$149.53M	-1.84	-46.27%	―	-63.83%	36.12%

Hanison Construction Holdings Corporate Events

Hanison Construction Reports Revenue Decline and Net Loss for Interim 2025

Hanison Construction Holdings Limited reported a significant decline in its financial performance for the six months ending September 30, 2025, with a 21.7% decrease in revenue to HK$770.8 million and a net loss of HK$274.6 million. The decline was attributed to losses from the disposal of a hotel and revaluation losses on properties, exacerbated by high interest rates affecting the property market. The company decided not to declare an interim dividend for this period, reflecting the challenging market conditions.

The most recent analyst rating on (HK:0896) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hanison Construction Holdings stock, see the HK:0896 Stock Forecast page.

Hanison Construction Issues Profit Warning Amid Property Market Downturn

Hanison Construction Holdings Limited has issued a profit warning, expecting a net loss between HK$270.0 million and HK$280.0 million for the six months ending September 30, 2025, compared to a HK$193.1 million loss in the same period in 2024. The increased loss is attributed to a significant loss on the disposal of The Connaught hotel and a net revaluation loss on properties, compounded by high interest expenses due to a downturn in the property market. Stakeholders are advised to exercise caution when dealing with the company’s shares.

The most recent analyst rating on (HK:0896) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hanison Construction Holdings stock, see the HK:0896 Stock Forecast page.

Hanison Construction Holdings to Announce Interim Results and Consider Dividend

Hanison Construction Holdings Limited has announced that its Board of Directors will meet on November 11, 2025, to approve the interim results for the six months ending September 30, 2025, and to consider a dividend payment. This meeting is significant as it will provide insights into the company’s financial health and potential returns to shareholders, impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:0896) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hanison Construction Holdings stock, see the HK:0896 Stock Forecast page.

Hanison Construction Announces Strategic Property Disposal

Hanison Construction Holdings Limited has announced the disposal of its entire share capital in the Target Company, which holds a property operated as a hotel known as ‘The Connaught’ located at No. 138 Connaught Road West, Hong Kong. The sale, valued at HK$410 million, is part of a strategic review aimed at maximizing shareholder returns by unlocking the property’s value in the current market environment. The transaction is expected to result in a loss of approximately HK$177 million for the Group, and its completion is contingent upon fulfilling certain conditions precedent.

The most recent analyst rating on (HK:0896) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Hanison Construction Holdings stock, see the HK:0896 Stock Forecast page.