Hanison Construction Holdings (0896) AI Stock Analysis

• Market Cap: HK$295.10M
• Dividend Yield: 24%
• Average Volume (3M): 270.11K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: 46.07%
• EPS Growth: -338.97%
• Country: HK
• Employees: 548
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): -0.10
• Shares Outstanding: 1,073,074,700
• 10 Day Avg. Volume: 390,389
• 30 Day Avg. Volume: 270,106
• PEG Ratio: 0.02
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.81
• 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: 43 Neutral
• Price Target: ―

Hanison Construction Holdings shows strong revenue growth but struggles with profitability and cash flow, reflected in its low financial performance score. Technical analysis indicates bearish trends with oversold indicators. The valuation is concerning due to a negative P/E ratio and unsustainable dividend yield. Overall, the stock is rated low due to these financial and technical challenges.

Hanison Construction Holdings Business Overview & Revenue Model

Company Description

Hanison Construction Holdings Limited (0896) is a diversified company based in Hong Kong, operating primarily in the construction and property development sectors. The company engages in a wide range of activities, including building construction, interior and exterior fitting-out works, property development, property investment, and the provision of construction-related services. Hanison Construction Holdings is recognized for its comprehensive approach to construction and property management, delivering quality projects across various sectors.

How the Company Makes Money

Hanison Construction Holdings makes money through multiple revenue streams primarily centered around its core activities in construction and property development. The construction division generates revenue by undertaking contracts for building, civil engineering, and fitting-out works for both public and private sector clients. This includes new building construction, renovation, and maintenance services. In the property development sector, the company earns revenue from the sale of residential and commercial properties that it develops. Additionally, Hanison benefits from rental income derived from its property investment portfolio, which includes commercial and industrial properties. Partnerships and joint ventures in property development and investment also contribute to its earnings, as they allow the company to leverage shared resources and expertise.

Hanison Construction Holdings Financial Statement Overview

Summary

Hanison Construction Holdings shows strong revenue growth, but faces challenges with profitability and cash flow. The balance sheet is solid with a strong equity position, yet negative return on equity and cash flow issues present risks.

Income Statement

Hanison Construction Holdings has been experiencing a decline in profitability as evidenced by negative EBIT and EBITDA margins in the latest fiscal year. The company also showed a significant net loss. However, there was a substantial revenue growth rate of 30.79% from the previous year, indicating strong top-line expansion.

Balance Sheet

The company's balance sheet reflects a relatively moderate debt-to-equity ratio of 0.50, suggesting a balanced approach to using debt. However, the return on equity is negative due to significant net losses. The equity ratio of 60.48% indicates a strong equity base compared to the total assets, which is a positive sign of financial stability.

Cash Flow

Operating cash flow remains negative, impacting the free cash flow, which also shows a decline. The free cash flow to net income ratio is unfavorable, reflecting challenges in converting earnings into cash flow. The growth rate of free cash flow is negative, raising concerns about liquidity management.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	1.61B	1.23B	1.44B	1.45B	958.25M
Gross Profit	119.86M	114.83M	139.32M	137.24M	162.04M
EBITDA	-119.68M	104.25M	229.03M	371.59M	171.05M
Net Income	-216.01M	-38.43M	154.34M	274.99M	221.38M
Balance Sheet
Total Assets	6.23B	6.16B	6.72B	8.13B	6.52B
Cash, Cash Equivalents and Short-Term Investments	441.75M	399.89M	602.87M	706.83M	246.46M
Total Debt	1.89B	1.53B	1.80B	3.19B	1.68B
Total Liabilities	2.46B	2.09B	2.50B	3.99B	2.60B
Stockholders Equity	3.77B	4.07B	4.22B	4.14B	3.92B
Cash Flow
Free Cash Flow	-215.90M	-171.54M	-179.80M	-851.71M	-328.78M
Operating Cash Flow	-202.28M	-142.63M	-178.52M	-844.41M	-313.34M
Investing Cash Flow	-18.75M	300.23M	1.21B	764.88M	-1.54B
Financing Cash Flow	265.56M	-367.45M	-1.13B	539.78M	1.23B

Hanison Construction Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0896, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.25, above the 50-day MA of 0.25, and below the 200-day MA of 0.31, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.50 is Neutral, neither overbought nor oversold. The STOCH value of 85.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0896.

Hanison Construction Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0113	76 Outperform	HK$2.66B	13.69	5.58%	2.90%	-19.93%	-43.35%
0083	69 Neutral	$79.42B	20.89	2.17%	1.73%	-30.38%	-43.73%
0041	63 Neutral	HK$11.02B	―	-3.12%	6.78%	2.20%	-327.14%
0683	62 Neutral	HK$29.61B	36.64	0.76%	9.31%	50.11%	-75.09%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%
0017	50 Neutral	$14.09B	―	-10.34%	8.93%	-56.64%	-3398.20%
0896	43 Neutral	HK$295.10M	―	-8.17%	24.00%	46.07%	-338.97%