Hanison Construction Holdings (0896) AI Stock Analysis

• Market Cap: HK$289.73M
• Dividend Yield: 24%
• Average Volume (3M): 169.66K
• 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: 84
• Industry: Engineering & Construction
• EPS (TTM): -0.10
• Shares Outstanding: 1,073,074,700
• 10 Day Avg. Volume: 65,755
• 30 Day Avg. Volume: 169,661
• 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

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(92.31% Upside)

The overall stock score of 51 reflects significant financial challenges, particularly in profitability and cash flow, which are major concerns. Technical analysis provides a slightly positive outlook with neutral indicators, but valuation remains unattractive due to negative earnings and no dividend yield.

Hanison Construction Holdings Business Overview & Revenue Model

Company Description

Hanison Construction Holdings (0896) is a diversified construction and property development company based in Hong Kong. The company operates primarily in the construction sector, engaging in civil engineering, building construction, and project management services. Additionally, Hanison is involved in property development, offering residential, commercial, and industrial properties. With a commitment to quality and sustainability, Hanison Construction Holdings aims to deliver innovative solutions across various construction and development projects.

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 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	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: Positive
• 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, above the 50-day MA of 0.25, and below the 200-day MA of 0.29, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 54.95 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
1582	72 Outperform	HK$215.00M	4.00	8.43%	7.86%	11.39%	-25.31%
1447	72 Outperform	HK$228.00M	8.21	7.49%	12.28%	19.67%	9.64%
Sector *	58 Neutral	HK$13.23B	4.28	-2.97%	5.82%	2.91%	-48.85%
2863	57 Neutral	HK$243.38M	―	-1.47%	8.22%	0.94%	82.30%
0896	51 Neutral	HK$289.73M	―	-8.17%	24.00%	23.10%	-37.74%
1707	51 Neutral	HK$166.32M	―	-9.34%	―	-40.18%	3.09%
1559	46 Neutral	HK$214.95M	―	-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.