Hanison Construction Holdings (0896) AI Stock Analysis

• Market Cap: HK$237.15M
• Dividend Yield: N/A
• Average Volume (3M): 198.20K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• 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: 222,694
• 30 Day Avg. Volume: 198,198
• 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$0.22 ▼(-16.54% Downside)
• Action: Reiterated Date: 12/05/25
• Date: Action: Reiterated 12/05/25

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 Equity Ratio

A stable equity ratio indicates a balanced asset structure that cushions the firm against short-term shocks. Over a 2–6 month horizon this supports access to financing, preserves creditor confidence, and reduces the chance of forced deleveraging while operational fixes are implemented.

Free Cash Flow Coverage

A slightly positive free cash flow to net income ratio shows the company still converts some accounting losses into actual cash. This durable cash-generation capability can fund essential operations or small investments and reduces immediate liquidity pressure while turnaround actions take effect.

Modest Revenue Growth

Positive revenue growth, even modest, signals ongoing demand for the company's services. Over the medium term this provides a foundation to regain margins if costs are controlled, supports utilization of existing capacity, and makes operational improvements more effective and sustainable.

Negative Factors

Negative Cash Flows

Persistent negative operating and free cash flows weaken liquidity and force reliance on external financing or asset disposals. This reduces flexibility to invest in projects or absorb setbacks, increases refinancing risk, and can constrain operational recovery over the coming months.

Weak Profitability

Negative margins reflect structural operational inefficiencies or unfavorable project economics. Continued losses erode retained earnings and limit reinvestment capacity, making it harder to fund improvements and restore competitiveness without material cost or revenue changes.

Negative ROE and Rising Leverage

A negative ROE coupled with rising debt increases financial strain and reduces shareholder value creation. Higher leverage magnifies earnings volatility and interest burden, limiting ability to bid for projects or pursue growth initiatives without improving margins or securing cheaper financing.

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	Mar 2024	Mar 2023	Mar 2023	Mar 2022	Mar 2021
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: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 0.26 is above the 20-day moving average (MA) of 0.22, above the 50-day MA of 0.23, and above the 200-day MA of 0.25, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.79 is Neutral, neither overbought nor oversold. The STOCH value of 37.88 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	65 Neutral	HK$190.00M	2.21	6.32%	9.71%	27.42%	-32.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$244.00M	6.75	6.66%	15.38%	13.59%	-12.52%
2863	50 Neutral	HK$262.01M	-14.68	-1.47%	8.33%	0.94%	82.30%
1707	47 Neutral	HK$90.72M	-5.35	-9.58%	―	3.97%	14.02%
0896	46 Neutral	HK$237.15M	-0.25	-11.13%	―	-8.54%	-25.17%
1559	44 Neutral	HK$235.51M	-4.56	-46.27%	―	-63.83%	36.12%