Hanison Construction Holdings (0896) AI Stock Analysis

• Market Cap: HK$257.54M
• Dividend Yield: N/A
• Average Volume (3M): 198.20K
• 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: 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$0.23 ▼(-10.38% 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 the company has maintained a balanced mix of assets and financing, which supports resilience through cyclical construction demand. This durability in capital structure preserves borrowing capacity and limits forced asset sales during downturns, aiding medium-term operational stability.

Modest revenue growth

Reported modest revenue growth shows the business can sustain top-line expansion even amid sector headwinds. Persistent revenue gains, though small, support operating scale and backlog conversion potential, enabling longer-term recovery in margins if cost structure and project execution improve.

Positive free cash flow coverage

A slightly positive free cash flow to net income ratio suggests the company can generate some cash despite accounting losses. This structural ability to convert operations into cash provides a buffer for working capital and capex needs, reducing near-term refinancing pressure compared with purely cash-burning peers.

Negative Factors

Negative profitability margins

Declining gross margin and negative EBIT and net margins reflect structural issues in project economics or pricing power. Persistent negative margins erode equity and constrain reinvestment, making profitable growth difficult without sustained cost reductions, improved bidding or higher-margin contract mix.

Negative operating cash flow

Negative operating cash flow indicates the core business is not generating sufficient cash to fund operations, increasing reliance on external financing. Over months this pressures liquidity, limits strategic flexibility, and heightens refinancing or covenant risks, particularly in construction where working capital swings are common.

Negative ROE & rising leverage

A rising debt-to-equity ratio combined with negative ROE signals the company is using more leverage while failing to generate shareholder returns. This structural imbalance magnifies downside in downturns, elevates interest and refinancing burdens, and limits capacity to invest in higher-return projects.

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

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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: Positive
• Last Price: 0.26
• 50DMA: Positive
• 100DMA: Negative
• 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 0.26 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.23, and above the 200-day MA of 0.25, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 61.27 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 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
1582	65 Neutral	HK$175.00M	2.21	6.22%	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	6.62%	15.38%	13.59%	-12.52%
2863	50 Neutral	HK$279.25M	-14.68	-6.83%	8.33%	0.94%	82.30%
1707	47 Neutral	HK$85.68M	-5.35	-9.80%	―	3.97%	14.02%
0896	46 Neutral	HK$257.54M	-0.25	-11.32%	―	-8.54%	-25.17%
1559	44 Neutral	HK$168.22M	-4.56	-81.85%	―	-63.83%	36.12%