Kaisa Capital Investment Holdings Limited (0936) AI Stock Analysis

• Market Cap: HK$540.60M
• Dividend Yield: N/A
• Average Volume (3M): 3.79M
• Price to Earnings (P/E): 23.1
• Beta (1Y): 2.62
• Revenue Growth: 3.51%
• EPS Growth: -2136.54%
• Country: HK
• Employees: 109
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): <0.01
• Shares Outstanding: 1,060,000,000
• 10 Day Avg. Volume: 9,354,100
• 30 Day Avg. Volume: 3,786,033
• PEG Ratio: -0.18
• Price to Book (P/B): 5.57
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 3.18
• 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: HK$0.50
• Price Target Upside: 4.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: HK$0.50 ▲(4.17% Upside)

The overall stock score of 51 reflects significant financial challenges, with high leverage and liquidity risks being major concerns. Despite these issues, the stock shows positive technical momentum, which partially offsets the negative financial outlook. The valuation remains unattractive due to negative earnings and lack of dividends.

Kaisa Capital Investment Holdings Limited Business Overview & Revenue Model

Company Description

Kaisa Capital Investment Holdings Limited, an investment holding company, trades in construction machinery and spare parts in Singapore, Vietnam, and the People's Republic of China. It also leases and sells construction machinery and spare parts, including tower cranes, construction site lifts, new environmental machinery, etc.; and provides ancillary engineering consultancy, and repair and maintenance services for construction machinery. In addition, the company undertakes construction projects, such as foundation piling, earthworks, superstructure, renovation, and improvement works. Further, it is involved in the property investment and development business. The company was formerly known as Eagle Legend Asia Limited and changed its name to Kaisa Capital Investment Holdings Limited in July 2021. Kaisa Capital Investment Holdings Limited was founded in 1975 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Kaisa Capital generates revenue through multiple streams, primarily from property sales and leasing activities in the real estate sector. The company develops residential and commercial properties, which are sold or leased to generate income. Additionally, Kaisa Capital engages in financial investments, including equity and debt instruments, which contribute to its earnings through capital appreciation and interest income. Partnerships with various real estate developers, financial institutions, and investment funds also play a crucial role in expanding its investment opportunities and enhancing revenue generation. The company may also earn management fees from its asset management services, further diversifying its income sources.

Kaisa Capital Investment Holdings Limited Financial Statement Overview

Summary

Kaisa Capital Investment Holdings Limited faces significant financial challenges, with declining revenues and profitability impacting its income statement. The balance sheet highlights high leverage and diminishing equity, raising concerns about financial health. Cash flow issues persist, with recent periods showing zero operating cash flows, underscoring liquidity risks. Addressing these challenges is vital for future stability and growth.

Income Statement

The company has experienced fluctuating revenues over the years, with a recent decline from 2023 to 2024. Gross profit margins have been relatively stable, averaging around 60%, but net profit margins have been negative in the latest period, indicating challenges in controlling costs or generating sufficient revenue. The EBIT margin improved significantly in 2024, suggesting better operational efficiency despite the net loss. However, the EBITDA margin has declined, signaling potential issues in core earnings quality.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage and potential financial risk. Stockholders' equity has decreased substantially, reflecting financial stress. The equity ratio is low, suggesting reliance on debt for financing. Return on equity has turned negative due to recent losses, highlighting profitability challenges. The company's asset base has shrunk, further signaling financial difficulties.

Cash Flow

The cash flow statement shows a worrying trend with operating cash flow dropping to zero in the latest period, indicating potential liquidity issues. Free cash flow has also been inconsistent and negative in the past, reflecting challenges in generating cash from operations. The absence of capital expenditures in the latest year suggests potential underinvestment. Overall, cash flow management requires improvement to ensure financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	231.66M	225.11M	237.70M	200.17M	214.74M	143.06M
Gross Profit	94.77M	135.31M	79.14M	126.13M	134.41M	66.87M
EBITDA	55.89M	48.95M	78.70M	82.26M	82.35M	9.01M
Net Income	-112.30M	-112.52M	5.38M	5.18M	4.48M	-63.63M
Balance Sheet
Total Assets	489.31M	474.74M	588.44M	559.55M	550.02M	485.65M
Cash, Cash Equivalents and Short-Term Investments	3.25M	14.37M	24.23M	46.04M	31.02M	29.95M
Total Debt	196.56M	211.19M	216.24M	214.01M	264.29M	231.38M
Total Liabilities	452.86M	446.95M	445.27M	422.45M	417.78M	358.38M
Stockholders Equity	36.45M	27.79M	143.17M	137.10M	132.24M	126.81M
Cash Flow
Free Cash Flow	42.06M	48.72M	46.61M	103.54M	-35.85M	-98.21M
Operating Cash Flow	95.28M	83.21M	70.47M	135.18M	52.89M	-68.61M
Investing Cash Flow	-32.64M	-14.20M	-10.70M	-30.62M	-82.35M	115.80M
Financing Cash Flow	-77.13M	-78.38M	-73.42M	-92.68M	20.50M	-128.97M

Kaisa Capital Investment Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0936, the sentiment is Positive. The current price of 0.48 is above the 20-day moving average (MA) of 0.38, above the 50-day MA of 0.22, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 11.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0936.

Kaisa Capital Investment Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1581	72 Outperform	HK$72.62M	2.13	11.73%	―	25.43%	53.36%
1496	68 Neutral	HK$147.74M	12.13	5.19%	5.03%	-7.95%	17.50%
0936	51 Neutral	HK$540.60M	23.08	6.55%	―	3.51%	-2136.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Kaisa Capital Investment Holdings Limited Corporate Events

Kaisa Capital Investment Holdings Announces 2025 Annual General Meeting

Kaisa Capital Investment Holdings Limited has announced its upcoming annual general meeting scheduled for May 28, 2025, in Hong Kong. Key agenda items include the review of the company’s financial statements, re-election of directors, and authorization of directors’ remuneration. Additionally, the meeting will address the re-appointment of Baker Tilly Hong Kong Limited as the auditor and the authorization for directors to issue additional shares, subject to certain conditions. This announcement indicates the company’s ongoing efforts to maintain transparency and governance, potentially impacting its market positioning and stakeholder confidence.

Kaisa Capital Reports 2024 Financial Results with Significant Losses

Kaisa Capital Investment Holdings Limited announced its audited consolidated results for the year ended December 31, 2024. The company reported a revenue of HK$225,114,000 from continuing operations, with a gross profit of HK$135,310,000. Despite a profit from continuing operations, the company faced a significant loss from discontinued operations, resulting in an overall loss for the year of HK$112,516,000. The total comprehensive loss attributable to owners was HK$115,376,000, highlighting challenges in foreign operations and financial performance.

Kaisa Capital Issues Profit Warning Amid Expected Losses

Kaisa Capital Investment Holdings Limited has issued a profit warning, indicating an expected net loss between HK$108 million and HK$118 million for the year ended December 31, 2024, primarily due to an impairment of property under development amounting to approximately HK$115 million. This marks a significant downturn from the previous year’s net profit of approximately HK$5 million, highlighting potential challenges in the company’s operations and signaling caution for shareholders and investors.

Kaisa Capital Announces Board Meeting to Approve Annual Results

Kaisa Capital Investment Holdings Limited has announced a board meeting scheduled for March 25, 2025, to discuss and approve the annual results for the year ending December 31, 2024. The meeting will also consider the recommendation for a final dividend payment, which could impact the company’s financial strategy and shareholder returns.