Kwong Luen Engineering Holdings Limited (1413) AI Stock Analysis

• Market Cap: HK$84.00M
• Dividend Yield: N/A
• Average Volume (3M): 9.82M
• Price to Earnings (P/E): 21.7
• Beta (1Y): -0.06
• Revenue Growth: -34.49%
• EPS Growth: -496.53%
• Country: HK
• Employees: 173
• Sector: Industrials
• Sector Strength: 80
• Industry: Engineering & Construction
• EPS (TTM): -0.06
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 14,108,500
• 30 Day Avg. Volume: 9,822,166
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score of 45 reflects significant financial challenges, particularly in revenue and profitability, as well as poor valuation metrics. Technical analysis shows mixed signals, with short-term stability but long-term weakness. The lack of earnings call and corporate events data further limits positive outlook.

Kwong Luen Engineering Holdings Limited Business Overview & Revenue Model

Company Description

Kwong Luen Engineering Holdings Limited (1413) is a Hong Kong-based investment holding company primarily engaged in the provision of engineering services. The company operates in various sectors, including the construction and maintenance of electrical and mechanical systems, as well as offering project management solutions. Its core products and services encompass installation, repair, and maintenance of air-conditioning systems, electrical systems, and other mechanical works, catering to both public and private sector clients.

How the Company Makes Money

Kwong Luen Engineering Holdings Limited generates revenue primarily through its engineering services, which include installation and maintenance contracts for electrical and mechanical systems. The company earns money by bidding on and securing contracts from various clients, including government agencies and private sector businesses. Key revenue streams include long-term maintenance agreements, one-off project contracts, and consultancy services related to engineering projects. Additionally, strategic partnerships with suppliers and subcontractors can enhance its service offerings and competitive pricing, contributing to its overall earnings. Seasonal fluctuations in construction activity and infrastructure investment levels also play a significant role in the company's revenue performance.

Kwong Luen Engineering Holdings Limited Financial Statement Overview

Summary

Kwong Luen Engineering Holdings Limited demonstrates strong revenue growth and improved profitability metrics, indicating a positive operational trajectory. The balance sheet is solid with low leverage, providing stability. However, the cash flow situation is concerning with negative free cash flow, which may pose liquidity challenges if not addressed.

Income Statement

Kwong Luen Engineering Holdings Limited shows a strong recovery in revenue with a growth rate of 82.7% from 2023 to 2024. The gross profit margin has improved significantly to 5.3% in 2024 from 3.5% in 2023, indicating better cost management. EBIT and EBITDA margins have also improved to 3.4% and 5.7%, respectively. Net profit margin increased to 2.8% in 2024, reflecting improved profitability. However, these metrics are still moderate compared to industry standards, suggesting room for further improvement in profitability.

Balance Sheet

The balance sheet shows a stable equity ratio of approximately 70%, indicating a strong capital structure with moderate leverage. The debt-to-equity ratio remains low at 0.12, suggesting conservative financial leverage, which is positive for financial stability. However, the return on equity (ROE) at 6.5% indicates moderate efficiency in generating returns on shareholders' investments.

Cash Flow

The company experienced a negative free cash flow of -37.95 million in 2024, which is a concern. Operating cash flow to net income ratio is negative, indicating that earnings are not being effectively converted into cash. This could impact liquidity if the trend continues. However, financing activities have been positive, suggesting some reliance on external funding.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	651.76M	404.95M	618.19M	338.32M	548.84M	481.71M
Gross Profit	31.43M	-59.95M	34.76M	11.91M	46.17M	60.82M
EBITDA	20.77M	-72.67M	36.90M	13.93M	50.80M	51.31M
Net Income	2.79M	-81.52M	17.26M	1.00M	23.52M	31.13M
Balance Sheet
Total Assets	396.08M	298.61M	381.17M	292.71M	310.07M	282.67M
Cash, Cash Equivalents and Short-Term Investments	18.36M	33.92M	25.15M	25.36M	42.65M	107.65M
Total Debt	16.29M	5.58M	31.07M	3.13M	23.72M	18.37M
Total Liabilities	98.82M	66.76M	114.79M	43.59M	61.95M	58.07M
Stockholders Equity	297.25M	221.87M	266.38M	249.12M	248.12M	224.60M
Cash Flow
Free Cash Flow	-53.82M	-18.28M	-37.95M	-1.75M	-68.92M	-34.31M
Operating Cash Flow	-53.82M	-11.48M	-29.47M	10.00M	-27.67M	-20.32M
Investing Cash Flow	10.09M	8.24M	2.67M	-6.69M	-41.26M	-13.96M
Financing Cash Flow	34.58M	12.01M	26.59M	-20.59M	3.92M	126.88M

Kwong Luen Engineering Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Positive
• 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:1413, the sentiment is Negative. The current price of 0.07 is below the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.07, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1413.

Kwong Luen Engineering Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1690	58 Neutral	HK$91.38M	45.00	1.37%	15.87%	28.46%	-71.43%
Sector *	58 Neutral	HK$14.10B	4.53	-3.70%	5.60%	2.27%	-65.55%
3878	55 Neutral	HK$78.17M	16.14	1.80%	―	-37.55%	-41.28%
6080	51 Neutral	HK$95.24M	21.70	3.32%	―	20.26%	17.50%
1751	48 Neutral	HK$97.98M	200.00	-53.25%	―	-45.46%	-329.88%
1413	45 Neutral	HK$84.00M	21.67	-33.39%	―	-34.49%	-496.53%

Kwong Luen Engineering Holdings Limited Corporate Events

FEG Holdings Announces Changes in Nomination Committee Leadership

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, has announced changes in the composition of its Nomination Committee. Mr. Tang Man Joe has been appointed as the new chairman, while Mr. Yang Zhenwei has been re-designated as a member, effective from April 25, 2025. This change aims to bring a new leadership dynamic to the committee, potentially impacting the company’s governance and strategic direction.

FEG Holdings Announces Board Composition and Roles

FEG Holdings Corporation Limited has announced the composition of its board of directors, detailing the roles and functions of each member. The board includes both executive and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the decision-making framework and oversight within the organization.

FEG Holdings Announces Executive Director Resignation

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, announced the resignation of Ms. Huang Jiayi from her position as an executive director, effective April 11, 2025. Ms. Huang is leaving to focus on other business engagements and personal commitments. The company expressed gratitude for her contributions and confirmed there are no disagreements or issues related to her departure that need to be communicated to the Stock Exchange or shareholders.

FEG Holdings Announces Board Composition and Committee Roles

FEG Holdings Corporation Limited, incorporated in the Cayman Islands, has announced the composition of its Board of Directors and the roles within its committees. The Board consists of both executive and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement provides clarity on the governance structure and could influence stakeholders’ perception of the company’s management and oversight capabilities.

FEG Holdings Halts Cryptocurrency Mining Plans Amid Regulatory Challenges

FEG Holdings Corporation Limited has announced the cessation of its planned cryptocurrency mining business activities due to recent regulatory developments and challenges in the sector. The decision to halt these activities, which had not yet commenced, allows the company to reallocate resources towards more stable and profitable business opportunities, ensuring the continued operation of its construction services in Hong Kong.