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Kwong Luen Engineering Holdings Limited (HK:1413)
:1413
Hong Kong Market
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Kwong Luen Engineering Holdings Limited (1413) AI Stock Analysis

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HK:1413

Kwong Luen Engineering Holdings Limited

(1413)

Rating:50Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The overall stock score is primarily impacted by the company's financial challenges, including declining revenues and profitability, and negative cash flows. While technical analysis shows short-term positive momentum, the overbought RSI suggests caution. Poor valuation metrics further weigh down the score.
Positive Factors
Low Leverage
Low leverage provides financial flexibility and reduces risk, allowing the company to better withstand economic downturns and invest in growth opportunities.
Stable Capital Structure
A stable capital structure indicates resilience and the ability to maintain operations without significant financial restructuring, supporting long-term sustainability.
Positive Free Cash Flow to Net Income Ratio
Efficient cash conversion supports liquidity and operational flexibility, enabling the company to fund projects and manage obligations effectively.
Negative Factors
Declining Revenues
Significant revenue decline indicates potential loss of market share or demand, challenging the company's ability to sustain growth and profitability.
Negative Profit Margins
Negative profit margins reflect operational inefficiencies and cost management issues, which can undermine long-term financial health and investor confidence.
Negative Cash Flows
Negative cash flows strain liquidity and limit the company's ability to invest in growth, pay down debt, or return capital to shareholders, impacting long-term viability.

Kwong Luen Engineering Holdings Limited (1413) vs. iShares MSCI Hong Kong ETF (EWH)

Kwong Luen Engineering Holdings Limited Business Overview & Revenue Model

Company DescriptionKwong Luen Engineering Holdings Limited, an investment holding company, operates as a foundation works contractor in Hong Kong. The company primarily undertakes excavation and lateral support, pile cap construction, underground drainage, and site formation works. The company was founded in 1995 and is headquartered in Tsuen Wan, Hong Kong.
How the Company Makes MoneyKwong 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 faces significant financial challenges, particularly in revenue generation and profitability. The income statement shows declining revenues and negative profit margins, while the balance sheet is stable with low leverage. Cash flow issues persist, with negative operating and free cash flows.
Income Statement
30
Negative
The income statement reveals a concerning trend with declining revenues and profitability. The company experienced a significant revenue drop of 37.87% in the latest year, and both gross and net profit margins turned negative, indicating operational challenges. Historical data shows fluctuating revenue growth and shrinking margins, suggesting instability in financial performance.
Balance Sheet
60
Neutral
The balance sheet shows a relatively low debt-to-equity ratio of 0.025, indicating conservative leverage. However, the return on equity has decreased over the years, reflecting reduced profitability. The equity ratio remains stable, suggesting a solid capital structure despite declining returns.
Cash Flow
40
Negative
Cash flow analysis highlights 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. Despite this, the free cash flow to net income ratio is positive, suggesting some efficiency in converting earnings to cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue651.76M404.95M618.19M338.32M548.84M481.71M
Gross Profit31.43M-59.95M34.76M11.91M46.17M60.82M
EBITDA20.77M-72.67M36.90M13.93M50.80M51.31M
Net Income2.79M-81.52M17.26M1.00M23.52M31.13M
Balance Sheet
Total Assets396.08M298.61M381.17M292.71M310.07M282.67M
Cash, Cash Equivalents and Short-Term Investments18.36M33.92M25.15M25.36M42.65M107.65M
Total Debt16.29M5.58M31.07M3.13M23.72M18.37M
Total Liabilities98.82M66.76M114.79M43.59M61.95M58.07M
Stockholders Equity297.25M221.87M266.38M249.12M248.12M224.60M
Cash Flow
Free Cash Flow-53.82M-18.28M-37.95M-1.75M-68.92M-34.31M
Operating Cash Flow-53.82M-11.48M-29.47M10.00M-27.67M-20.32M
Investing Cash Flow10.09M8.24M2.67M-6.69M-41.26M-13.96M
Financing Cash Flow34.58M12.01M26.59M-20.59M3.92M126.88M

Kwong Luen Engineering Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.09
Price Trends
50DMA
0.07
Positive
100DMA
0.07
Positive
200DMA
0.09
Positive
Market Momentum
MACD
<0.01
Negative
RSI
65.51
Neutral
STOCH
52.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1413, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 65.51 is Neutral, neither overbought nor oversold. The STOCH value of 52.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1413.

Kwong Luen Engineering Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
$10.84B15.287.40%1.99%2.87%-14.59%
58
Neutral
HK$94.28M90.000.82%15.38%57.78%-78.95%
56
Neutral
HK$82.97M17.131.80%-37.55%-41.28%
50
Neutral
HK$112.80M21.67-33.39%-34.49%-496.53%
49
Neutral
HK$133.53M30.433.32%20.26%17.50%
48
Neutral
HK$97.98M200.00-53.25%-45.46%-329.88%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1413
Kwong Luen Engineering Holdings Limited
0.09
-0.05
-35.71%
HK:1751
Kingland Group Holdings Limited
0.40
-0.08
-16.67%
HK:3878
Vicon Holdings Limited
0.17
-0.06
-26.09%
HK:6080
Wing Chi Holdings Limited
0.15
0.10
200.00%
HK:1690
Lap Kei Engineering (Holdings) Limited
0.06
0.00
0.00%

Kwong Luen Engineering Holdings Limited Corporate Events

FEG Holdings Announces Cryptocurrency Investment Strategy
Sep 7, 2025

FEG Holdings Corporation Limited has announced a strategic investment framework to allocate up to HKD4.5 million towards cryptocurrency investments through its subsidiary, TGG Digital Limited. The investment aims to diversify the company’s portfolio by employing delta-neutral quantitative strategies to ensure capital preservation and steady, risk-adjusted returns. The investment is divided into active strategy capital and a risk reserve to manage potential drawdowns. The company has implemented a three-tier risk management framework to mitigate operational and financial risks, including systematic circuit breakers, real-time on-chain audits, and a dedicated risk reserve.

Kwong Luen Engineering Announces Share Placement to Raise HK$12.1 Million
Aug 27, 2025

Kwong Luen Engineering Holdings Limited has announced a placement of up to 200,000,000 new shares under a general mandate, with Cheong Lee Securities Limited acting as the placing agent. The shares are priced at HK$0.063 each, representing a discount to recent trading prices. The placement aims to raise approximately HK$12.1 million, which will be used for the company’s general working capital. This move could potentially enhance the company’s liquidity and financial flexibility, impacting its operational capabilities and market positioning.

FEG Holdings Announces 2025 Annual General Meeting Agenda
Aug 27, 2025

FEG Holdings Corporation Limited has announced its upcoming annual general meeting scheduled for September 18, 2025, in Hong Kong. The meeting will address several key agenda items, including the approval of audited financial statements, re-election of directors, and re-appointment of the company’s auditor. Additionally, a resolution will be considered to grant directors a mandate to issue additional shares, which could potentially impact the company’s capital structure and shareholder value.

FEG Holdings Announces Board and Committee Changes
Aug 20, 2025

FEG Holdings Corporation Limited, a company listed on the Hong Kong Stock Exchange, has announced changes in its board of directors and committee compositions effective from August 20, 2025. Ms. Lai and Mr. Wong have resigned from their positions as independent non-executive directors to focus on other business engagements and personal commitments. They have been replaced by Mr. Chan and Mr. Sin, who bring extensive experience in financial auditing, accounting, and management. These changes are expected to bring fresh perspectives and expertise to the company’s governance and strategic direction.

FEG Holdings Announces Board Composition and Committee Roles
Aug 20, 2025

FEG Holdings Corporation Limited, incorporated in the Cayman Islands, has announced the composition of its board of directors and their roles within the company. 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 of FEG Holdings, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the company.

FEG Holdings Announces Resignation of Joint Company Secretary
Jul 31, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, announced the resignation of Mr. Ho Yuk Ming Hugo as joint company secretary, effective from July 31, 2025. Mr. Ho resigned to focus on other business engagements and personal commitments, and he confirmed no disagreements with the board. The company expressed gratitude for his contributions, and Mr. Yuen Sing Wai Lester will continue as the sole company secretary.

FEG Holdings Announces Board Composition and Committee Membership
Jul 21, 2025

FEG Holdings Corporation Limited has announced the composition of its board of directors, including both executive and independent non-executive directors. The company has also detailed the membership of its three board committees: the Audit, Nomination, and Remuneration committees. This announcement provides clarity on the governance structure of FEG Holdings, which is crucial for stakeholders to understand the decision-making processes and oversight within the company.

FEG Holdings Announces Executive Director Resignation
Jul 21, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, announced the resignation of Ms. Luo Tingting from her position as an executive director effective July 21, 2025. Ms. Luo is stepping down 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.

Kwong Luen Engineering Holdings Enhances Corporate Governance with New Nomination Committee Terms
Jul 21, 2025

Kwong Luen Engineering Holdings Limited has announced the adoption of terms of reference for its Nomination Committee, which is aligned with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The committee will consist of at least three members, primarily independent non-executive directors, and will be responsible for developing and reviewing the nomination policy, assessing board structure and diversity, and evaluating the independence of directors. This move is expected to enhance the company’s corporate governance practices and ensure a diverse and skilled board, which could positively impact its strategic direction and stakeholder confidence.

FEG Holdings Reports Significant Financial Losses for FY2024/25
Jul 18, 2025

FEG Holdings Corporation Limited, formerly known as Kwong Luen Engineering Holdings Limited, announced its financial results for the year ended March 31, 2025. The company reported a significant decline in revenue to approximately HK$405.0 million from HK$618.2 million the previous year, with a gross loss margin of 14.8%. The total comprehensive loss attributable to the owners was approximately HK$81.5 million, compared to a profit of HK$17.3 million in the prior year. The board decided not to declare a final dividend for the year. These results indicate a challenging financial period for the company, reflecting a downturn in its operational performance.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 09, 2025