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

Kwong Luen Engineering Holdings Limited (1413) AI Stock Analysis

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HK:1413

Kwong Luen Engineering Holdings Limited

(1413)

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Neutral 47 (OpenAI - 4o)
Rating:47Neutral
Price Target:
HK$0.09
▼(-6.00% Downside)
The overall stock score of 47 reflects significant financial challenges, particularly in revenue generation and profitability. Technical analysis shows mixed signals with a short-term uptrend, but valuation concerns persist due to a negative P/E ratio and lack of dividend yield. The absence of earnings call and corporate events data limits further insights.
Positive Factors
Low Leverage
Low leverage provides financial stability and flexibility, allowing the company to navigate challenging market conditions without significant debt burden.
Stable Capital Structure
A stable capital structure indicates a strong foundation for long-term operations, supporting potential future growth and investment opportunities.
Efficient Cash Conversion
Positive cash conversion efficiency suggests the company can effectively turn earnings into cash, supporting ongoing operations and potential reinvestment.
Negative Factors
Declining Revenue
A substantial decline in revenue indicates potential loss of market share or demand, posing risks to long-term growth and profitability.
Negative Profit Margins
Negative profit margins highlight operational inefficiencies and cost management issues, threatening the company's ability to sustain profitability.
Cash Flow Challenges
Negative cash flows indicate difficulties in maintaining liquidity and funding operations, potentially affecting the company's financial health and growth prospects.

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 (1413) is a Hong Kong-based company primarily engaged in the provision of engineering services, particularly in the areas of mechanical and electrical engineering. The company operates within the construction and engineering sectors, focusing on the installation, maintenance, and repair of various systems and equipment. Its core products and services include HVAC systems, electrical installations, plumbing works, and other related engineering solutions catering to commercial and residential projects.
How the Company Makes MoneyKwong Luen Engineering Holdings Limited generates revenue through multiple streams, primarily by offering engineering and construction services. The company's revenue model is centered around project contracts, where it earns income from the installation and maintenance of mechanical and electrical systems. Key revenue streams include fixed-price contracts, where the company agrees to a set fee for specific services, and time-and-material contracts, which charge clients based on the actual costs incurred plus a margin. Additionally, the company may also earn revenue from long-term maintenance agreements and service contracts with clients. Significant partnerships with construction firms and property developers further enhance its revenue opportunities, as they provide consistent project pipelines and collaborative ventures in larger construction projects.

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 cash flow analysis highlights negative operating and free cash flows. Despite a stable balance sheet with low leverage, the overall financial performance is concerning.
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
Negative
Last Price0.10
Price Trends
50DMA
0.10
Negative
100DMA
0.09
Positive
200DMA
0.08
Positive
Market Momentum
MACD
<0.01
Positive
RSI
28.96
Positive
STOCH
21.90
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 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.10, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 28.96 is Positive, neither overbought nor oversold. The STOCH value of 21.90 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
HK$95.92M19.801.45%-19.27%-47.47%
58
Neutral
HK$110.24M95.000.82%12.66%57.78%-78.95%
48
Neutral
HK$135.56M-9.58%-9.82%-309.09%
47
Neutral
HK$127.40M-1.33-40.10%-70.99%-2916.67%
47
Neutral
HK$278.21M-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
1.80
1.37
318.60%
HK:3878
Vicon Holdings Limited
0.23
0.00
0.00%
HK:6080
Wing Chi Holdings Limited
0.12
0.07
140.00%
HK:1690
Lap Kei Engineering (Holdings) Limited
0.08
0.02
25.40%

Kwong Luen Engineering Holdings Limited Corporate Events

FEG Holdings Partners with PolyU to Launch Innovation Centre for Stablecoins and Digital Assets
Dec 4, 2025

FEG Holdings Corporation Limited, through its subsidiary TGG Digital Limited, has entered into a collaboration with The Hong Kong Polytechnic University to establish an innovation center focused on stablecoins and real-world asset tokenization. This initiative aims to enhance Hong Kong’s competitiveness in the digital asset sector by developing regulatory-compliant frameworks, promoting AI-powered tokenization, and exploring global market opportunities. The collaboration is expected to strengthen the company’s technological capabilities, expand its influence in the digital asset ecosystem, and drive new business growth through cross-border digital asset services.

FEG Holdings Completes HK$19 Million Share Placement
Dec 1, 2025

FEG Holdings Corporation Limited, incorporated in the Cayman Islands, announced the completion of a placing of 240,000,000 new shares under a general mandate. The placing, which was completed on December 1, 2025, raised approximately HK$19.0 million in net proceeds, which will be used for general working capital purposes such as rental payments, staff costs, and other administrative expenses. The new shares represent about 14.63% of the company’s enlarged share capital, and the placees are independent third parties, ensuring no substantial shareholder emerged from this transaction.

FEG Holdings Releases Interim Results for 2025
Nov 28, 2025

FEG Holdings Corporation Limited, incorporated in the Cayman Islands, has announced its unaudited interim results for the six months ending September 30, 2025. The announcement, which adheres to the Hong Kong Stock Exchange’s listing rules, provides a comprehensive overview of the company’s financial performance and governance practices during the reporting period. This release is accessible on both the Stock Exchange’s and the company’s websites, with a printed version to be distributed to shareholders.

FEG Holdings Announces EGM for Auditor Appointment and Share Consolidation
Nov 26, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, has announced an Extraordinary General Meeting (EGM) to be held on December 12, 2025. The meeting will address the appointment of Infinity CPA Limited as the company’s auditor and a proposal for share consolidation. The share consolidation involves converting every five issued and unissued shares with a par value of HK$0.01 into one share with a par value of HK$0.05, effectively reducing the number of shares while maintaining the same total share capital. This move is likely aimed at optimizing the company’s share structure and potentially enhancing shareholder value.

FEG Holdings Appoints New Executive Director
Nov 21, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, has announced the appointment of Mr. Li Yujia as an executive director effective from November 21, 2025. Mr. Li, who holds a Bachelor of Business Administration degree and has significant experience in business management and investment, will serve a three-year term. His appointment is expected to strengthen the company’s leadership team, with Mr. Li holding 30,500,000 shares in the company. This strategic move may enhance the company’s operational capabilities and potentially influence its market positioning.

FEG Holdings Announces Board Composition and Roles
Nov 21, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their respective roles and functions. The board consists of both executive and independent non-executive directors, with specific members assigned to the audit, nomination, and remuneration committees. This announcement clarifies the governance structure of the company, potentially impacting its strategic decision-making and stakeholder confidence.

FEG Holdings Proposes Share Consolidation and Board Lot Size Change
Nov 21, 2025

FEG Holdings Corporation Limited has announced a proposed share consolidation and change in board lot size. The company plans to consolidate every five existing shares into one consolidated share, increasing the par value from HK$0.01 to HK$0.05. Additionally, the board lot size for trading on the Stock Exchange will change from 5,000 existing shares to 7,000 consolidated shares, contingent upon the share consolidation’s effectiveness. This move is not expected to materially affect the company’s financial position or shareholder interests, aside from fractional shares adjustments.

FEG Holdings Issues Profit Warning Amid Decreased Revenue
Nov 21, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, has issued a profit warning for the six months ending September 30, 2025. The company anticipates a significant increase in consolidated losses, ranging from HK$20 million to HK$30 million, compared to a loss of HK$4.8 million in the same period of 2024. This increase is attributed to a decrease in revenue from fewer large construction and renovation projects, as well as a reduced gross profit margin due to ongoing projects related to the Hong Kong International Airport’s three-runway system. Stakeholders are advised to exercise caution, as the interim results are still being finalized and may be subject to adjustments.

FEG Holdings Schedules Board Meeting for Interim Results and Dividend Consideration
Nov 17, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, has announced that its Board of Directors will convene a meeting on November 28, 2025. The agenda for this meeting includes the approval of the company’s unaudited interim results for the six months ending September 30, 2025, and the consideration of an interim dividend declaration.

FEG Holdings Appoints New Authorized Representative
Nov 13, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, has announced the appointment of Mr. Yang Zhenwei as an authorized representative. This appointment fills a casual vacancy and ensures compliance with the requirement of having two authorized representatives under the Listing Rules, effective from November 13, 2025.

Kwong Luen Engineering Announces Share Placement to Raise HK$19 Million
Nov 10, 2025

Kwong Luen Engineering Holdings Limited has announced a placement of new shares under a general mandate, involving up to 240,000,000 new shares at a price of HK$0.083 per share. The placement is expected to raise approximately HK$19.0 million, which will be used for general working capital. The placement is contingent upon approval from the Stock Exchange’s Listing Committee, and the shares will be placed to at least six independent investors. This move represents a strategic effort to bolster the company’s financial resources, potentially enhancing its operational capacity and market positioning.

FEG Holdings Announces Board Composition and Roles
Oct 8, 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 the company, potentially impacting its strategic direction and stakeholder confidence.

Kwong Luen Engineering Updates Corporate Governance Framework
Oct 8, 2025

Kwong Luen Engineering Holdings Limited has announced amendments to its Memorandum and Articles of Association, reflecting changes in its corporate governance structure. These amendments, adopted by a special resolution, cover various aspects of the company’s operations, including shares, management, and financial procedures, potentially impacting shareholder rights and corporate management.

FEG Holdings Announces Leadership and Auditor Changes
Oct 8, 2025

FEG Holdings Corporation Limited has announced key changes to its leadership and committee structures. Ms. Yang Yuangui has been appointed as an executive director and co-chairperson of the board, bringing extensive experience in the communications and technology industries. Additionally, she and Chan Siu Kei Ken have joined the company’s nomination committee. The board also proposes the appointment of Infinity CPA Limited as the new auditor, replacing Linksfield CPA Limited, pending shareholder approval at the upcoming extraordinary general meeting.

FEG Holdings Completes Share Placing to Bolster Working Capital
Sep 26, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, announced the completion of a placing of 200,000,000 new shares under a general mandate. The shares were issued at a price of HK$0.063 each, raising net proceeds of approximately HK$12.1 million, which will be used for general working capital. The placing represents about 14.29% of the company’s enlarged share capital, with no placee becoming a substantial shareholder. This move is part of the company’s ongoing efforts to strengthen its financial position and support operational needs.

FEG Holdings Announces AGM Results and Director Retirements
Sep 18, 2025

FEG Holdings Corporation Limited, incorporated in the Cayman Islands, recently held its 2025 Annual General Meeting where several resolutions were voted on by shareholders. The meeting resulted in the approval of most resolutions, including the adoption of financial statements and the re-election of several directors, while some resolutions, including the re-election of certain directors, were not passed. Additionally, the company announced the retirement of several directors, which may impact its board composition and strategic direction.

FEG Holdings Announces Board of Directors and Committee Roles
Sep 18, 2025

FEG Holdings Corporation Limited, a company incorporated in the Cayman Islands, has announced its current board of directors and their roles within the company. The board consists of both executive and independent non-executive directors, with Yang Zhenwei serving as the Chairman. The announcement also details the composition of three key board committees: the Audit Committee, the Nomination Committee, and the Remuneration Committee, highlighting the leadership roles within each committee. This update provides clarity on the governance structure of FEG Holdings, which is crucial for stakeholders to understand the company’s leadership and decision-making framework.

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.

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: Nov 15, 2025