Kwong Luen Engineering Holdings Limited (1413) AI Stock Analysis

• Market Cap: HK$87.60M
• Dividend Yield: N/A
• Average Volume (3M): 12.88M
• Price to Earnings (P/E): 21.7
• Beta (1Y): -0.02
• Revenue Growth: 63.90%
• EPS Growth: -79.02%
• Country: HK
• Employees: 173
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): -0.07
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 11,193,500
• 30 Day Avg. Volume: 12,879,833
• PEG Ratio: -0.29
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.45
• 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

• Rating: 60 Neutral
• Price Target: ―

Kwong Luen Engineering Holdings Limited shows promising revenue growth and improved profitability, which are positive indicators of its operational performance. However, its negative cash flow is a significant risk factor, and technical indicators suggest a bearish market sentiment. The valuation appears high with a P/E ratio of 26.0, and the absence of a dividend yield limits its attractiveness for income investors. These factors combined lead to a score of 60, reflecting moderate prospects with notable risks.

Kwong Luen Engineering Holdings Limited Business Overview & Revenue Model

Company Description

Kwong 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 Money

Kwong Luen Engineering Holdings Limited generates revenue through its comprehensive portfolio of engineering and construction services. The company's primary revenue streams include project contracts awarded by government bodies and private sector organizations. These contracts cover a variety of engineering projects, ranging from infrastructure development to maintenance and repair work. The company leverages its expertise in civil engineering to secure long-term contracts and partnerships, ensuring a steady flow of income. Additionally, strategic collaborations and joint ventures with other construction and engineering firms may enhance its project capabilities and expand its market reach, further contributing to its financial 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	651.76M	618.19M	338.32M	548.84M	481.71M	404.82M
Gross Profit	31.43M	34.76M	11.91M	46.17M	60.82M	52.22M
EBITDA	20.77M	36.90M	13.93M	50.80M	51.31M	54.21M
Net Income	2.79M	17.26M	1.00M	23.52M	31.13M	38.41M
Balance Sheet
Total Assets	396.08M	381.17M	292.71M	310.07M	282.67M	115.04M
Cash, Cash Equivalents and Short-Term Investments	18.36M	25.15M	25.36M	42.65M	107.65M	15.05M
Total Debt	16.29M	31.07M	3.13M	23.72M	18.37M	4.14M
Total Liabilities	98.82M	114.79M	43.59M	61.95M	58.07M	34.22M
Stockholders Equity	297.25M	266.38M	249.12M	248.12M	224.60M	80.82M
Cash Flow
Free Cash Flow	-53.82M	-37.95M	-1.75M	-68.92M	-34.31M	14.46M
Operating Cash Flow	-53.82M	-29.47M	10.00M	-27.67M	-20.32M	27.24M
Investing Cash Flow	10.09M	2.67M	-6.69M	-41.26M	-13.96M	-15.29M
Financing Cash Flow	34.58M	26.59M	-20.59M	3.92M	126.88M	-593.00K

Kwong Luen Engineering Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.07 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.07, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.64 is Neutral, neither overbought nor oversold. The STOCH value of 68.75 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6080	67 Neutral	HK$90.57M	19.79	3.32%	―	58.64%	106.25%
1413	60 Neutral	HK$87.60M	21.67	-33.39%	―	63.90%	-79.02%
1690	58 Neutral	HK$89.93M	44.29	1.37%	15.87%	28.46%	-71.43%
Sector *	58 Neutral	HK$15.00B	4.65	-2.78%	5.84%	3.80%	-54.57%
3878	57 Neutral	HK$69.54M	14.36	1.80%	―	-46.10%	-38.04%
1751	48 Neutral	HK$88.30M	182.50	2.09%	―	-19.85%	-71.83%
8523	―	HK$90.40M	―		―	―	―

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.