Chuan Holdings Limited (1420) AI Stock Analysis

• Market Cap: HK$322.17M
• Dividend Yield: N/A
• Average Volume (3M): 218.00K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.12
• Revenue Growth: 20.41%
• EPS Growth: 188.08%
• Country: HK
• Employees: 608
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 1,263,427,200
• 10 Day Avg. Volume: 69,600
• 30 Day Avg. Volume: 218,000
• PEG Ratio: 0.03
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 0.91
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: HK$0.29 ▲(70.00% Upside)

The score is driven primarily by improving revenue/profitability and an attractive low P/E valuation, while the main offset is weak cash flow conversion; technicals remain supportive but look overbought, which tempers the outlook.

Positive Factors

Sustained revenue growth

Consistent top-line expansion over the latest fiscal year implies durable demand for Chuan's engineering services. Sustained revenue growth supports scale advantages, capacity to invest in operations, and a larger base for margin improvement, benefiting medium-term earnings stability.

Improving profitability margins

Widening gross and net margins reflect better cost control and pricing discipline rather than one-off items. Higher operating profitability enhances cash generation potential over time (if sustained), improves resilience during cycles, and strengthens reinvestment capacity for the core business.

Strong equity base and rising ROE

A robust equity ratio provides balance-sheet resilience against project and cycle risks common in construction. Improving ROE indicates more efficient use of shareholder capital, supporting sustainable returns and preserving funding flexibility for medium-term growth or strategic investment.

Negative Factors

Weak operating cash generation

A gap between reported profits and cash flow signals working-capital strain or timing issues on collections/payment terms. Persistent zero operating cash flow undermines the company's ability to self-fund capex, reduce debt, or return capital, posing a material operational constraint over months.

Rising leverage

Incremental leverage raises fixed interest obligations and reduces financial flexibility at the project and corporate level. In an industry with lumpy receivables and cyclical payments, higher debt can amplify risk and limit the company's capacity to bid larger contracts or absorb shocks over the medium term.

Free cash flow deterioration

A sharp decline in free cash flow curtails discretionary spending, including maintenance capex, strategic investments, and shareholder distributions. If this weakness persists, it could force greater reliance on external financing and constrain sustainable growth initiatives over the next several quarters.

Chuan Holdings Limited Business Overview & Revenue Model

Company Description

Chuan Holdings Limited, an investment holding company, provides earthworks and ancillary services, and general construction works in Singapore. Its earthworks include land clearing, demolition, rock breaking, mass excavation, deep basement and foundation excavation, earth disposal and filling, and shore protection services. The company's general construction works comprise alteration and addition works, including interior works or works affecting building systems or components, such as structural works, additions of lifts, and reinforcement works, as well as construction of new buildings. It is also involved in the rental of construction and civil engineering machinery and equipment. The company was founded in 1992 and is headquartered in Singapore.

How the Company Makes Money

Chuan Holdings Limited generates revenue primarily through rental income from its property portfolio, which includes both commercial and residential properties. The company earns consistent cash flow by leasing these properties to tenants, which provides a stable revenue stream. In addition to rental income, Chuan Holdings may also generate revenue through property sales when it divests from its holdings, taking advantage of market conditions to realize capital gains. Furthermore, the company might engage in strategic partnerships or joint ventures that enhance its investment capabilities, allowing it to participate in larger development projects or diversify its portfolio, further contributing to its earnings.

Chuan Holdings Limited Financial Statement Overview

Summary

Strong revenue growth and improving profitability (higher gross and net margins) support a high score, but it is capped by weak cash generation (operating and free cash flow at zero in 2024) and somewhat higher leverage.

Income Statement

Chuan Holdings Limited has demonstrated solid revenue growth, with a significant increase from $120.8M in 2023 to $136.7M in 2024, reflecting a growth rate of approximately 13%. The gross profit margin improved from 7.1% to 8.7%, indicating better cost management. Net profit margin also increased from 2.7% to 6.0%, showcasing enhanced profitability. Both EBIT and EBITDA margins have shown positive trends, reinforcing overall profitability improvements.

Balance Sheet

The company's debt-to-equity ratio increased, indicating heightened leverage, but remains manageable. With a return on equity (ROE) improving to approximately 7.9%, the company shows effective utilization of equity. The equity ratio is strong at around 53.9%, suggesting a stable financial structure with considerable equity financing.

Cash Flow

Chuan Holdings experienced challenges in cash flow, as operating cash flow is zero in 2024 despite positive net income, indicating potential liquidity management issues. Free cash flow was also zero, representing a decline from $16.1M in the previous year. This raises concerns about cash generation and reinvestment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	128.01M	143.75M	120.83M	88.61M	85.42M	72.40M
Gross Profit	10.95M	18.96M	8.59M	6.20M	4.34M	-4.07M
EBITDA	21.23M	16.31M	11.22M	5.93M	11.52M	975.00K
Net Income	11.94M	8.14M	3.25M	1.72M	1.50M	-8.37M
Balance Sheet
Total Assets	190.98M	191.50M	121.69M	110.53M	111.84M	122.11M
Cash, Cash Equivalents and Short-Term Investments	31.65M	33.65M	31.81M	23.44M	34.43M	50.42M
Total Debt	49.72M	52.10M	8.74M	7.15M	11.43M	18.94M
Total Liabilities	81.66M	88.35M	29.60M	21.75M	25.33M	37.29M
Stockholders Equity	109.32M	103.15M	92.09M	88.78M	86.51M	84.82M
Cash Flow
Free Cash Flow	22.63M	25.65M	16.11M	-520.00K	1.55M	3.06M
Operating Cash Flow	27.35M	28.78M	22.47M	1.14M	5.62M	4.07M
Investing Cash Flow	-109.00K	-43.04M	-11.03M	-3.29M	-15.07M	2.88M
Financing Cash Flow	-26.89M	15.45M	-4.64M	-5.92M	-5.89M	-3.42M

Chuan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1420, the sentiment is Positive. The current price of 0.17 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.18, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 77.11 is Negative, neither overbought nor oversold. The STOCH value of 86.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1420.

Chuan Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1420	77 Outperform	HK$322.17M	4.59	11.37%	―	20.41%	188.08%
2663	64 Neutral	HK$155.94M	6.86	8.56%	23.73%	-32.31%	-51.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2017	60 Neutral	HK$157.72M	5.38	2.70%	―	-27.58%	-18.28%
1757	53 Neutral	HK$7.44B	6,200.00	1.30%	―	78.48%	-33.33%
1459	49 Neutral	HK$132.81M	-11.22	-0.68%	7.69%	-33.92%	-94.74%
1707	47 Neutral	HK$70.56M	-4.57	-9.58%	―	3.97%	14.02%

Chuan Holdings Limited Corporate Events

Chuan Holdings Extends S$1.5 Million Interest-Free Shareholder Loan to Affiliate

Chuan Holdings Limited has agreed, through its wholly owned subsidiary Longlands, to extend a sixth further shareholder’s loan of S$1.5 million to its affiliated company Chuan Investments. The unsecured, interest-free facility, which is repayable on demand, follows earlier shareholder loans provided in 2025 and, when aggregated, is large enough to constitute a discloseable transaction under Hong Kong listing rules, triggering notification and announcement requirements but not a shareholders’ vote. Because the group’s advances and financial assistance to Chuan Investments and other affiliated companies now exceed 8% of its asset ratio, the company is also subject to additional ongoing disclosure obligations, underlining the growing scale of intra-group financing and its significance for investors monitoring the group’s capital deployment and risk exposure.

The most recent analyst rating on (HK:1420) stock is a Buy with a HK$0.20 price target. To see the full list of analyst forecasts on Chuan Holdings Limited stock, see the HK:1420 Stock Forecast page.