Chuan Holdings Limited (1420) AI Stock Analysis

• Market Cap: HK$178.14M
• Dividend Yield: N/A
• Average Volume (3M): 226.13K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.06
• Revenue Growth: 19.15%
• EPS Growth: 106.56%
• Country: HK
• Employees: 608
• Sector: Industrials
• Sector Strength: 92
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 1,263,427,200
• 10 Day Avg. Volume: 279,200
• 30 Day Avg. Volume: 226,133
• PEG Ratio: 0.03
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.58
• 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: 1

• Rating: 63 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

Chuan Holdings Limited shows strong financial performance with solid revenue and profit growth. However, technical indicators suggest an overbought condition, indicating potential for a price correction. Valuation metrics reveal a potentially undervalued stock, but cash flow challenges present a risk.

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 the provision of construction and civil engineering services. The company's main revenue streams include income from earthworks and general construction projects. These projects often involve large-scale contracts with government bodies or private developers, providing stable and recurring income. Additionally, the company may engage in ancillary services that complement their core offerings, such as the rental of construction equipment or vehicles, which further contributes to their overall earnings. Strategic partnerships with other construction firms or government entities can enhance their project portfolio, enabling them to bid for larger projects and secure long-term contracts, thereby bolstering revenue.

Chuan Holdings Limited Financial Statement Overview

Summary

Chuan Holdings Limited has demonstrated solid revenue and profit growth, with improved margins indicating operational efficiency. However, the increase in leverage and cash flow challenges suggest caution regarding liquidity management.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.75M	120.83M	88.61M	85.42M	72.40M
Gross Profit	18.96M	8.59M	6.20M	4.34M	-4.07M
EBITDA	16.31M	11.22M	3.75M	11.52M	975.00K
Net Income	8.14M	3.25M	1.72M	1.50M	-8.37M
Balance Sheet
Total Assets	191.50M	121.69M	110.53M	111.84M	122.11M
Cash, Cash Equivalents and Short-Term Investments	33.65M	31.81M	26.90M	34.43M	50.42M
Total Debt	52.10M	8.74M	7.15M	11.43M	18.94M
Total Liabilities	88.35M	29.60M	21.75M	25.33M	37.29M
Stockholders Equity	103.15M	92.09M	88.78M	86.51M	84.82M
Cash Flow
Free Cash Flow	25.65M	16.11M	-520.00K	1.55M	3.06M
Operating Cash Flow	28.78M	22.47M	1.14M	5.62M	4.07M
Investing Cash Flow	-43.04M	-11.03M	-3.29M	-15.07M	2.88M
Financing Cash Flow	15.45M	-4.64M	-5.92M	-5.89M	-3.42M

Chuan Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 0.14 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 79.65 is Neutral, 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
2663	72 Outperform	HK$192.14M	5.32	13.06%	46.38%	23.89%	26.19%
Sector *	65 Neutral	$10.89B	15.56	5.22%	1.87%	3.09%	-26.84%
2017	65 Neutral	HK$185.55M	5.32	2.78%	―	-8.97%	-12.59%
1420	63 Neutral	HK$178.14M	3.70	8.41%	―	19.15%	106.56%
1757	53 Neutral	HK$148.80M	137.78	1.19%	―	-34.92%	―
1459	52 Neutral	HK$184.01M	33.82	0.31%	5.80%	-20.04%	-58.20%
1707	51 Neutral	HK$179.76M	―	-9.34%	―	-40.18%	3.09%

Chuan Holdings Limited Corporate Events

Chuan Holdings Limited Strengthens Governance with New Nomination Committee Appointments

Chuan Holdings Limited has announced the appointment of two new members to its Nomination Committee, effective June 26, 2025. Ms. Ong Sok Hun, the company’s chief financial officer and executive director, and Mr. Wee Hian Eng Cyrus, an independent non-executive director, have been appointed to the committee. This strategic move is expected to enhance the company’s governance and strengthen its board’s decision-making capabilities.

Chuan Holdings Limited Announces Board and Committee Structure

Chuan Holdings Limited has announced the composition of its board of directors and the establishment of three committees: Audit, Remuneration, and Nomination. This organizational structure aims to enhance governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder engagement.

Chuan Holdings Limited AGM Resolutions Unanimously Approved

Chuan Holdings Limited, a company incorporated in the Cayman Islands, announced the successful passing of all resolutions during its Annual General Meeting held on May 30, 2025. These resolutions included the adoption of the audited financial statements for the year ending December 31, 2024, the re-election of several directors, the authorization of director remunerations, the re-appointment of Ernst & Young LLP as auditors, and the granting of buy-back and issue mandates to the directors. The unanimous approval of these resolutions by shareholders, with no votes against, signifies strong support for the company’s current management and strategic direction.

Chuan Holdings Limited Announces 2025 AGM and Key Resolutions

Chuan Holdings Limited has announced its upcoming Annual General Meeting (AGM) scheduled for May 30, 2025, in Singapore. Key agenda items include the adoption of financial statements for 2024, re-election of directors, and re-appointment of Ernst & Young LLP as auditors. Additionally, the company seeks approval for a share buyback plan, allowing the purchase of up to 10% of its issued shares, which could impact its market positioning and shareholder value.