Chuan Holdings Limited (1420) AI Stock Analysis

• Market Cap: HK$223.63M
• Dividend Yield: N/A
• Average Volume (3M): 218.00K
• Price to Earnings (P/E): 3.2
• Beta (1Y): 0.04
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

Chuan Holdings Limited's strong financial performance, particularly in revenue and profit growth, is a significant positive factor. However, cash flow challenges and increased leverage warrant caution. The stock's undervaluation presents an opportunity, but technical indicators suggest a stable yet cautious market outlook.

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

Chuan Holdings Limited has demonstrated solid revenue growth and improved profit margins, which indicate operational efficiency. However, cash flow challenges and increased leverage suggest caution, despite a strong equity position and profitability.

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	5.93M	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	23.44M	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: 0.18
• 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 0.18 is below the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.17, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.61 is Neutral, neither overbought nor oversold. The STOCH value of 37.80 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
1420	74 Outperform	HK$223.63M	3.18	11.37%	―	20.41%	188.08%
2017	69 Neutral	HK$173.18M	5.91	2.70%	―	-27.58%	-18.28%
2663	65 Neutral	HK$169.86M	4.85	13.06%	22.58%	0.25%	-22.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1757	53 Neutral	HK$510.00M	472.22	1.19%	―	20.78%	-55.00%
1459	48 Neutral	HK$138.67M	-11.71	-0.68%	7.69%	-33.92%	-94.74%
1707	41 Neutral	HK$92.40M	―	-9.58%	―	3.97%	14.02%

Chuan Holdings Limited Corporate Events

Chuan Holdings Limited Reports Strong Interim Results with Increased Profitability

Chuan Holdings Limited reported its unaudited consolidated interim results for the six months ending June 30, 2025, showing a significant increase in net profit attributable to owners, reaching S$6.166 million compared to S$2.371 million in the previous year. The company’s revenue decreased from S$63.505 million to S$54.861 million, but an increase in rental income and a reduction in cost of sales contributed to the improved profitability, indicating a positive impact on its financial performance and stakeholder interests.