SFK Construction Holdings Ltd. (1447) AI Stock Analysis

• Market Cap: HK$228.00M
• Dividend Yield: 14.04%
• Average Volume (3M): 54.67K
• Price to Earnings (P/E): 8.2
• Beta (1Y): 0.10
• Revenue Growth: 19.67%
• EPS Growth: 9.64%
• Country: HK
• Employees: 1,063
• Sector: Industrials
• Sector Strength: 83
• Industry: Engineering & Construction
• EPS (TTM): 0.07
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 73,000
• 30 Day Avg. Volume: 54,666
• PEG Ratio: 1.66
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.36
• 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: 72 Outperform
• Price Target: ―

SFK Construction Holdings Ltd. receives a solid score due to its strong revenue growth and attractive valuation. The stock's technical indicators show positive trends, but challenges in cash flow stability and operational efficiency present risks. The company's high dividend yield and low P/E ratio enhance its investment appeal, despite potential growth limitations from declining asset levels.

SFK Construction Holdings Ltd. Business Overview & Revenue Model

Company Description

SFK Construction Holdings Limited, an investment holding company, engages in the construction and maintenance of building and civil engineering projects primarily in Hong Kong. It operates through three segments: General Building, Civil Engineering, and Others. The company undertakes construction projects in Macau under the SFK brand. It also offers engineering services for substructure or superstructure of building structures and infrastructure facilities; and maintenance, repair, addition, and alteration services to building structures and infrastructure facilities, as well as undertakes road construction works. In addition, the company provides housing and property management services, such as cleaning and security management, fresh water and flush water maintenance, sewage water sampling, electrical and mechanical engineering, and building information modeling, as well as consultancy services. It serves customers in the public and private sectors. The company was incorporated in 2007 and is headquartered in Kwai Chung, Hong Kong. SFK Construction Holdings Limited is a subsidiary of Sun Fook Kong Group Limited.

How the Company Makes Money

SFK Construction Holdings Ltd. generates revenue primarily through its construction and engineering services. The company's key revenue streams include project fees from building construction contracts, civil engineering projects, and facility management services. These projects often involve long-term contracts with both government and private sector clients, ensuring a steady stream of income. Additionally, SFK Construction may engage in strategic partnerships and joint ventures to expand its project portfolio and enhance its service offerings, thus contributing to its earnings. The company's ability to deliver projects on time and within budget is an essential factor in maintaining its competitive edge and profitability in the construction industry.

SFK Construction Holdings Ltd. Financial Statement Overview

Summary

SFK Construction Holdings Ltd. shows strong revenue growth and improving profitability metrics, but faces challenges in cash flow stability and operational efficiency. The balance sheet is stable, yet declining asset levels could impede future growth.

Income Statement

The company has shown consistent revenue growth, with a significant increase of 19.67% from 2023 to 2024. Gross profit margin improved slightly, indicating better cost management. However, both EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements. Net profit margin remains modest, highlighting some profitability challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. Return on equity has improved, reflecting better utilization of shareholder funds. The equity ratio is stable, indicating a solid equity base relative to total assets. However, the decrease in total assets over the years could be a concern for future growth.

Cash Flow

Cash flow from operations has been volatile, with negative figures in recent years, potentially affecting liquidity. Free cash flow growth is not calculable due to frequent negative values, raising concerns about sustainability. The operating cash flow to net income ratio is not available, limiting insights into cash generation efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.61B	3.85B	3.67B	3.62B	3.77B
	Gross Profit
101.19M	97.90M	77.41M	85.71M	-39.92M
	EBIT
47.01M	40.91M	49.32M	25.29M	-21.08M
	EBITDA
71.07M	63.16M	76.51M	67.53M	10.55M
	Net Income Common Stockholders
27.77M	25.32M	18.73M	17.43M	-18.97M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
194.97M	348.96M	262.56M	236.84M	449.83M
	Total Assets
1.64B	1.94B	1.62B	1.80B	2.15B
	Total Debt
326.09M	270.49M	75.28M	116.60M	267.78M
	Net Debt
131.12M	-78.47M	-187.28M	-120.23M	-182.05M
	Total Liabilities
1.27B	1.57B	1.24B	1.43B	1.75B
	Stockholders Equity
370.91M	371.14M	371.82M	375.09M	397.66M
Cash Flow		Free Cash Flow
-165.00M	-58.95M	96.58M	-30.04M	490.75M
	Operating Cash Flow
-173.47M	-53.47M	104.99M	-18.31M	493.11M
	Investing Cash Flow
6.49M	-2.12M	-6.13M	-6.79M	-1.02M
	Financing Cash Flow
0.00	141.90M	-72.99M	-188.04M	-306.31M

SFK Construction Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.57
• 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:1447, the sentiment is Neutral. The current price of 0.57 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.55, and above the 200-day MA of 0.53, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.98 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1447.

SFK Construction Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1447	72 Outperform	HK$228.00M	8.21	7.49%	14.04%	19.67%	9.64%
1582	69 Neutral	HK$215.00M	4.00	8.43%	6.98%	11.39%	-25.31%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
1547	57 Neutral	HK$208.00M	22.03	5.86%	3.85%	24.88%	―
1865	52 Neutral	HK$213.65M	―	-17.29%	―	-20.23%	-1808.04%
6182	46 Neutral	HK$224.00M	―	-16.26%	―	-10.76%	54.43%

SFK Construction Holdings Ltd. Corporate Events

SFK Construction Holdings Ltd. Announces AGM and Key Resolutions

SFK Construction Holdings Ltd. has announced its Annual General Meeting (AGM) scheduled for May 22, 2025, where shareholders will consider various resolutions. These include adopting financial statements, re-electing directors, authorizing director remuneration, re-appointing auditors, and declaring a final dividend. Additionally, a mandate will be discussed to allow directors to issue shares, potentially impacting the company’s capital structure and market activities.

SFK Construction Holdings Reports Increased Revenue and Profit for 2024

SFK Construction Holdings Ltd. announced its annual results for the year ended 31 December 2024, reporting a revenue increase to HKD 4.61 billion from HKD 3.85 billion in 2023. Despite higher finance costs, the company achieved a profit of HKD 27.95 million, up from HKD 25.74 million in the previous year, indicating a stable financial performance and potential positive implications for stakeholders.

SFK Construction Holdings Ltd. Announces Final Dividend for 2024

SFK Construction Holdings Ltd. has announced a final ordinary cash dividend of HKD 0.04 per share for the financial year ending 31 December 2024. This announcement reflects the company’s financial health and commitment to returning value to its shareholders. The ex-dividend date is set for 30 May 2025, with payment scheduled for 20 June 2025, indicating a stable financial outlook and reinforcing its market position.