SFK Construction Holdings Ltd. (1447) AI Stock Analysis

• Market Cap: HK$182.00M
• Dividend Yield: 15.38%
• Average Volume (3M): 41.87K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.07
• Revenue Growth: 13.59%
• EPS Growth: -12.52%
• Country: HK
• Employees: 1,063
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 32,200
• 30 Day Avg. Volume: 41,866
• PEG Ratio: 0.88
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -1.43
• 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: 62 Neutral
• Price Target: HK$0.50 ▲(8.70% Upside)

The stock's overall score is primarily influenced by its strong valuation, with an attractive P/E ratio and high dividend yield. However, financial performance is moderate due to cash flow challenges and operational inefficiencies. Technical analysis indicates bearish momentum, which is a significant risk factor.

Positive Factors

Revenue Growth

SFK Construction's strong revenue growth indicates robust demand for its services and effective execution of projects, supporting long-term business expansion.

Balance Sheet Health

A moderate debt-to-equity ratio reflects prudent financial management, providing stability and flexibility for future investments and growth opportunities.

Profitability Metrics

Improved gross profit margins suggest enhanced cost management, which can lead to better profitability and competitive positioning over time.

Negative Factors

Cash Flow Volatility

Volatile cash flow from operations can strain liquidity and limit the company's ability to invest in growth initiatives, posing a risk to long-term sustainability.

Declining Asset Levels

Declining asset levels may hinder the company's capacity to expand operations and take on new projects, affecting its growth trajectory.

Operational Efficiency

Low EBIT and EBITDA margins indicate inefficiencies that could impact profitability. Enhancing operational efficiency is crucial for sustaining competitive advantage.

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 contracts, which encompass a wide range of projects from residential buildings to large-scale infrastructure initiatives. The company's revenue model is based on fixed-price contracts, cost-plus contracts, and time and materials agreements, allowing for flexibility in pricing based on project scope and requirements. Key revenue streams include project execution fees, management and consultancy services, and ongoing maintenance contracts. Additionally, SFK Construction Holdings Ltd. may benefit from strategic partnerships with suppliers and subcontractors, enhancing its operational efficiency and cost-effectiveness, which in turn contributes to its profitability.

SFK Construction Holdings Ltd. Financial Statement Overview

Summary

The company 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 hinder 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.94B	4.61B	3.85B	3.67B	3.62B	3.77B
Gross Profit	113.11M	101.19M	97.90M	77.41M	85.71M	-39.92M
EBITDA	55.35M	71.07M	63.16M	76.51M	67.53M	10.55M
Net Income	24.30M	27.77M	25.32M	18.73M	17.43M	-18.97M
Balance Sheet
Total Assets	1.77B	1.64B	1.94B	1.62B	1.80B	2.15B
Cash, Cash Equivalents and Short-Term Investments	192.71M	194.97M	348.96M	262.56M	236.84M	449.83M
Total Debt	456.68M	326.09M	270.49M	75.28M	116.60M	267.78M
Total Liabilities	1.41B	1.27B	1.57B	1.24B	1.43B	1.75B
Stockholders Equity	363.21M	370.91M	371.14M	371.82M	375.09M	397.66M
Cash Flow
Free Cash Flow	-86.03M	-165.00M	-58.95M	96.58M	-30.04M	490.75M
Operating Cash Flow	-79.19M	-159.67M	-53.47M	104.99M	-18.31M	493.11M
Investing Cash Flow	-5.05M	6.49M	-2.12M	-6.13M	-6.79M	-1.02M
Financing Cash Flow	78.51M	-2.75M	141.90M	-72.99M	-188.04M	-306.31M

SFK Construction Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.46
• 50DMA: Negative
• 100DMA: Negative
• 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:1447, the sentiment is Negative. The current price of 0.46 is below the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.46, and below the 200-day MA of 0.52, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.10 is Neutral, neither overbought nor oversold. The STOCH value of 53.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
1582	65 Neutral	HK$172.50M	4.09	6.32%	9.71%	27.42%	-32.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$182.00M	7.48	6.66%	15.38%	13.59%	-12.52%
1865	49 Neutral	HK$224.33M	-2.80	-16.00%	―	9.19%	84.15%
6182	49 Neutral	HK$592.00M	1,233.33	0.47%	―	144.67%	―
1547	47 Neutral	HK$159.20M	16.58	5.64%	2.58%	27.88%	1.69%