C Cheng Holdings Ltd. (1486) AI Stock Analysis

• Market Cap: HK$250.79M
• Dividend Yield: N/A
• Average Volume (3M): 64.67K
• Price to Earnings (P/E): 4.5
• Beta (1Y): -0.07
• Revenue Growth: 4.56%
• EPS Growth: N/A
• Country: HK
• Employees: 615
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.14
• Shares Outstanding: 432,391,170
• 10 Day Avg. Volume: 35,000
• 30 Day Avg. Volume: 64,666
• PEG Ratio: 0.17
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 7.35
• 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: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$0.50 ▼(-15.25% Downside)

C Cheng Holdings Ltd. has a challenging financial position with declining revenues and profitability issues, which significantly impact its stock score. Despite strong technical momentum, the overbought RSI suggests caution. The low P/E ratio indicates potential undervaluation, but the lack of dividend yield is a downside for income-focused investors.

Positive Factors

Market Diversification

Diversifying into hospitality and leisure can mitigate risks associated with the property market, providing new revenue streams and enhancing long-term stability.

Steady Revenue Stream

Rental income from investment properties offers a reliable revenue base, supporting financial stability and cash flow predictability over time.

Strategic Partnerships

Strategic partnerships can enhance market reach and resource sharing, enabling the company to undertake larger projects and improve competitive positioning.

Negative Factors

Declining Revenue

Continued revenue decline suggests weakening market position and demand, potentially impacting long-term growth and profitability.

Negative Cash Flow

Consistent negative cash flow challenges liquidity and operational sustainability, limiting the company's ability to invest in growth opportunities.

Profitability Challenges

Persistent profitability issues can erode financial health, reducing the company's ability to reinvest in business development and innovation.

C Cheng Holdings Ltd. Business Overview & Revenue Model

Company Description

C Cheng Holdings Ltd. (1486) is a Hong Kong-based investment holding company primarily engaged in property development and investment. The company focuses on residential and commercial real estate projects, leveraging its expertise in the property market to create value through strategic acquisitions and developments. C Cheng Holdings also explores opportunities in other sectors, including hospitality and leisure, aiming to diversify its portfolio and enhance shareholder returns.

How the Company Makes Money

C Cheng Holdings generates revenue primarily through the sale and leasing of developed properties. The company undertakes property development projects, investing in land acquisition, construction, and subsequent sales of residential and commercial units. Additionally, it earns rental income from its investment properties, which provides a steady revenue stream. The company may also engage in joint ventures or partnerships with other developers or investors to expand its market reach and capitalize on larger projects. Other potential revenue sources include management fees from associated companies and ancillary services related to property management.

C Cheng Holdings Ltd. Financial Statement Overview

Summary

C Cheng Holdings Ltd. faces significant financial challenges, with declining revenues, negative profitability, and cash flow issues. The balance sheet shows moderate debt levels but declining assets and equity, posing financial instability risks.

Income Statement

C Cheng Holdings Ltd. has experienced declining revenues over recent years, with a significant drop from 2020 to 2024. The gross profit margin has decreased, indicating reduced efficiency in production. Negative EBIT and net income margins highlight ongoing profitability challenges, with consistent net losses over the past three years.

Balance Sheet

The company maintains a relatively stable equity base with a moderate debt-to-equity ratio. However, declining total assets and equity in recent years suggest potential financial instability. The equity ratio remains healthy, indicating a good proportion of assets financed by equity.

Cash Flow

C Cheng Holdings Ltd. has struggled with negative operating and free cash flows, indicating cash management issues. The lack of consistent positive cash flow generation poses a risk to liquidity and operational sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	376.89M	401.30M	454.25M	533.76M	861.99M	717.17M
Gross Profit	69.73M	62.24M	58.54M	71.42M	162.73M	133.35M
EBITDA	17.16M	-6.52M	2.46M	18.59M	74.89M	81.98M
Net Income	48.17M	-14.85M	-21.24M	-18.80M	-1.14M	9.50M
Balance Sheet
Total Assets	703.78M	619.88M	683.20M	834.20M	903.52M	884.27M
Cash, Cash Equivalents and Short-Term Investments	108.49M	82.58M	97.11M	172.84M	215.33M	257.36M
Total Debt	108.74M	97.53M	118.84M	147.27M	183.75M	180.01M
Total Liabilities	236.56M	220.82M	265.20M	328.58M	381.47M	391.19M
Stockholders Equity	463.40M	396.41M	415.77M	438.18M	468.91M	446.47M
Cash Flow
Free Cash Flow	31.73M	13.73M	-19.46M	-10.74M	-22.75M	73.14M
Operating Cash Flow	34.14M	16.59M	-15.16M	148.00K	-4.20M	80.04M
Investing Cash Flow	30.25M	13.46M	-87.33M	-7.08M	-5.57M	-28.00M
Financing Cash Flow	-10.81M	-21.16M	-10.78M	-21.34M	-24.54M	-95.05M

C Cheng Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1486, the sentiment is Positive. The current price of 0.59 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.47, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 78.55 is Negative, neither overbought nor oversold. The STOCH value of 93.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1486.

C Cheng Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3878	63 Neutral	HK$95.92M	19.80	1.45%	―	-19.27%	-47.47%
1486	58 Neutral	HK$250.79M	4.49	11.15%	―	4.56%	―
2221	48 Neutral	HK$212.62M	-2.17	-22.45%	―	47.91%	-2845.90%
1751	47 Neutral	HK$278.21M	―	-53.25%	―	-45.46%	-329.88%
1429	44 Neutral	HK$139.20M	-1.32	-27.98%	―	-8.31%	-56.88%
8262	40 Underperform	HK$49.86M	-4.35	-12.85%	―	8.74%	48.76%

C Cheng Holdings Ltd. Corporate Events

C Cheng Holdings Announces Board Changes

C Cheng Holdings Limited, a company incorporated in the Cayman Islands, has announced significant changes in its board of directors. Mr. Wong Hin Wing has resigned from his position as a non-executive director to focus on personal and other business interests, while Mr. Wan Sze Chung has been appointed as an independent non-executive director. Mr. Wan brings extensive experience in accountancy, law, and education, and holds various directorships in other listed companies. This change is expected to bring fresh perspectives to the board, potentially influencing the company’s strategic direction and compliance with listing rules.

C Cheng Holdings Addresses Director’s Non-Compliance in Share Dealings

C Cheng Holdings Limited announced a non-compliance incident involving Mr. Deng Li Ming, an executive director, who purchased shares during a black-out period without prior notification to the company. The incident was reported as an inadvertent oversight, and corrective measures, including enhanced compliance training for Mr. Deng and the implementation of an electronic calendar system, are being taken to prevent future occurrences.