C Cheng Holdings Ltd. (1486) AI Stock Analysis

• Market Cap: HK$88.64M
• Dividend Yield: N/A
• Average Volume (3M): 132.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.01
• Revenue Growth: -11.66%
• EPS Growth: 53.14%
• Country: HK
• Employees: 615
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 432,391,170
• 10 Day Avg. Volume: 197,300
• 30 Day Avg. Volume: 132,566
• PEG Ratio: -0.07
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.22
• 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: 44 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

C Cheng Holdings Ltd. faces substantial financial and operational challenges, with declining revenues and negative profitability being significant concerns. The technical analysis indicates a bearish trend, while the valuation metrics are unfavorably impacted by negative earnings and lack of dividends. The overall score reflects these major issues.

C Cheng Holdings Ltd. Business Overview & Revenue Model

Company Description

C Cheng Holdings Ltd. (1486) is a company primarily engaged in the provision of architecture and engineering consulting services. The company operates mainly in Hong Kong and Mainland China, offering a range of services including architectural design, landscape architecture, interior design, and various engineering services. C Cheng Holdings is known for its comprehensive approach to building and infrastructure projects, serving a diverse client base across different sectors such as residential, commercial, and public works.

How the Company Makes Money

C Cheng Holdings Ltd. generates revenue primarily through its architecture and engineering consulting services. The company earns fees from designing and managing construction projects, which include residential buildings, commercial spaces, and infrastructure developments. Key revenue streams include project design fees, project management fees, and consulting fees related to engineering services. Partnerships with construction firms, property developers, and government bodies play a significant role in securing projects and driving revenue growth. The company's reputation and portfolio of successful projects also contribute to its ability to attract new clients and retain existing ones.

C Cheng Holdings Ltd. Financial Statement Overview

Summary

C Cheng Holdings Ltd. demonstrates significant financial challenges, characterized by declining revenues, negative profitability, and cash flow issues. While the balance sheet shows a moderate debt level, the company faces substantial risks due to operational and cash flow difficulties.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	401.30M	454.25M	682.67M	861.99M	717.17M
Gross Profit	62.24M	58.54M	108.43M	162.73M	133.35M
EBITDA	-6.52M	2.44M	18.59M	77.90M	85.41M
Net Income	-14.85M	-21.24M	-11.14M	4.50M	14.24M
Balance Sheet
Total Assets	619.88M	683.20M	834.20M	903.52M	884.27M
Cash, Cash Equivalents and Short-Term Investments	82.58M	97.11M	172.84M	215.33M	257.36M
Total Debt	97.53M	118.84M	147.27M	183.75M	180.01M
Total Liabilities	220.82M	265.20M	328.58M	381.47M	391.19M
Stockholders Equity	396.41M	415.77M	438.18M	468.91M	446.47M
Cash Flow
Free Cash Flow	13.73M	-19.46M	-10.74M	-22.75M	73.14M
Operating Cash Flow	16.59M	-15.16M	148.00K	-4.20M	80.04M
Investing Cash Flow	13.46M	-87.33M	-7.08M	-5.57M	-28.00M
Financing Cash Flow	-21.16M	-10.78M	-21.34M	-24.54M	-95.05M

C Cheng Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.21
• 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:1486, the sentiment is Neutral. The current price of 0.21 is above the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.22, and below the 200-day MA of 0.27, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 79.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 *	62 Neutral	C$6.70B	7.73	3.45%	2.77%	6.50%	-23.02%
3878	57 Neutral	HK$68.58M	14.55	1.80%	―	-46.10%	-38.04%
1751	48 Neutral	HK$87.09M	175.00	2.09%	―	-19.85%	-71.83%
8262	45 Neutral	HK$84.02M	―	-11.75%	―	33.77%	56.47%
1486	44 Neutral	HK$88.64M	―	-3.66%	―	-11.66%	53.14%
1429	44 Neutral	HK$68.80M	―	-34.49%	―	-4.16%	-643.18%
2221	43 Neutral	HK$101.19M	―	-22.45%	―	21.44%	65.22%

C Cheng Holdings Ltd. Corporate Events

C Cheng Holdings Ltd. Announces Auditor Change to Enhance Cost Efficiency

C Cheng Holdings Ltd. has announced a change in its auditor, transitioning from Ernst & Young to ZHONGHUI ANDA CPA Limited. This decision was made to optimize audit fees and reduce overall operating expenses. The change is not expected to impact the annual audit for the year ending December 2025. The company expressed gratitude to Ernst & Young for their past services and believes the new appointment will enhance cost-effectiveness while maintaining audit quality, benefiting the company and its shareholders.

C Cheng Holdings Limited Forms Nomination Committee to Strengthen Governance

C Cheng Holdings Limited has established a Nomination Committee to enhance its corporate governance structure. This committee, primarily composed of independent non-executive directors, is tasked with developing and reviewing the nomination policy, assessing board composition, and ensuring diversity and independence among board members. The formation of this committee signifies a strategic move to align the board’s composition with the company’s corporate strategy, potentially impacting the company’s governance and operational effectiveness.

C Cheng Holdings Completes Rights Issue, Raises HK$13.8 Million

C Cheng Holdings Limited announced the successful completion of its Rights Issue, raising approximately HK$13.8 million in net proceeds. The funds will be allocated to further develop the company’s business in the MENA region, enhance its IT infrastructure with AI technology, and support general working capital. This strategic financial move aims to strengthen C Cheng Holdings’ market position and operational efficiency.

C Cheng Holdings Announces Rights Issue Results and Share Placement Plan

C Cheng Holdings Limited announced the results of its Rights Issue, revealing that 84.62% of the offered Rights Shares were successfully subscribed, leaving 15.38% unsubscribed. The company has arranged for these unsubscribed shares to be placed with independent placees, with any premium gained to be distributed to shareholders who did not take action, potentially impacting shareholder returns and the company’s capital structure.

C Cheng Holdings Ltd. AGM Resolutions Unanimously Approved

C Cheng Holdings Ltd. announced the successful passing of all resolutions at its Annual General Meeting held on May 21, 2025. Key resolutions included the approval of the 2024 financial statements, re-election of directors, reappointment of auditors, and granting of mandates for share issuance and repurchase. The unanimous approval of these resolutions, with 100% of votes in favor, reflects strong shareholder support and positions the company for continued strategic growth and operational stability.

C Cheng Holdings Delays Circular Dispatch for Major Transaction

C Cheng Holdings Limited, incorporated in the Cayman Islands, announced a delay in the dispatch of a circular related to a major transaction concerning the exercise of the Right of Use. The company had initially planned to send out the circular by April 30, 2025, but has requested an extension to May 30, 2025, due to the need for additional time to finalize certain information, such as the statement of indebtedness and working capital sufficiency. The Stock Exchange granted this waiver, allowing the company more time to prepare the necessary documentation.

C Cheng Holdings Announces Share Options Cancellation and Rights Issue

C Cheng Holdings Ltd. has announced the cancellation of 22,100,000 outstanding share options and proposed a rights issue to raise approximately HK$14.4 million. The proceeds will be used to develop the company’s business in the MENA region, enhance IT infrastructure with AI technology, and for general working capital. This strategic move is aimed at bolstering the company’s operations and market positioning, potentially benefiting stakeholders by improving project delivery and business development.

C Cheng Holdings Announces AGM and Register Closure

C Cheng Holdings Limited has announced the closure of its register of members from May 14 to May 20, 2025, in preparation for its annual general meeting (AGM). During this period, no share transfers will be registered. The AGM is scheduled for May 21, 2025, where shareholders will consider the approval of financial statements, re-election of directors, and re-appointment of auditors. Additionally, resolutions regarding the issuance of shares and related powers for directors will be discussed.