C Cheng Holdings Ltd. (1486) AI Stock Analysis

• Market Cap: HK$289.70M
• Dividend Yield: N/A
• Average Volume (3M): 64.67K
• Price to Earnings (P/E): 5.2
• Beta (1Y): -0.02
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$0.70 ▲(8.91% Upside)

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

Diversified property revenue streams

The company's mix of property sales and recurring rental income gives a dual revenue model. Sales provide project-driven cash infusions while leases produce steady cash flow, and joint-venture opportunities can size projects flexibly, supporting operational resilience over months.

Healthy equity ratio / stable equity base

A healthy equity ratio and stable equity base reduce leverage vulnerability, improving the firm's ability to absorb project delays or market dips. That structural balance-sheet strength supports access to capital and underpins development activity over a multi-month horizon.

Established residential and commercial development expertise

Core expertise in residential and commercial development provides competitive advantage in sourcing, executing and marketing projects. This operational know-how increases likelihood of project completion and value realization, supporting revenue generation over the medium term.

Negative Factors

Negative operating and free cash flows

Consistent negative operating and free cash flows constrain liquidity and force reliance on external financing or asset sales to fund development. Over 2-6 months this reduces flexibility to pursue projects, meet obligations, and sustain operations without restructuring.

Persistent net losses and margin deterioration

Ongoing negative EBIT and net income margins erode retained earnings and limit reinvestment capacity. Persistent losses suggest structural cost or pricing pressure that undermines long-term project economics and heightens the risk of further balance-sheet weakening.

Declining total assets and equity

Reductions in assets and equity shrink the collateral base and impair borrowing capacity, constraining the firm's ability to acquire land or fund construction. This balance-sheet erosion raises refinancing and counterparty risks over the coming months.

C Cheng Holdings Ltd. Business Overview & Revenue Model

Company Description

C Cheng Holdings Limited, an investment holding company, provides architectural and building information modelling (BIM) services in the People's Republic of China, Hong Kong, Macau, and internationally. It operates through Comprehensive Architectural Services and BIM Services segments. The Comprehensive Architectural Services segment engages in the provision of architectural, landscape architectural, town planning, interior design, and heritage conservation services. The BIM Services segment provides BIM consultancy, professional training, and software development services. This segment also offers digital transformation consultancy, cloud-based BIM platform development, and cloud-based project management platform development services, as well as sells IT related products. C Cheng Holdings Limited was founded in 1985 and is headquartered in Tsim Sha Tsui, Hong Kong.

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 operational and cash flow difficulties pose substantial 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: 0.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 0.64 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.61, and above the 200-day MA of 0.36, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 92.31 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$116.54M	29.28	1.45%	―	-19.27%	-47.47%
1486	58 Neutral	HK$289.70M	5.19	11.15%	―	4.56%	―
1751	56 Neutral	HK$519.64M	-31.02	-53.25%	―	-45.46%	-329.88%
1429	50 Neutral	HK$278.40M	-3.39	-27.98%	―	-8.31%	-56.88%
2221	48 Neutral	HK$189.21M	-1.85	-23.21%	―	38.15%	-1533.02%
8262	40 Underperform	HK$43.39M	-3.79	-12.85%	―	8.74%	48.76%

C Cheng Holdings Ltd. Corporate Events

C Cheng Announces Proposed Restructuring and Deemed Acquisition of Element Investment

C Cheng Holdings Limited has announced that shareholders of its investee company Element Investment have reached a preliminary consensus on a restructuring under which Gain Sky, an existing but unpaid shareholder, will introduce new investor funds directly into Element Investment’s PRC subsidiary in lieu of paying approximately RMB22.2 million originally due for its subscribed shares. Following this injection, Gain Sky’s 22,200,000 unpaid shares, representing about 40.36% of Element Investment’s issued capital, are expected to be extinguished or reduced, resulting in Element Investment becoming a non-wholly-owned subsidiary whose financial results will be consolidated into C Cheng’s accounts, while the relevant PRC subsidiary will be reclassified as an associate; the transaction constitutes a discloseable transaction under Hong Kong listing rules and remains subject to definitive agreements and may or may not proceed.

The most recent analyst rating on (HK:1486) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on C Cheng Holdings Ltd. stock, see the HK:1486 Stock Forecast page.