AP Rentals Holdings Ltd. (1496) AI Stock Analysis

• Market Cap: HK$137.38M
• Dividend Yield: 5.34%
• Average Volume (3M): 460.80K
• Price to Earnings (P/E): 11.3
• Beta (1Y): <0.01
• Revenue Growth: -7.95%
• EPS Growth: 17.50%
• Country: HK
• Employees: 135
• Sector: Industrials
• Sector Strength: 73
• Industry: Rental & Leasing Services
• EPS (TTM): <0.01
• Shares Outstanding: 864,000,000
• 10 Day Avg. Volume: 224,400
• 30 Day Avg. Volume: 460,800
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 67 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

AP Rentals Holdings Ltd. has a solid financial foundation with strong cash flow generation and a stable balance sheet, contributing positively to the overall score. The valuation metrics are attractive, with a low P/E ratio and high dividend yield, enhancing the investment appeal. However, technical analysis suggests a neutral to slightly bearish outlook, which tempers the overall score.

Positive Factors

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, enabling the company to invest in new opportunities and weather economic downturns.

Balance Sheet Health

A strong balance sheet with low leverage reduces financial risk and supports long-term stability, allowing for strategic investments.

Profitability Improvement

Improved profitability indicates effective cost management and operational efficiency, which can drive sustainable earnings growth.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in market demand or competitive pressures, potentially impacting long-term growth prospects.

Operational Efficiency Challenges

Low EBIT margins indicate operational inefficiencies, which could hinder profitability and competitiveness in the long run.

Negative Revenue Growth Trend

Sustained negative revenue growth reflects ongoing difficulties in expanding market share or product offerings, affecting future performance.

AP Rentals Holdings Ltd. Business Overview & Revenue Model

Company Description

AP Rentals Holdings Limited, an investment holding company, engages in the rental of construction, electrical and mechanical (E&M) engineering, and event and entertainment equipment in Hong Kong, Macau, Singapore, and the People's Republic of China. It operates in Leasing and Trading segments. The company offers equipment planning consultation; outdoor service; service station; transportation, installation, operation, refueling and maintenance, disassembly, and other technical support services, as well as various value-added services. Its rental equipment primarily consists of power and energy equipment, high-reach equipment, and material handling equipment, as well as lifting, earthmoving, foundation, road and transportation, tunneling, demolition, and dewatering equipment. The company also sells and trades in machinery and parts; and offers repair and maintenance, installation, and delivery services. It serves clients in the construction, E&M engineering, and event and entertainment sectors. AP Rentals Holdings Limited was founded in 2004 and is headquartered in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

AP Rentals Holdings Ltd. generates revenue primarily through the rental of its equipment and machinery. This includes daily, weekly, and monthly rental agreements that provide customers with flexible options based on their project needs. The company also earns income from ancillary services such as maintenance, repair, and transportation of equipment, which are often bundled with rental contracts. Additionally, AP Rentals may engage in partnerships with construction firms and contractors to secure long-term rental agreements, thereby providing a steady income stream. Seasonal demand fluctuations and the company's ability to maintain a modern and diverse fleet are critical factors influencing its earnings.

AP Rentals Holdings Ltd. Financial Statement Overview

Summary

AP Rentals Holdings Ltd. demonstrates a solid financial foundation with strengths in cash flow generation and a stable balance sheet. While profitability metrics have improved, the company faces challenges in revenue growth and operational efficiency. The low leverage and strong cash flow growth provide a cushion for future investments and potential growth opportunities.

Income Statement

AP Rentals Holdings Ltd. has shown a mixed performance in its income statement. The gross profit margin has improved over the years, reaching 28.99% in 2025, indicating efficient cost management. However, the revenue growth rate has been negative at -8.92% in 2025, reflecting a decline in sales. The net profit margin improved to 7.59% in 2025, showing better profitability. Despite these improvements, the EBIT margin remains low at 10.14%, suggesting operational challenges.

Balance Sheet

The balance sheet of AP Rentals Holdings Ltd. reflects a stable financial position with a low debt-to-equity ratio of 0.21, indicating conservative leverage. The return on equity is modest at 5.19%, showing moderate profitability from shareholders' investments. The equity ratio is healthy, suggesting a strong capital structure. Overall, the balance sheet indicates financial stability with room for improved returns.

Cash Flow

The cash flow statement shows a strong free cash flow growth rate of 98.79% in 2025, highlighting significant improvements in cash generation. The operating cash flow to net income ratio of 0.66 indicates efficient cash conversion from earnings. However, the free cash flow to net income ratio is relatively low at 0.16, suggesting limited free cash flow relative to net income. Overall, the cash flow position is robust with positive growth trends.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	175.92M	160.22M	174.07M	160.55M	134.80M	148.45M
Gross Profit	54.72M	46.45M	52.04M	45.02M	20.59M	18.49M
EBITDA	58.65M	63.75M	61.41M	58.33M	54.61M	64.61M
Net Income	10.94M	12.16M	10.36M	12.78M	-4.46M	-5.68M
Balance Sheet
Total Assets	344.75M	339.13M	339.43M	327.89M	318.67M	310.69M
Cash, Cash Equivalents and Short-Term Investments	91.10M	108.33M	93.66M	74.92M	56.08M	38.75M
Total Debt	51.20M	49.81M	42.67M	42.34M	33.96M	18.06M
Total Liabilities	116.69M	105.07M	111.12M	103.73M	106.41M	94.56M
Stockholders Equity	228.07M	234.06M	228.31M	224.16M	212.26M	216.13M
Cash Flow
Free Cash Flow	4.21M	8.37M	18.28M	9.94M	-16.36M	24.98M
Operating Cash Flow	33.41M	52.67M	37.20M	65.71M	57.04M	49.77M
Investing Cash Flow	-28.05M	-28.02M	-10.49M	-40.19M	-45.84M	-14.70M
Financing Cash Flow	6.42M	-9.52M	-7.06M	-6.27M	6.51M	-26.44M

AP Rentals Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.16
• 50DMA: Negative
• 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:1496, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.16, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.67 is Neutral, neither overbought nor oversold. The STOCH value of 46.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1496.

AP Rentals Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1581	71 Outperform	HK$75.53M	2.21	12.46%	―	25.43%	53.36%
1496	67 Neutral	HK$137.38M	11.35	5.26%	5.34%	-7.95%	17.50%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
8425	52 Neutral	HK$23.69M	―	-23.63%	―	-1.62%	-4280.00%
0936	40 Underperform	HK$134.62M	23.08	6.55%	―	3.51%	-2136.54%

AP Rentals Holdings Ltd. Corporate Events

AP Rentals Holdings Limited Announces Discloseable Equipment Purchase

AP Rentals Holdings Limited has announced a discloseable transaction involving the purchase of equipment, which is subject to reporting and announcement requirements under the Listing Rules. The company has entered into a purchase order for three units of equipment valued at EUR 399,567.10, following a previous acquisition within the past 12 months. The aggregated transactions exceed 5% of applicable percentage ratios, thus requiring disclosure.