AP Rentals Holdings Ltd. (1496) AI Stock Analysis

• Market Cap: HK$145.15M
• Dividend Yield: 6.2%
• Average Volume (3M): 105.73K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 0.20
• Revenue Growth: -13.83%
• EPS Growth: 14.96%
• Country: HK
• Employees: 135
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): <0.01
• Shares Outstanding: 864,000,000
• 10 Day Avg. Volume: 162,400
• 30 Day Avg. Volume: 105,733
• PEG Ratio: 0.50
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 12.70
• 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$0.18 ▲(11.25% Upside)

AP Rentals Holdings Ltd. has a solid financial foundation with strong cash flow and a stable balance sheet, contributing positively to the score. However, the technical analysis indicates bearish momentum, which is a significant risk factor. The valuation is attractive with a reasonable P/E ratio and high dividend yield, providing some support to the overall score.

Positive Factors

Conservative leverage / strong balance sheet

A low debt-to-equity ratio of 0.21 shows conservative leverage and a resilient capital structure, giving the company durable financial flexibility to fund fleet maintenance, expansions, or weather cyclical construction slowdowns without stressing liquidity or relying on costly debt.

Rapid free cash flow growth

Nearly 99% free cash flow growth and an OCF-to-net-income ratio of 0.66 indicate improving cash conversion and operational cash generation. Sustained FCF growth supports reinvestment in fleet, maintenance, dividends, or deleveraging, underpinning long-term financial resilience.

Improving profitability margins

Rising gross margin (28.99%) and improved net margin (7.59%) reflect better cost control and pricing power in rentals. If sustained, these margin gains enhance free cash generation and make the business more resilient to cyclical demand swings in construction and industrial markets.

Negative Factors

Declining revenue trend

Material negative revenue growth (~-13.8%) signals shrinking top-line scale, which can compress utilization rates and underwriting leverage in a rental fleet business. Persistent revenue declines undermine long-term ROI on equipment and limit scope for margin expansion and fixed-cost absorption.

Low free cash flow relative to net income

A FCF-to-net-income ratio of 0.16 indicates much of reported earnings do not convert into discretionary cash. This constrains capacity to fund capex, pay dividends, or repay debt sustainably, leaving the company exposed if cash generation weakens or capex needs rise.

Weak operating efficiency (EBIT margin)

A modest EBIT margin (~10.1%) points to limited operational leverage and cost structure pressures in the rentals business. Sustained low operating margins reduce excess cash flow and leave less room to absorb price competition, higher maintenance costs, or fleet renewal needs over the medium term.

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 through its core business of equipment and machinery rentals, charging clients fees based on the duration of the rental period and the type of equipment utilized. Key revenue streams include hourly, daily, and long-term rental agreements, catering to both short-term projects and long-term contracts. Additionally, the company may generate income through ancillary services such as maintenance, transportation, and insurance for the rented equipment. Strategic partnerships with manufacturers and suppliers of construction and industrial equipment further bolster its offerings, allowing AP Rentals to provide a comprehensive range of products while optimizing procurement costs. The company's focus on maintaining a modern and well-maintained fleet of rental equipment ensures high customer satisfaction and repeat business, contributing significantly to 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	160.22M	160.22M	174.07M	160.55M	134.80M	148.45M
Gross Profit	46.45M	46.45M	52.04M	45.02M	20.59M	18.49M
EBITDA	57.76M	63.75M	61.41M	58.33M	54.61M	64.61M
Net Income	12.16M	12.16M	10.36M	12.78M	-4.46M	-5.68M
Balance Sheet
Total Assets	339.13M	339.13M	339.43M	327.89M	318.67M	310.69M
Cash, Cash Equivalents and Short-Term Investments	108.33M	108.33M	93.66M	74.92M	56.08M	38.75M
Total Debt	49.81M	49.81M	42.67M	42.34M	33.96M	18.06M
Total Liabilities	105.07M	105.07M	111.12M	103.73M	106.41M	94.56M
Stockholders Equity	234.06M	234.06M	228.31M	224.16M	212.26M	216.13M
Cash Flow
Free Cash Flow	8.37M	8.37M	18.28M	9.94M	-16.36M	24.98M
Operating Cash Flow	52.67M	52.67M	37.20M	65.71M	57.04M	49.77M
Investing Cash Flow	-29.76M	-28.02M	-10.49M	-40.19M	-45.84M	-14.70M
Financing Cash Flow	-8.62M	-9.52M	-7.06M	-6.27M	6.51M	-26.44M

AP Rentals Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 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:1496, the sentiment is Positive. The current price of 0.16 is below the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.16, and above the 200-day MA of 0.15, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 64.63 is Neutral, neither overbought nor oversold. The STOCH value of 93.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	76 Outperform	HK$89.64M	3.59	8.86%	―	-12.78%	-20.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1496	62 Neutral	HK$145.15M	11.51	5.46%	6.20%	-13.83%	14.96%
8425	50 Neutral	HK$33.84M	-2.41	-13.79%	―	23.95%	-12.01%
0936	45 Neutral	HK$386.90M	-3.45	6.55%	―	3.51%	-2136.54%

AP Rentals Holdings Ltd. Corporate Events

AP Rentals Holdings Limited Reports Increased Profit Despite Revenue Decline

AP Rentals Holdings Limited reported its interim results for the six months ending 30 September 2025, showing a decrease in revenue from HK$80,713,000 in 2024 to HK$72,090,000 in 2025. Despite the revenue drop, the company experienced an increase in profit for the period, rising from HK$4,644,000 in 2024 to HK$5,058,000 in 2025, and an improved profit margin of 7.0%. This financial performance reflects the company’s ability to manage costs effectively and maintain profitability, which may positively impact its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:1496) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on AP Rentals Holdings Ltd. stock, see the HK:1496 Stock Forecast page.

AP Rentals Holdings Ltd. Declares Interim Dividend for 2025

AP Rentals Holdings Ltd. announced an interim cash dividend of HKD 0.0023 per share for the six months ended 30 September 2025, with the payment date set for 24 December 2025. This announcement reflects the company’s ongoing commitment to returning value to shareholders, potentially enhancing its attractiveness to investors and maintaining its competitive position in the equipment rental industry.

The most recent analyst rating on (HK:1496) stock is a Hold with a HK$0.17 price target. To see the full list of analyst forecasts on AP Rentals Holdings Ltd. stock, see the HK:1496 Stock Forecast page.