AP Rentals Holdings Ltd. (1496) AI Stock Analysis

• Market Cap: HK$151.20M
• Dividend Yield: 4.34%
• Average Volume (3M): 630.27K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.01
• Revenue Growth: -7.95%
• EPS Growth: 17.50%
• Country: HK
• Employees: 135
• Sector: Industrials
• Sector Strength: 80
• Industry: Rental & Leasing Services
• EPS (TTM): <0.01
• Shares Outstanding: 864,000,000
• 10 Day Avg. Volume: 345,600
• 30 Day Avg. Volume: 630,266
• 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: 70 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

AP Rentals Holdings Ltd. shows a strong financial position with robust cash flow and a stable balance sheet, contributing significantly to the overall score. The technical analysis indicates a positive price trend, though caution is advised due to potential overbought conditions. The valuation is attractive with a reasonable P/E ratio and a high dividend yield, making the stock appealing to income-focused investors.

AP Rentals Holdings Ltd. Business Overview & Revenue Model

Company Description

AP Rentals Holdings Ltd. (1496) is a leading provider of rental services primarily focused on the construction and industrial sectors. The company specializes in the leasing of equipment and machinery, including heavy construction vehicles, tools, and other essential equipment needed for various projects. Through its extensive fleet and commitment to quality service, AP Rentals caters to a diverse clientele, ranging from small contractors to large corporations, ensuring they have the necessary resources to complete their work efficiently and effectively.

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. has demonstrated robust revenue growth and improved operational efficiency, contributing to a stronger EBIT margin. The balance sheet is strong with low leverage, providing financial stability. However, there is a slight decline in net profit and operating cash flow, which highlights areas for improvement in profitability and cash conversion.

Income Statement

AP Rentals Holdings Ltd. has demonstrated a steady recovery with a consistent increase in total revenue over the past few years, showing a revenue growth rate of 8.4% from 2023 to 2024. The gross profit margin has improved from 28.0% in 2023 to 29.9% in 2024, indicating better cost management. However, net income decreased slightly by 18.9%, resulting in a decline in net profit margin from 8.0% to 5.95%. The EBIT margin has strengthened significantly to 7.28% in 2024 from 1.71% in 2023, reflecting improved operational efficiency.

Balance Sheet

The balance sheet of AP Rentals Holdings Ltd. shows a strong equity position with an equity ratio of 67.3% in 2024, indicating financial stability. The debt-to-equity ratio stands at a low 0.19, suggesting low leverage and reduced financial risk. Return on equity has slightly decreased to 4.54% from 5.70% in 2023 due to a lower net income, which may point to a need for improved profitability.

Cash Flow

The company's free cash flow has increased significantly by 83.9% from 2023 to 2024, reflecting improved cash management. However, the operating cash flow decreased by 43.4%, which may indicate challenges in converting revenue into cash. The free cash flow to net income ratio is strong at 1.76, suggesting adequate cash generation relative to profitability.

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: Positive
• Last Price: 0.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 0.18 is above the 20-day moving average (MA) of 0.17, above the 50-day MA of 0.17, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 80.95 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	81 Outperform	HK$85.91M	2.51	12.46%	―	25.43%	53.36%
1496	70 Neutral	HK$151.20M	12.41	5.26%	4.34%	-7.95%	17.50%
Sector *	58 Neutral	HK$14.10B	4.53	-3.70%	5.60%	2.27%	-65.55%
8425	52 Neutral	HK$27.07M	―	-23.63%	―	-1.62%	-4280.00%
0936	40 Underperform	HK$114.48M	23.08	6.88%	―	-5.29%	-2182.35%

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.