In Construction Holdings Ltd (1500) AI Stock Analysis

• Market Cap: HK$126.16M
• Dividend Yield: N/A
• Average Volume (3M): 179.83K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.05
• Revenue Growth: -17.67%
• EPS Growth: 1010.71%
• Country: HK
• Employees: 49
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 830,000,000
• 10 Day Avg. Volume: 72,500
• 30 Day Avg. Volume: 179,833
• PEG Ratio: -0.07
• Price to Book (P/B): 0.24
• Price to Sales (P/S): 0.21
• P/FCF Ratio: -9.49
• 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: 51 Neutral
• Price Target: HK$0.15 ▲(17.69% Upside)

The score is held back primarily by weak financial performance (declining revenue, negative profitability, and negative operating/free cash flow). Technicals are supportive due to a strong trend above moving averages, but overbought signals add near-term risk. Valuation looks inexpensive on P/E, providing some offset.

Positive Factors

Conservative leverage

A low debt-to-equity profile provides durable financial flexibility for a construction firm with lumpy cash cycles. It reduces refinancing risk, preserves capacity to bid on new projects or absorb delays, and supports long-term resilience through downturns in project flows.

Diversified contract mix

A mix of fixed-price, cost‑plus and time-and-materials contracts spreads revenue and margin risk across project types. Cost‑plus work can protect margins in inflationary periods while fixed-price work locks revenue, enabling more stable cash generation and strategic project selection over months.

Integrated service offering and project portfolio

An integrated suite of design-build, project management and contracting services plus a track record of completed projects creates stickiness with clients and suppliers. That capability supports repeat business, tender competitiveness, and sustainable backlog conversion over several quarters.

Negative Factors

Sharp revenue contraction

A nearly 28% revenue decline materially reduces scale benefits and bargaining power with suppliers. Persistent top-line shrinkage weakens backlog dynamics, increases per-project fixed cost absorption, and undermines the firm's ability to invest in capacity or win tenders over the medium term.

Negative operating and free cash flow

Chronic negative OCF and FCF strain working capital in a sector with large upfront costs and retentions. This forces reliance on external financing or supplier credit, heightens default risk on contracts, and limits the company's ability to fund backlog execution or invest in growth over months.

Weak margins and returns

Very low gross margins and negative operating/net margins compress cash available for reinvestment and signal pricing or cost control problems. Combined with negative ROE, this indicates persistent poor returns on capital that hinder long‑term competitiveness and investor confidence.

In Construction Holdings Ltd Business Overview & Revenue Model

Company Description

In Construction Holdings Limited, an investment holding company, operates as a general and foundation contractor in Hong Kong. The company undertakes foundation and related works, including demolition, site formation, ground investigation field, and general building works. It also engages in the construction and engineering activities. The company serves building and construction industries. In Construction Holdings Limited was founded in 1996 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

The company generates revenue primarily through contract work in construction projects, which includes design, planning, and execution services for various types of buildings. Key revenue streams include fixed-price contracts, cost-plus contracts, and time and materials contracts. Additionally, In Construction Holdings Ltd may earn income from subcontracting specialized services to other firms, as well as through value-added services such as project consultation and engineering support. Partnerships with suppliers and subcontractors further enhance its competitiveness and profitability. Factors contributing to earnings also include effective project management that minimizes costs and maximizes efficiency, as well as a strong portfolio of completed projects that helps in acquiring new contracts.

In Construction Holdings Ltd Financial Statement Overview

Summary

Weak fundamentals overall: sharp revenue contraction (-27.98%) with negative profitability (net profit and EBIT margins) and very low gross margin. Balance sheet leverage is conservative, but negative ROE signals poor returns. Cash flows are negative (operating and free cash flow), raising liquidity risk.

Income Statement

In Construction Holdings Ltd has experienced a significant decline in revenue, with a negative revenue growth rate of -27.98% in the latest period. The company is facing profitability challenges, as indicated by negative net profit and EBIT margins. The gross profit margin is extremely low, suggesting issues with cost management or pricing strategy. Overall, the income statement reflects a struggling financial performance with declining revenue and profitability.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting poor profitability relative to shareholder equity. The equity ratio is stable, suggesting a solid capital structure, but the negative ROE highlights challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals negative operating and free cash flows, indicating liquidity challenges. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is unfavorable, suggesting inefficiencies in converting income into cash. The cash flow statement highlights significant financial stress and potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	273.60M	273.60M	383.10M	332.35M	462.25M	378.78M
Gross Profit	234.00K	234.00K	7.02M	5.24M	91.70M	56.59M
EBITDA	-18.88M	-18.57M	-12.46M	-14.86M	73.97M	30.80M
Net Income	-18.91M	-18.91M	-12.86M	-15.33M	62.19M	28.70M
Balance Sheet
Total Assets	369.07M	369.07M	395.26M	373.37M	416.24M	362.52M
Cash, Cash Equivalents and Short-Term Investments	31.45M	31.45M	78.56M	112.05M	147.75M	55.99M
Total Debt	13.00M	13.00M	13.06M	5.31M	10.33M	15.14M
Total Liabilities	126.41M	126.41M	133.68M	98.94M	101.58M	85.14M
Stockholders Equity	242.67M	242.67M	261.58M	274.44M	314.66M	277.37M
Cash Flow
Free Cash Flow	-6.12M	-6.12M	-34.06M	-10.46M	117.21M	22.48M
Operating Cash Flow	-5.81M	-5.81M	-34.06M	-10.46M	117.52M	22.50M
Investing Cash Flow	2.61M	2.61M	5.74M	5.03M	4.51M	2.74M
Financing Cash Flow	-65.00K	-65.00K	-5.39M	-30.27M	-30.27M	-15.37M

In Construction Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 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:1500, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.15, below the 50-day MA of 0.13, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.47 is Neutral, neither overbought nor oversold. The STOCH value of 31.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1500.

In Construction Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3822	71 Outperform	HK$92.40M	1.68	11.01%	10.17%	52.69%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8321	53 Neutral	HK$273.50M	9.96	-9.52%	―	6.34%	48.38%
1500	51 Neutral	HK$126.16M	4.89	10.02%	―	-17.67%	1010.71%
1718	46 Neutral	HK$77.59M	-0.86	-46.48%	―	-0.64%	13.72%
1802	44 Neutral	HK$37.42M	0.04	―	―	―	―

In Construction Holdings Ltd Corporate Events

In Construction Holdings Ltd Reports Strong Interim Results for 2025

In Construction Holdings Ltd has announced its unaudited interim results for the six months ending September 30, 2025. The company reported a significant increase in revenue to HK$177.25 million from HK$138.09 million in the same period last year, resulting in a gross profit of HK$34.59 million compared to a loss in the previous year. This improvement in financial performance highlights the company’s strengthened market position and operational efficiency, which could positively impact its stakeholders.

The most recent analyst rating on (HK:1500) stock is a Hold with a HK$0.15 price target. To see the full list of analyst forecasts on In Construction Holdings Ltd stock, see the HK:1500 Stock Forecast page.

In Construction Holdings Ltd Announces Positive Profit Turnaround

In Construction Holdings Ltd has announced a positive profit alert, indicating a significant turnaround in its financial performance for the six months ended 30 September 2025. The company expects to report an unaudited consolidated profit of approximately HK$25.0 million to HK$30.0 million, compared to a loss of HK$17.2 million in the same period of 2024. This improvement is attributed to increased revenue and gross profit from ongoing projects. Stakeholders are advised to exercise caution as the results are preliminary and unaudited.

In Construction Holdings Ltd Schedules Board Meeting for Interim Results

In Construction Holdings Ltd has announced that its board of directors will meet on November 28, 2025, to consider and approve the interim results for the six months ending September 30, 2025. The meeting will also discuss the recommendation of an interim dividend, which could have implications for the company’s financial strategy and shareholder returns.