In Construction Holdings Ltd (1500) AI Stock Analysis

• Market Cap: HK$47.31M
• Dividend Yield: N/A
• Average Volume (3M): 218.17K
• Price to Earnings (P/E): 20.4
• Beta (1Y): -0.02
• Revenue Growth: 23.52%
• EPS Growth: N/A
• Country: HK
• Employees: 49
• Sector: Industrials
• Sector Strength: 87
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 830,000,000
• 10 Day Avg. Volume: 487,000
• 30 Day Avg. Volume: 218,166
• PEG Ratio: 0.23
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.33
• 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

• Rating: 48 Neutral
• Price Target: ―

In Construction Holdings Ltd is currently under pressure with significant financial challenges, specifically in profitability and operational cash flow. While the company benefits from a stable balance sheet and low leverage, the overall financial performance is concerning. Technical analysis indicates a bearish trend, and the stock's valuation is not compelling without a dividend. Investors should be cautious and monitor the company's efforts to improve operational efficiency and revenue growth.

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

In Construction Holdings Ltd generates revenue through multiple streams within the construction industry. The company's primary source of income is from contracts for construction projects, which encompass both building and civil engineering works. These projects can range from residential and commercial buildings to infrastructure and public works. The company also earns money through project management and consultancy services, where they provide expertise and guidance throughout the construction process. Key partnerships with government entities and private sector clients often play a significant role in securing large-scale projects, contributing to a substantial portion of the company's earnings.

In Construction Holdings Ltd Financial Statement Overview

Summary

In Construction Holdings Ltd is facing significant financial challenges, particularly in profitability and cash generation. The income statement shows declining revenue and negative earnings, while the cash flow has turned negative, indicating operational inefficiencies. However, the balance sheet remains relatively stable with a low debt-to-equity ratio and strong liquidity position.

Income Statement

In Construction Holdings Ltd has shown a declining performance in recent years. The company experienced negative EBIT and net income in the last two years, which is concerning. Gross profit margin has decreased significantly from its earlier levels, indicating cost management challenges. Revenue growth is negative, reflecting a decrease in total revenue over the past few years.

Balance Sheet

The company's balance sheet remains relatively stable with a strong equity position. The debt-to-equity ratio is low, indicating low financial leverage, which could be a strategic advantage. However, the equity ratio has decreased slightly, and there are potential risks if liabilities continue to rise. The company's cash position has been substantial, maintaining a negative net debt, which is a positive indicator of liquidity.

Cash Flow

Cash flow from operations has turned negative, which raises concerns about the company's ability to generate cash from its core operations. Free cash flow has also been negative, showing a declining trend over the years, which could impact future investments and financial flexibility. The operating cash flow to net income ratio has worsened, indicating operational inefficiencies.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	379.89M	383.10M	332.35M	462.25M	378.78M	393.89M
Gross Profit	19.13M	7.02M	5.24M	91.70M	56.59M	26.19M
EBITDA	1.93M	-12.46M	-14.86M	72.50M	28.71M	5.74M
Net Income	2.29M	-12.86M	-15.33M	62.19M	28.70M	3.76M
Balance Sheet
Total Assets	344.17M	395.26M	373.37M	416.24M	362.52M	389.88M
Cash, Cash Equivalents and Short-Term Investments	52.31M	78.56M	112.05M	147.75M	55.99M	46.13M
Total Debt	20.67M	13.06M	5.31M	10.33M	15.14M	29.76M
Total Liabilities	82.41M	133.68M	98.94M	101.58M	85.14M	141.21M
Stockholders Equity	244.91M	261.58M	274.44M	314.66M	277.37M	248.67M
Cash Flow
Free Cash Flow	-18.71M	-34.06M	-10.46M	117.21M	22.48M	-22.43M
Operating Cash Flow	-18.71M	-34.06M	-10.46M	117.52M	22.50M	-22.40M
Investing Cash Flow	4.75M	5.74M	5.03M	4.51M	2.74M	5.22M
Financing Cash Flow	-2.76M	-5.39M	-30.27M	-30.27M	-15.37M	17.69M

In Construction Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1500, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.07, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.67 is Neutral, neither overbought nor oversold. The STOCH value of 19.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	58 Neutral	$1.33B	4.26	-2.93%	7.57%	3.58%	-52.48%
1500	48 Neutral	HK$47.31M	20.36	-7.50%	―	23.52%	―
1718	48 Neutral	HK$54.67M	―	-72.83%	―	6.83%	-63.75%
1722		HK$53.90M	―	-10.43%	―	―	―
1802	48 Neutral	HK$49.90M	―		―	―	―
3822	47 Neutral	HK$52.08M	4.76	2.30%	―	23.75%	-100.39%
8321	45 Neutral	HK$59.14M	―	-13.49%	―	-57.91%	64.82%

In Construction Holdings Ltd Corporate Events

In Construction Holdings Ltd Forms Sustainability Committee to Boost ESG Efforts

In Construction Holdings Ltd has established a Sustainability Committee to enhance its environmental, social, and governance (ESG) and climate change management systems. This initiative aims to promote sustainable development within the company, with the committee responsible for overseeing ESG initiatives, monitoring risks and opportunities, and ensuring compliance with relevant laws and standards. The committee consists of four members, with Ms. Kwan Kit Sum Kit appointed as the chairperson.

In Construction Holdings Ltd Forms Sustainability Committee to Enhance ESG Initiatives

In Construction Holdings Ltd has established a Sustainability Committee to oversee its ESG (Environmental, Social, and Governance) and climate change initiatives. The committee is tasked with developing and recommending ESG strategies, monitoring their implementation, and ensuring alignment with the company’s long-term goals. This move highlights the company’s commitment to sustainability and aims to enhance its industry positioning by addressing climate-related risks and opportunities.

In Construction Holdings Ltd Announces New Board Composition

In Construction Holdings Ltd has announced the composition of its board of directors and their roles, effective from March 18, 2025. The announcement outlines the members of the board, including executive and independent non-executive directors, and details the structure of four board committees, highlighting the leadership roles within these committees.