IBI Group Holdings Limited (1547) AI Stock Analysis

• Market Cap: HK$163.20M
• Dividend Yield: 2.58%
• Average Volume (3M): 25.07K
• Price to Earnings (P/E): 9.0
• Beta (1Y): -0.15
• Revenue Growth: 27.88%
• EPS Growth: 1.69%
• Country: HK
• Employees: 99
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 32,000
• 30 Day Avg. Volume: 25,066
• PEG Ratio: <0.01
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 25.09
• 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: 47 Neutral
• Price Target: HK$0.20 ▲(0.50% Upside)
• Action: Reiterated Date: 01/08/26
• Date: Action: Reiterated 01/08/26

The score is primarily held back by weakening fundamentals—particularly the steep revenue decline and very weak cash generation—reinforced by a negative technical trend (below major moving averages with a negative MACD). A moderate valuation and ~2.75% dividend yield provide some offset, but not enough to outweigh the financial and momentum risks.

Positive Factors

Moderate leverage / stable capital structure

A moderate debt-to-equity ratio (0.49) and a stable equity ratio provide lasting financial flexibility. This capital structure reduces refinancing and solvency risk, allowing the company to fund operations, capex or restructuring without immediate pressure on cash flows during cyclical downturns.

Improving gross profitability

A rise in gross margin to 13.37% suggests the firm has some pricing power or improved cost management at the gross level. Sustained higher gross margins can support long-term margin recovery even if revenue growth is weak, helping rebuild operating profits as volumes stabilize.

Historical FCF conversion characteristic

A free cash flow to net income ratio near 1 indicates the business has the structural ability to convert reported earnings into cash. If operating performance normalizes, this conversion potential supports durable cash returns to stakeholders and capacity to reduce leverage or reinvest.

Negative Factors

Steep revenue decline

A 23.6% revenue contraction materially undermines scale and market presence. Persistent top-line decline erodes fixed-cost absorption, weakens negotiating leverage with suppliers/customers, and makes sustained margin recovery harder, threatening the firm's medium-term competitive position.

Very weak operating cash generation

A near-77% drop in FCF growth and an OCF-to-net-income ratio of 0.03 signal structural cash conversion problems. Earnings are not translating into usable cash, limiting reinvestment, dividend sustainability and debt servicing capacity unless operational cash flows are restored.

Low profitability and weakened shareholder returns

A thin net margin (2.53%) and reduced ROE (4.98%) indicate poor profitability and limited returns on capital. Persistently low margins constrain internal investment and shareholder distributions, making it harder to finance growth initiatives or attract long-term equity capital.

IBI Group Holdings Limited Business Overview & Revenue Model

Company Description

IBI Group Holdings Limited, a building contractor, provides renovation services for property projects in the private sector in Hong Kong and Macau. The company offers interior fitting out and building refurbishments, and alteration and addition projects, as well as a range of other building professional services. It also engages in the provision of products and services with a focus on air quality, energy efficiency, and modern sustainable building materials; and strategic investments. The company serves organizations and commercial enterprises, including multi-national banks, hotels and casino operators, racing and betting operators, and property developers. IBI Group Holdings Limited was founded in 1997 and is headquartered in Hong Kong, Hong Kong.

How the Company Makes Money

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IBI Group Holdings Limited Financial Statement Overview

Summary

Income statement is pressured by a sharp revenue decline (-23.63%) and low net margin (2.53%). Balance sheet is relatively stable with moderate leverage (debt-to-equity 0.49) but weaker shareholder returns (ROE 4.98%). Cash flow is a key weakness with free cash flow growth down -76.98% and very low operating cash flow to net income (0.03).

Income Statement

IBI Group Holdings Limited has experienced a significant decline in revenue growth, with a -23.63% decrease in the most recent period. The gross profit margin has improved slightly to 13.37%, but the net profit margin remains low at 2.53%. EBIT and EBITDA margins are modest, indicating challenges in operational efficiency. Overall, the income statement reflects declining revenue and profitability pressures.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.49, suggesting a balanced approach to leverage. However, the return on equity has decreased to 4.98%, indicating reduced profitability for shareholders. The equity ratio is stable, reflecting a solid capital structure. The balance sheet shows a stable financial position but highlights concerns about declining returns.

Cash Flow

Free cash flow growth has sharply declined by -76.98%, and the operating cash flow to net income ratio is low at 0.03, indicating weak cash generation relative to earnings. The free cash flow to net income ratio is nearly 1, suggesting that most net income is converted into free cash flow. Overall, the cash flow statement highlights significant challenges in cash generation and sustainability.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	554.68M	331.41M	527.25M	308.52M	405.88M	556.70M
Gross Profit	48.33M	44.30M	46.81M	36.30M	67.95M	79.43M
EBITDA	19.18M	17.20M	9.97M	8.67M	37.07M	58.88M
Net Income	9.58M	8.39M	350.00K	2.80M	27.01M	54.39M
Balance Sheet
Total Assets	454.45M	372.76M	420.93M	322.69M	317.70M	396.22M
Cash, Cash Equivalents and Short-Term Investments	45.42M	18.36M	21.11M	58.87M	141.65M	87.14M
Total Debt	92.75M	82.02M	82.34M	82.61M	4.55M	4.19M
Total Liabilities	280.49M	205.42M	258.09M	159.93M	150.03M	215.00M
Stockholders Equity	175.27M	168.47M	164.10M	163.97M	168.53M	181.52M
Cash Flow
Free Cash Flow	-23.26M	6.38M	-19.66M	-40.50M	53.53M	-100.20M
Operating Cash Flow	-23.16M	6.41M	-19.59M	-40.38M	54.71M	-99.86M
Investing Cash Flow	-6.56M	-808.00K	-8.85M	-109.99M	42.55M	1.84M
Financing Cash Flow	8.57M	-8.35M	-9.79M	67.76M	-42.76M	-10.51M

IBI Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 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:1547, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and below the 200-day MA of 0.22, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.16 is Neutral, neither overbought nor oversold. The STOCH value of 5.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1547.

IBI Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1582	65 Neutral	HK$180.00M	2.21	6.22%	9.71%	27.42%	-32.34%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$240.00M	6.75	6.66%	15.38%	13.59%	-12.52%
2863	50 Neutral	HK$244.78M	-14.68	-1.47%	8.33%	0.94%	82.30%
6182	49 Neutral	HK$592.00M	50.45	0.48%	―	144.67%	―
1865	48 Neutral	HK$531.79M	-1.14	-16.00%	―	9.19%	84.15%
1547	47 Neutral	HK$163.20M	9.03	5.57%	2.58%	27.88%	1.69%