Chinney Kin Wing Holdings Limited (1556) AI Stock Analysis

• Market Cap: HK$532.50M
• Dividend Yield: 5.71%
• Average Volume (3M): 308.94K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.18
• Revenue Growth: 17.51%
• EPS Growth: 1.48%
• Country: HK
• Employees: 738
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 1,500,000,000
• 10 Day Avg. Volume: 114,000
• 30 Day Avg. Volume: 308,941
• PEG Ratio: 0.59
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 1.50
• 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: 78 Outperform
• Price Target: HK$0.40 ▲(14.00% Upside)

The score is driven primarily by strong financial quality (especially very low leverage and growing equity) and an attractive valuation (low P/E and high dividend yield). Technical indicators are mildly supportive but not strong enough to materially lift the score, while margin compression and cash-flow lumpiness temper the financial performance assessment.

Positive Factors

Strong Balance Sheet

A strong balance sheet with negligible leverage reduces financial risk and enhances resilience, supporting long-term stability and growth.

Revenue Growth

Consistent revenue growth reflects successful market expansion and product adoption, which are crucial for sustaining long-term business success.

Equity Growth

Steady equity growth signifies a strengthening financial position, providing a buffer against economic downturns and enabling future investments.

Negative Factors

Margin Compression

Margin compression indicates cost pressures and mix headwinds, which could limit profitability and reduce financial flexibility in a competitive market.

Cash Flow Volatility

Volatile cash flows highlight potential challenges in managing working capital and project timing, affecting liquidity and operational stability.

Cash Conversion Pressure

Cash conversion pressure can strain liquidity, limiting the company's ability to reinvest in growth opportunities and meet financial obligations.

Chinney Kin Wing Holdings Limited Business Overview & Revenue Model

Company Description

Chinney Kin Wing Holdings Limited, an investment holding company, engages in foundation construction and drilling, and site investigation works for public and private sectors in Hong Kong and internationally. It operates in two segments, Foundation Construction and Ancillary Services; and Drilling and Site Investigation. The company offers piling construction services, such as bored piling, percussive H-piling, socketed H-piling, mini-piling, and sheet piling; other ancillary services comprising ELS works, site formation, and pile cap construction; drilling and site investigation, and related ground engineering construction services; and equipment and machinery leasing and construction material testing services, as well as pile testing services. It also engages in basement construction; demolition and civil works; road and drainage works; and pipe and soldier piling. The company was founded in 1994 and is headquartered in Central, Hong Kong. Chinney Kin Wing Holdings Limited is a subsidiary of Chinney Alliance Group Limited.

How the Company Makes Money

Chinney Kin Wing Holdings Limited generates revenue mainly through its foundation construction and ancillary services, which include the design and construction of foundation systems for buildings and infrastructure projects. The company earns income from contracts awarded for these services in both public and private sector projects, such as residential developments, commercial buildings, and public infrastructure. Additionally, the company provides drilling and site investigation services, which contribute to its revenue streams by offering specialized engineering solutions essential for construction projects. Partnerships with construction firms and government entities are significant factors that facilitate the acquisition of contracts, thereby impacting the company's earnings.

Chinney Kin Wing Holdings Limited Financial Statement Overview

Summary

Chinney Kin Wing Holdings Limited exhibits strong financial health with consistent revenue growth and profitability, supported by a robust balance sheet with zero debt. However, attention is needed on cash flow management and investment strategies, as indicated by the recent drop in operating cash flow and negligible free cash flow.

Income Statement

Chinney Kin Wing Holdings Limited has demonstrated consistent revenue growth over the years with the latest year seeing a 17.11% increase. The gross profit margin stands at a healthy 14.71%, indicating efficient cost management. The net profit margin of 5.11% and EBITDA margin of 7.70% suggest robust profitability and operational efficiency. Stability in EBIT margin at 5.03% further supports strong operational performance.

Balance Sheet

The company maintains a strong balance sheet with a debt-to-equity ratio of 0, indicating no reliance on debt financing. The equity ratio is high at 40.08%, reflecting a solid equity base. Return on Equity (ROE) is commendable at 15.83%, highlighting effective utilization of shareholder funds to generate earnings.

Cash Flow

Operating cash flow has been positive but slightly volatile, with a significant drop in the latest year. The free cash flow generation is weak, with a free cash flow to net income ratio of 0, partially due to zero capital expenditures reported. This may indicate constraints on cash for reinvestment or possible underinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.59B	2.49B	2.12B	1.81B	2.04B	1.55B
Gross Profit	380.73M	365.67M	340.56M	289.44M	257.13M	205.86M
EBITDA	196.61M	191.45M	201.00M	189.48M	153.65M	153.65M
Net Income	134.00M	127.12M	120.47M	96.02M	66.69M	77.18M
Balance Sheet
Total Assets	2.10B	2.00B	1.76B	1.53B	1.21B	1.15B
Cash, Cash Equivalents and Short-Term Investments	634.42M	562.53M	566.53M	457.77M	186.03M	80.59M
Total Debt	0.00	909.00K	0.00	0.00	0.00	866.00K
Total Liabilities	1.30B	1.20B	1.03B	872.50M	641.22M	639.82M
Stockholders Equity	805.24M	803.16M	730.21M	653.16M	572.83M	507.34M
Cash Flow
Free Cash Flow	194.68M	275.42M	142.78M	293.39M	131.83M	57.85M
Operating Cash Flow	303.41M	376.94M	279.80M	399.39M	252.12M	179.65M
Investing Cash Flow	-374.85M	-320.07M	-120.73M	-103.25M	-120.10M	-121.87M
Financing Cash Flow	-60.58M	-60.88M	-50.30M	-24.39M	-26.58M	-31.80M

Chinney Kin Wing Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1556, the sentiment is Positive. The current price of 0.35 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.34, and above the 200-day MA of 0.33, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.60 is Negative, neither overbought nor oversold. The STOCH value of 108.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1556.

Chinney Kin Wing Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1556	78 Outperform	HK$532.50M	3.98	17.51%	5.71%	17.51%	1.48%
6829	64 Neutral	HK$809.28M	95.58	2.76%	―	22.30%	48.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0610	60 Neutral	HK$690.02M	-0.12	-127.12%	―	12.80%	-270.01%
8021	43 Neutral	HK$158.04M	4.07	-1.80%	―	-3.98%	37.50%