K.H. Group Holdings Ltd. (1557) AI Stock Analysis

• Market Cap: HK$158.40M
• Dividend Yield: N/A
• Average Volume (3M): 146.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.33
• Revenue Growth: -52.58%
• EPS Growth: 69.44%
• Country: HK
• Employees: 71
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.02
• Shares Outstanding: 480,000,000
• 10 Day Avg. Volume: 10,800
• 30 Day Avg. Volume: 146,400
• PEG Ratio: 0.00
• Price to Book (P/B): -0.72
• Price to Sales (P/S): 0.47
• P/FCF Ratio: -9.36
• 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: 49 Neutral
• Price Target: HK$0.33 ▲(64.00% Upside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

The score is held down primarily by very weak financial performance (losses, negative equity, and negative operating cash flow), partially offset by favorable technical momentum with the price trading above key moving averages. Valuation remains unattractive/uncertain due to a negative P/E and no dividend yield.

Positive Factors

Lean headcount

A small headcount (71 employees) implies a lean operating model and lower fixed overhead. Over a 2–6 month horizon this can reduce cash burn, enable quicker restructuring or redeployment of resources, and improve operational flexibility while management pursues stabilization.

Low equity volatility

The company's low beta (~0.33) signifies historically lower equity volatility. For durable fundamentals, lower volatility often corresponds with steadier cash flows or contract work, easing refinancing and planning. This lowers financing strain and supports steadier execution over months.

EPS growth trend

Reported EPS growth of ~69% signals improving earnings metrics or recovery dynamics. If driven by operational improvements rather than one-offs, this trend could indicate better unit economics and margin leverage as revenues stabilize, supporting a medium-term operational recovery.

Negative Factors

Negative equity

Negative stockholders' equity indicates accumulated losses and solvency stress. This condition limits access to debt financing, increases creditor scrutiny, and reduces strategic flexibility, materially elevating refinancing and default risk over the coming months.

Cash generation failure

Persistent negative operating cash flow and declining free cash flow show the company cannot convert profits into cash. This forces reliance on external financing or asset sales, heightens liquidity risk, and increases the chance of covenant breaches within a 2–6 month horizon.

Revenue & margin deterioration

Sharp top-line declines and persistently negative gross/EBITDA/net margins point to loss of scale and weak pricing or execution. Structural revenue contraction undermines operating leverage and competitive positioning, raising questions about long-term viability absent turnaround.

K.H. Group Holdings Ltd. Business Overview & Revenue Model

Company Description

K.H. Group Holdings Ltd. (1557) is a diversified investment holding company based in Hong Kong. The company operates primarily in the construction and property sectors, focusing on providing construction services, property development, and investment. K.H. Group Holdings aims to leverage its expertise to deliver high-quality projects and create value in the real estate market, while also exploring opportunities in related sectors to enhance its portfolio.

How the Company Makes Money

K.H. Group Holdings Ltd. Financial Statement Overview

Summary

Financial statements indicate severe weakness: declining revenue with persistent losses (negative gross, EBIT/EBITDA, and net margins), a balance sheet with negative equity suggesting elevated solvency risk, and negative operating cash flow with deteriorating free cash flow pressuring liquidity.

Income Statement

The income statement reveals significant challenges, with declining revenues and negative profit margins. The gross profit margin and net profit margin are both negative, indicating the company is not covering its costs effectively. Revenue has decreased sharply over the years, with a notable decline of 25.8% in the latest year. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet shows a concerning financial structure with negative stockholders' equity, indicating potential insolvency risks. The debt-to-equity ratio is negative due to negative equity, and the return on equity is highly volatile. The equity ratio is also negative, suggesting the company is heavily reliant on debt financing, which poses significant financial risk.

Cash Flow

Cash flow analysis indicates severe issues with cash generation. The operating cash flow is negative, and free cash flow has declined significantly. The free cash flow to net income ratio is around 1, but this is due to both metrics being negative. The company struggles to convert its earnings into cash, which is a critical concern for liquidity.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	82.83M	129.58M	175.17M	245.35M	751.77M	933.80M
Gross Profit	-31.42M	-43.74M	-31.04M	-28.98M	29.75M	41.65M
EBITDA	-15.81M	-53.24M	-37.93M	-53.88M	275.00K	18.64M
Net Income	-22.93M	-57.59M	-51.56M	-74.11M	-18.35M	1.07M
Balance Sheet
Total Assets	195.76M	273.95M	201.99M	440.04M	658.02M	682.89M
Cash, Cash Equivalents and Short-Term Investments	2.61M	48.48M	84.50M	58.76M	57.90M	6.40M
Total Debt	50.53M	54.06M	25.67M	211.69M	281.75M	201.95M
Total Liabilities	126.34M	358.15M	227.75M	439.01M	582.88M	589.40M
Stockholders Equity	69.42M	-84.20M	-25.76M	1.03M	75.14M	93.49M
Cash Flow
Free Cash Flow	32.17M	-6.51M	52.74M	42.71M	14.55M	-82.30M
Operating Cash Flow	33.49M	-6.51M	52.92M	42.72M	16.32M	-79.28M
Investing Cash Flow	-72.83M	628.00K	80.25M	30.23M	-43.10M	-23.02M
Financing Cash Flow	-28.91M	-29.26M	-102.47M	-69.73M	89.11M	26.90M

K.H. Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.20
• 50DMA: Negative
• 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:1557, the sentiment is Neutral. The current price of 0.2 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.35, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.59 is Neutral, neither overbought nor oversold. The STOCH value of 54.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1557.

K.H. Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1557	49 Neutral	HK$158.40M	-2.34	310.17%	―	-52.58%	69.44%
1630	49 Neutral	HK$105.00M	23.50	-16.01%	―	-28.21%	34.59%
3789	49 Neutral	HK$142.80M	4.72	0.18%	―	-2.05%	―
1546	45 Neutral	HK$156.80M	-0.77	-48.75%	―	54.20%	-833.33%
1826	44 Neutral	HK$270.13M	-7.35	-56.18%	―	11.52%	98.72%
2195	43 Neutral	HK$65.12M	-1.06	-19.64%	―	48.86%	54.49%