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

• Market Cap: HK$77.28M
• Dividend Yield: N/A
• Average Volume (3M): 3.60K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.07
• Revenue Growth: -26.03%
• EPS Growth: 1.48%
• Country: HK
• Employees: 71
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): -0.03
• Shares Outstanding: 480,000,000
• 10 Day Avg. Volume: 10,400
• 30 Day Avg. Volume: 3,600
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily driven by significant financial challenges, including declining revenues, negative profit margins, and a precarious balance sheet. While technical analysis shows some positive momentum, the negative valuation metrics further weigh down the score. The absence of earnings call data and corporate events limits additional insights.

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

Company Description

K. H. Group Holdings Limited, an investment holding company, provides foundation services in Hong Kong and the People's Republic of China. The company operates through Foundation and Others segments. It is also involved in the leasing of machinery and trading of electronic devices. The company was founded in 1985 and is headquartered in Kowloon, Hong Kong. K. H. Group Holdings Limited is a subsidiary of Blessing Well Enterprise Limited.

How the Company Makes Money

K.H. Group Holdings generates revenue through multiple streams, primarily from its construction contracts and project management services. The company undertakes a variety of projects, including commercial buildings, residential developments, and infrastructure works, which are typically awarded through competitive bidding processes. Revenue is recognized upon the completion of milestones within these contracts. Additionally, K.H. Group Holdings may engage in joint ventures or partnerships with other firms to share resources and expertise, thereby expanding its project portfolio and enhancing its market reach. The company also focuses on operational efficiency and cost management to improve profit margins on its projects.

K.H. Group Holdings Ltd. Financial Statement Overview

Summary

K.H. Group Holdings Ltd. faces substantial financial difficulties across all verticals. The income statement shows declining revenues and persistent losses, while the balance sheet highlights a precarious financial position with negative equity. Cash flow challenges further exacerbate the situation, with negative operating cash flow and declining free cash flow. The company must address these issues to stabilize its financial health and ensure long-term viability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	174.69M	129.58M	175.17M	245.35M	751.77M	933.80M
Gross Profit	22.63M	-43.74M	-31.04M	-28.98M	29.75M	41.65M
EBITDA	-63.73M	-53.24M	-37.93M	-53.88M	275.00K	18.64M
Net Income	-72.86M	-57.59M	-51.56M	-74.11M	-18.35M	1.07M
Balance Sheet
Total Assets	136.96M	273.95M	201.99M	440.04M	658.02M	682.89M
Cash, Cash Equivalents and Short-Term Investments	72.12M	48.48M	84.50M	58.76M	57.90M	6.40M
Total Debt	17.99M	54.06M	25.67M	211.69M	281.75M	201.95M
Total Liabilities	207.11M	358.15M	227.75M	439.01M	582.88M	589.40M
Stockholders Equity	-70.15M	-84.20M	-25.76M	1.03M	75.14M	93.49M
Cash Flow
Free Cash Flow	32.87M	-6.51M	52.74M	42.71M	14.55M	-82.30M
Operating Cash Flow	33.03M	-6.51M	52.92M	42.72M	16.32M	-79.28M
Investing Cash Flow	41.89M	628.00K	80.25M	30.23M	-43.10M	-23.02M
Financing Cash Flow	-52.30M	-29.26M	-102.47M	-69.73M	89.11M	26.90M

K.H. Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 0.16 is below the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.15, and above the 200-day MA of 0.15, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 60.23 is Neutral, neither overbought nor oversold. The STOCH value of 80.77 is Negative, 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 *	64 Neutral	$10.70B	16.30	6.50%	2.13%	2.67%	-20.48%
3789	62 Neutral	HK$73.20M	―	-1.93%	―	-6.72%	-161.73%
1826	55 Neutral	HK$98.57M	10.00	-265.97%	―	141.76%	―
1546	52 Neutral	HK$59.20M	―	-35.67%	―	55.11%	-717.31%
1557	49 Neutral	HK$77.28M	―		―	-26.03%	1.48%
1630	49 Neutral	HK$75.00M	―	-8.05%	―	-29.39%	78.42%
2195	―	HK$80.34M	―	-21.89%	―	―	―

K.H. Group Holdings Ltd. Corporate Events

K.H. Group Holdings Announces 2025 AGM and Key Resolutions

K.H. Group Holdings Limited has announced the scheduling of its 2025 Annual General Meeting (AGM) to be held on September 11, 2025, in Hong Kong. The meeting will address several key resolutions, including the approval of the audited financial statements for the year ending March 31, 2025, the re-election of directors, and the re-appointment of auditors. Additionally, the company seeks shareholder approval to authorize the board to allot and issue shares, subject to certain conditions, which may impact the company’s capital structure and shareholder value.

K. H. Group Holdings Announces Winding-Up of Major Subsidiary

K. H. Group Holdings Limited has announced the winding-up of its major subsidiary, K. H. Foundations Limited (KHF), following a court order. The company has appointed Ms. Chua Suk Lin Ivy and Mr. Lau Kwok Hung of Crowe (HK) CPA Limited as joint and several liquidators. This development is significant for the company’s operations and stakeholders, as it impacts the financial stability and future operations of K. H. Group Holdings Limited.

K. H. Group’s Major Subsidiary Wound Up Amid Industry Challenges

K. H. Group Holdings Limited announced that its major subsidiary, K. H. Foundations Limited (KHF), has been wound up by court order due to the challenging conditions in Hong Kong’s property development sector. Despite KHF’s suspension of operations since January 2025, the company expects no significant adverse impact on its overall financial position or operations.

K. H. Group Holdings Ltd. Reports Annual Results with Significant Losses

K. H. Group Holdings Ltd. reported its annual results for the year ended March 31, 2025, showing a significant decline in revenue from HK$175,174,000 in 2024 to HK$129,580,000 in 2025, resulting in a gross loss of HK$43,738,000. The company also faced a total comprehensive loss of HK$58,440,000, impacted by various impairments and write-offs, despite a gain on bargain purchase on acquisition of subsidiaries.

K.H. Group Holdings Updates Nomination Committee Terms

K.H. Group Holdings Limited has announced amendments to the terms of reference for its Nomination Committee, which was initially adopted in 2016. The Committee, responsible for overseeing the structure and composition of the Board, will now require a majority of its members to be independent non-executive directors, with at least one member of a different gender. These changes aim to enhance the Board’s diversity and effectiveness, aligning with the company’s corporate strategy and governance standards.

K. H. Group Holdings to Announce Annual Results and Dividend Consideration

K. H. Group Holdings Limited has announced that its Board of Directors will convene on June 27, 2025, to approve the annual results for the fiscal year ending March 31, 2025, and to consider recommending a final dividend. This meeting is significant as it will determine the financial outcomes and shareholder returns, impacting the company’s operations and potentially influencing its market position.

K. H. Group Holdings Faces Amended Winding-Up Petition

K. H. Group Holdings Limited announced an update regarding a winding-up petition against its subsidiary, K. H. Foundations Limited. The original petition filed by Ince & Co was dismissed, but King Topwell International Limited has been granted permission to substitute as the petitioner and file an amended petition concerning unpaid invoices totaling approximately HK$2.7 million. The hearing for this amended petition is scheduled for 16 July 2025. The company advises shareholders and potential investors to exercise caution when dealing with its shares.

K.H. Group Holdings Announces Adjournment of Subsidiary’s Winding-Up Petition Hearing

K.H. Group Holdings Limited has announced an update regarding the adjournment of a winding-up petition hearing against its wholly-owned subsidiary, K.H. Foundations Limited. Initially scheduled for 7 May 2025, the hearing has now been postponed to 21 May 2025. The company assures its shareholders and investors that it will provide further updates on significant developments related to the petition as per the Listing Rules, advising caution when dealing in the company’s shares.