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

• Market Cap: HK$172.80M
• Dividend Yield: N/A
• Average Volume (3M): 146.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• 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: 244,400
• 30 Day Avg. Volume: 146,266
• 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: 46 Neutral
• Price Target: HK$0.37 ▲(86.00% Upside)

The overall stock score of 46 reflects significant financial challenges, including declining revenues, negative profit margins, and a precarious balance sheet. While technical analysis shows short-term bullish trends, the overbought indicators suggest caution. The negative P/E ratio and lack of dividend yield further weigh on the stock's attractiveness.

Positive Factors

Strategic Partnerships

These partnerships help secure lucrative projects and optimize costs, enhancing long-term financial performance and market position.

Diversified Revenue Streams

Diversification across construction and real estate sectors provides stability and potential for growth in varying market conditions.

Industry Focus

Concentration in these sectors allows the company to leverage expertise and capitalize on Hong Kong's real estate demand.

Negative Factors

Negative Equity

Negative equity indicates potential insolvency risks, limiting financial flexibility and increasing reliance on debt.

Declining Revenues

Consistent revenue decline suggests weakening market position and challenges in maintaining competitive advantage.

Negative Cash Flow

Negative cash flow indicates struggles in cash generation, impacting liquidity and ability to invest in growth opportunities.

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 generates revenue primarily through its construction services and property development projects. The company undertakes various construction contracts, providing services for both public and private sector clients, which contributes a significant portion of its revenue. Additionally, revenue is derived from the sale and leasing of developed properties, allowing the company to capitalize on the growing demand for real estate in Hong Kong. Key revenue streams include contract income from construction projects, sales of residential and commercial properties, and rental income from its investment properties. Strategic partnerships with suppliers, subcontractors, and other stakeholders in the construction and real estate markets further enhance the company's ability to secure lucrative projects and optimize costs, contributing to its overall financial performance.

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	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: Positive
• Last Price: 0.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 0.2 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.22, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 66.24 is Neutral, neither overbought nor oversold. The STOCH value of 61.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
3789	54 Neutral	HK$114.00M	190.00	0.18%	―	-2.05%	―
1630	52 Neutral	HK$64.50M	-3.55	-14.78%	―	-28.21%	34.59%
1557	46 Neutral	HK$172.80M	―	―	―	-52.58%	69.44%
1826	44 Neutral	HK$75.92M	-142.50	―	―	11.52%	98.72%
2195	43 Neutral	HK$55.68M	-2.09	-19.00%	―	48.86%	54.49%
1546	41 Neutral	HK$47.20M	-0.92	-41.65%	―	54.20%	-833.33%

K.H. Group Holdings Ltd. Corporate Events

K.H. Group Holdings Clarifies CEO Compensation Details

K.H. Group Holdings Limited has announced supplemental information regarding the appointment of Mr. Xie Peng as Chief Executive Officer. Mr. Xie was to receive an annual salary of HK$2,040,000, but he did not receive any salary or emolument during his tenure from August 13, 2018, to January 4, 2019, when he resigned. This announcement clarifies the financial terms of Mr. Xie’s appointment, which may have implications for the company’s executive compensation policies.

K.H. Group Holdings Announces Interim Results for 2025

K.H. Group Holdings Limited has announced its unaudited consolidated interim results for the six months ended 30 September 2025. The announcement complies with the listing requirements of the Hong Kong Stock Exchange and will be available on both the company’s and the Stock Exchange’s websites. The interim report will also be dispatched to shareholders in due course.

K.H. Group Holdings Ltd. Issues Supplemental Announcement on Annual Report

K.H. Group Holdings Ltd. has issued a supplemental announcement to its annual report for the year ending March 31, 2025, detailing the utilization and reallocation of net proceeds. The company has allocated funds towards business development, general working capital, and repayment of bank borrowings, with a significant portion of unutilized proceeds expected to be used by the end of 2025. This announcement does not alter any other information in the annual report and maintains the company’s strategic focus on enhancing its construction business operations.

K.H. Group Holdings Announces Unanimous Approval of AGM Resolutions

K.H. Group Holdings Limited, a company incorporated in the Cayman Islands, held its 2025 Annual General Meeting on September 11, 2025, where all proposed resolutions were unanimously approved by shareholders. These resolutions included the approval of financial statements, re-election of directors, reappointment of auditors, and granting of mandates for share issuance and repurchase, indicating strong shareholder support and a stable governance structure.