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

• Market Cap: HK$206.40M
• Dividend Yield: N/A
• Average Volume (3M): 146.40K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• 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$0.43 ▲(114.00% Upside)

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

Diversified revenue streams

Having construction contracts plus property sales and rental income provides multiple cash-flow channels over time. This diversification can smooth revenue volatility across project cycles, support recovery when one segment lags, and underpins longer-term resilience if execution stabilizes.

Construction and property expertise

Domain expertise in both construction and property development confers structural advantages in project bidding, execution and client relationships. Sustained technical capability and local market knowledge increase the likelihood of repeat contracts and enable competitive positioning in Hong Kong's built-environment sector.

Strategic supplier and subcontractor partnerships

Long-term partnerships with suppliers and subcontractors can lower procurement costs, improve resource availability, and shorten mobilization times. These structural relationships help the company bid more competitively, reduce project execution risk, and potentially support margin recovery when operations normalize.

Negative Factors

Negative stockholders' equity

Negative equity signals capital erosion and indicates solvency risk. Over months this weakens borrowing capacity, discourages counterparties, and limits the firm's ability to fund working capital and new projects without equity injections, increasing long-term survival and growth uncertainty.

Negative operating cash flow

Persistent negative operating cash flow demonstrates failure to convert operations into liquid resources. This constrains funding for capex, tender bids and project cash requirements, raising reliance on external financing or asset sales and stressing liquidity across multiple quarters.

Declining revenue and persistent losses

Sustained revenue decline and negative margins point to structural issues in pricing, cost control, or project mix. Over a multi-month horizon, continued losses erode operating flexibility, deter new business, and limit internal reinvestment, making recovery dependent on meaningful operational turnaround or capital support.

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

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	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: Negative
• 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 0.34, below the 50-day MA of 0.31, and below the 200-day MA of 0.21, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 74.24 is Negative, neither overbought nor oversold. The STOCH value of 70.64 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%
1630	53 Neutral	HK$130.50M	-7.19	-14.78%	―	-28.21%	34.59%
1546	52 Neutral	HK$195.20M	-3.63	-41.65%	―	54.20%	-833.33%
1557	49 Neutral	HK$206.40M	-9.00	―	―	-52.58%	69.44%
3789	49 Neutral	HK$117.60M	196.00	0.18%	―	-2.05%	―
1826	44 Neutral	HK$259.74M	-487.50	―	―	11.52%	98.72%
2195	43 Neutral	HK$76.96M	-2.41	-19.00%	―	48.86%	54.49%

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.

The most recent analyst rating on (HK:1557) stock is a Hold with a HK$0.22 price target. To see the full list of analyst forecasts on K.H. Group Holdings Ltd. stock, see the HK:1557 Stock Forecast page.

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.

The most recent analyst rating on (HK:1557) stock is a Hold with a HK$0.20 price target. To see the full list of analyst forecasts on K.H. Group Holdings Ltd. stock, see the HK:1557 Stock Forecast page.