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Kwan On Holdings Ltd. (HK:1559)
:1559
Hong Kong Market
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Kwan On Holdings Ltd. (1559) AI Stock Analysis

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HK:1559

Kwan On Holdings Ltd.

(1559)

Rating:46Neutral
Price Target:
HK$0.00
▼(-100.00% Downside)
The overall stock score is primarily impacted by significant financial challenges, including declining revenues and persistent losses. Technical analysis provides some positive signals, but the stock's valuation remains unattractive due to a negative P/E ratio and lack of dividend yield.

Kwan On Holdings Ltd. (1559) vs. iShares MSCI Hong Kong ETF (EWH)

Kwan On Holdings Ltd. Business Overview & Revenue Model

Company DescriptionKwan On Holdings Limited, an investment holding company, engages in the construction and property development business in Hong Kong and internationally. It operates through Construction, Property Development, and Trading segments. The company offers construction and maintenance works on civil engineering contracts and building works contracts. It undertakes works related to buildings, waterworks, site formation, roads, and drainage services. The company also engages in the provision of contracting work on civil plumbing, fire protection, insulation, concrete repair, and related activities; property holding activities; and provision of construction site workmen services, as well as is involved in the trade of diesel and chemical materials. In addition, it develops and sells residential units, commercial units, and car parking spaces. The company was founded in 1975 and is headquartered in Central and Western, Hong Kong.
How the Company Makes MoneyKwan On Holdings generates revenue primarily through its construction contracts, which include public infrastructure projects such as highways, bridges, and public buildings, as well as private sector developments such as residential and commercial properties. The company typically earns money by bidding on construction projects and securing contracts, which provide a steady stream of income during the project's duration. Additionally, Kwan On may engage in property development, where it can profit from selling or leasing developed properties. Key revenue streams include fixed-price contracts, cost-plus contracts, and design-build contracts, where the company is involved in both the design and construction phases. Strategic partnerships with government agencies and private developers also play a crucial role in expanding its project portfolio and securing future work, contributing to its overall earnings.

Kwan On Holdings Ltd. Financial Statement Overview

Summary
Kwan On Holdings Ltd. faces significant financial challenges, with declining revenues, persistent losses, and negative cash flows. Despite some improvement in leverage, the company's profitability and cash generation capabilities remain concerning.
Income Statement
25
Negative
Kwan On Holdings Ltd. has experienced significant revenue decline with a negative growth rate of -51.8% in the latest year. The company has been consistently unprofitable, with negative net profit margins and EBIT margins over the past few years, indicating operational challenges. The gross profit margin is extremely low, reflecting cost pressures or inefficiencies.
Balance Sheet
40
Negative
The company's debt-to-equity ratio has improved to 0.10, indicating reduced leverage compared to previous years. However, the return on equity remains negative, suggesting that the company is not generating sufficient returns on shareholder investments. The equity ratio is relatively stable, but the overall financial health is concerning due to persistent losses.
Cash Flow
30
Negative
Cash flow from operations is negative, and free cash flow has deteriorated significantly, with a growth rate of -112.6%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite a positive free cash flow to net income ratio, the overall cash flow situation is weak.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue656.11M316.27M654.45M624.19M515.36M538.73M
Gross Profit-100.18M3.78M-118.25M-31.59M-35.72M12.07M
EBITDA-145.72M-52.86M-167.25M-87.30M-47.78M-182.00K
Net Income-127.30M-80.16M-155.40M-111.72M-67.97M-24.41M
Balance Sheet
Total Assets644.04M196.05M650.74M854.54M808.94M959.07M
Cash, Cash Equivalents and Short-Term Investments36.59M20.73M26.54M47.62M149.35M172.43M
Total Debt134.83M7.66M88.46M181.03M250.48M243.38M
Total Liabilities538.06M152.98M517.14M514.88M382.80M437.91M
Stockholders Equity141.64M75.67M170.01M341.52M427.53M521.70M
Cash Flow
Free Cash Flow80.91M-10.19M30.68M-52.33M-19.14M103.95M
Operating Cash Flow81.39M-10.13M31.32M-49.01M-17.03M114.73M
Investing Cash Flow58.54M43.01M39.55M-14.61M2.71M-4.15M
Financing Cash Flow-133.50M-46.06M-90.20M-29.22M-8.70M-43.38M

Kwan On Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.10
Price Trends
50DMA
0.09
Positive
100DMA
0.10
Negative
200DMA
0.11
Negative
Market Momentum
MACD
<0.01
Negative
RSI
51.16
Neutral
STOCH
75.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1559, the sentiment is Negative. The current price of 0.1 is above the 20-day moving average (MA) of 0.10, above the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.16 is Neutral, neither overbought nor oversold. The STOCH value of 75.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1559.

Kwan On Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$176.00M9.028.54%43.39%38.64%
62
Neutral
C$7.32B1.7510.22%2.41%10.46%-7.18%
54
Neutral
HK$210.68M38.730.31%5.06%-20.04%-58.20%
51
Neutral
HK$166.32M-9.34%-40.18%3.09%
46
Neutral
HK$214.95M-54.25%-51.67%36.70%
43
Neutral
HK$122.40M113.331.19%20.78%-55.00%
43
Neutral
HK$198.92M-17.97%-0.02%13.79%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1559
Kwan On Holdings Ltd.
0.10
-0.03
-23.08%
HK:9998
Kwan Yong Holdings Limited
0.22
0.10
83.33%
HK:1459
Jujiang Construction Group Co., Ltd. Class H
0.38
0.06
18.75%
HK:1707
Geotech Holdings Ltd.
0.10
0.03
42.86%
HK:1757
Affluent Foundation Holdings Ltd.
0.10
-0.06
-37.50%
HK:1865
Trendzon Holdings Group Limited
0.26
0.10
62.50%

Kwan On Holdings Ltd. Corporate Events

Kwan On Holdings Announces 2025 AGM and Key Resolutions
Aug 6, 2025

Kwan On Holdings Limited has announced its 2025 annual general meeting, scheduled for September 18, 2025, in Hong Kong. Key resolutions include the adoption of the company’s financial statements, reappointment of auditors, and re-election of directors. Additionally, the company seeks approval for a general mandate to issue additional shares, which could impact its capital structure and market positioning.

Kwan On Holdings Proposes Amendments to Articles of Association
Aug 1, 2025

Kwan On Holdings Limited has announced proposed amendments to its existing articles of association to align with the expanded paperless listing regime, electronic dissemination of corporate communications, and the new treasury shares regime under the Hong Kong Stock Exchange Listing Rules. The changes, which also include other housekeeping amendments, require shareholder approval at the annual general meeting scheduled for September 18, 2025. If approved, these amendments will modernize the company’s governance framework and potentially enhance operational efficiency.

Kwan On Holdings Reports Significant Losses in 2025 Annual Results
Jun 30, 2025

Kwan On Holdings Limited reported its annual results for the year ended March 31, 2025, revealing a significant decrease in revenue and a substantial loss for the year. The company faced challenges with net impairment losses and administrative expenses, leading to a loss from both continuing and discontinued operations. Despite a gain on the disposal of a subsidiary, the overall financial performance was impacted negatively, reflecting ongoing difficulties in the market.

Kwan On Holdings Schedules Board Meeting for Financial Results and Dividend Consideration
Jun 12, 2025

Kwan On Holdings Limited has announced a board meeting scheduled for June 30, 2025, to discuss and approve the financial results for the year ending March 31, 2025, and to consider recommending a dividend payment. This announcement indicates the company’s ongoing financial management and potential shareholder returns, which may impact its market positioning and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 09, 2025