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

Kwan On Holdings Ltd. (1559) AI Stock Analysis

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HK

Kwan On Holdings Ltd.

(1559)

Rating:40Underperform
Price Target:
Kwan On Holdings Ltd. faces significant financial instability, with declining revenue and profitability posing major challenges. The technical analysis indicates weak momentum, and the valuation is unattractive due to ongoing losses. The company must focus on operational efficiency and revenue growth to improve its financial health.

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 Ltd. makes money primarily through its construction services, which involve building and engineering projects for both governmental and private clients. The company generates revenue by undertaking contracts for infrastructure projects, such as roads, bridges, and public facilities. These contracts often involve long-term projects where Kwan On Holdings Ltd. earns money based on project milestones and completion. Key revenue streams include payments from government contracts, private developers, and partnerships with other construction firms. Additionally, the company might engage in joint ventures or partnerships with other engineering firms to expand its project base and enhance its service offerings. Strategic partnerships and a strong reputation in the construction industry contribute significantly to its earnings.

Kwan On Holdings Ltd. Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
654.45M624.19M515.36M538.73M599.91M
Gross Profit
-118.25M-31.59M-35.72M12.07M66.01M
EBIT
-173.06M-107.95M-72.86M-31.94M19.22M
EBITDA
-167.25M-87.30M-47.78M-182.00K36.48M
Net Income Common Stockholders
-155.40M-111.72M-67.97M-24.41M16.22M
Balance SheetCash, Cash Equivalents and Short-Term Investments
26.54M47.62M149.35M172.43M109.53M
Total Assets
650.74M854.54M808.94M959.07M927.80M
Total Debt
88.46M181.03M250.48M243.38M269.59M
Net Debt
61.93M133.40M101.13M70.95M160.06M
Total Liabilities
517.14M514.88M382.80M437.91M411.65M
Stockholders Equity
170.01M341.52M427.53M521.70M516.52M
Cash FlowFree Cash Flow
30.68M-52.33M-19.14M103.95M-276.64M
Operating Cash Flow
31.32M-49.01M-17.03M114.73M-267.81M
Investing Cash Flow
39.55M-14.61M2.71M-4.15M-519.00K
Financing Cash Flow
-90.20M-29.22M-8.70M-43.38M260.81M

Kwan On Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.08
Price Trends
50DMA
0.09
Negative
100DMA
0.11
Negative
200DMA
0.11
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
37.54
Neutral
STOCH
-6.98
Positive
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 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.09, and below the 200-day MA of 0.11, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.54 is Neutral, neither overbought nor oversold. The STOCH value of -6.98 is Positive, 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 (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$153.60M7.878.54%43.39%38.64%
66
Neutral
$4.44B12.085.34%5.82%4.17%-11.81%
54
Neutral
HK$173.34M31.860.31%6.15%-20.04%-58.20%
53
Neutral
HK$175.20M97.332.07%-34.92%
52
Neutral
HK$213.65M-17.29%-20.23%-1808.04%
51
Neutral
HK$184.80M-9.34%-40.18%3.09%
40
Underperform
HK$151.40M-62.02%9.07%-6.24%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1559
Kwan On Holdings Ltd.
0.08
-0.06
-42.86%
HK:9998
Kwan Yong Holdings Limited
0.19
0.07
58.33%
HK:1459
Jujiang Construction Group Co., Ltd. Class H
0.32
0.01
3.23%
HK:1707
Geotech Holdings Ltd.
0.11
0.04
57.14%
HK:1757
Affluent Foundation Holdings Ltd.
0.15
-0.02
-11.76%
HK:1865
Trendzon Holdings Group Limited
0.28
0.04
16.67%

Kwan On Holdings Ltd. Corporate Events

Kwan On Holdings Granted Waiver for Circular Dispatch Delay
Apr 22, 2025

Kwan On Holdings Ltd. announced a delay in the dispatch of a circular related to a major transaction involving a disposal and guarantee. The company received a waiver from the Hong Kong Stock Exchange to extend the dispatch deadline to May 23, 2025, due to the need for additional time to finalize important financial statements. This extension allows Kwan On Holdings to ensure compliance with listing rules while maintaining transparency with its shareholders.

Kwan On Holdings Completes Major Transaction with Subsidiary Disposal
Mar 31, 2025

Kwan On Holdings Limited, listed on the Hong Kong Stock Exchange, has completed a major transaction involving the disposal of a subsidiary and the provision of financial assistance. This completion marks a significant change in the company’s structure as the target company will no longer be consolidated within the group’s financial results, potentially impacting its financial reporting and strategic focus.

Kwan On Holdings Announces Major Subsidiary Disposal and Financial Assistance
Mar 27, 2025

Kwan On Holdings Limited announced a major transaction involving the disposal of a wholly-owned subsidiary and the provision of financial assistance. This transaction will result in the subsidiary no longer being consolidated into the company’s financial results. The company will continue to provide a guarantee for a bank facility, and the transaction requires shareholder approval under the Hong Kong Stock Exchange Listing Rules. The company has already obtained the necessary written approval from a major shareholder, Sino Coronet, which holds a majority of the company’s shares.

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.