Kwan On Holdings Ltd. (1559) AI Stock Analysis

• Market Cap: HK$158.88M
• Dividend Yield: N/A
• Average Volume (3M): 119.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -63.83%
• EPS Growth: 36.12%
• Country: HK
• Employees: 97
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,869,159,900
• 10 Day Avg. Volume: 160,000
• 30 Day Avg. Volume: 119,416
• PEG Ratio: 0.06
• Price to Book (P/B): 3.06
• Price to Sales (P/S): 0.73
• P/FCF Ratio: -22.75
• 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: 40 Underperform
• Price Target: HK$0.07 ▼(-2.86% Downside)

The score is driven mainly by weak financial performance (sharp revenue decline, ongoing losses, and negative operating cash flow). Technicals add further pressure with a clear downtrend despite oversold signals. Valuation is also constrained by a negative P/E and no dividend yield data.

Positive Factors

Low Leverage

The company's low leverage provides financial stability and reduces the risk of financial distress, allowing more flexibility in operations and potential investments.

Strategic Partnerships

Strong partnerships with government and private entities ensure a steady flow of projects, supporting long-term revenue stability and growth potential.

Diversified Revenue Streams

Diversification into property development alongside construction services mitigates risk and provides multiple revenue avenues, enhancing resilience against sector-specific downturns.

Negative Factors

Revenue Decline

A significant decline in revenue indicates challenges in maintaining market share or project acquisition, potentially impacting long-term growth and market position.

Negative Profitability

Persistent negative profitability and low margins suggest operational inefficiencies or cost pressures, which could hinder sustainable growth and competitiveness.

Weak Cash Flow

Negative cash flow from operations and declining free cash flow indicate liquidity challenges, limiting the company's ability to invest in growth opportunities or weather economic downturns.

Kwan On Holdings Ltd. Business Overview & Revenue Model

Company Description

Kwan 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 Money

Kwan On Holdings generates revenue primarily through its construction and civil engineering services, which involve bidding for and executing contracts for public infrastructure projects and private developments. The company earns income from both fixed-price contracts and cost-plus contracts, allowing for flexibility in project pricing. Additionally, revenue is supplemented through property development activities, where the company develops residential and commercial properties for sale or lease. Key partnerships with government agencies and private developers enhance its project pipeline, while ongoing maintenance and specialized works also contribute to its earnings. The company's diversified portfolio and strategic focus on quality and efficiency enable it to capitalize on growth opportunities in the construction sector.

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. While there has been some improvement in leverage, the company's profitability and cash generation capabilities remain concerning. The engineering and construction industry may pose additional risks due to its cyclical nature.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	316.27M	316.27M	654.45M	624.19M	515.36M	538.73M
Gross Profit	3.78M	3.78M	-118.25M	-31.59M	-35.72M	12.07M
EBITDA	-19.34M	-52.86M	-167.25M	-87.30M	-47.78M	-218.00K
Net Income	-80.16M	-80.16M	-155.40M	-111.72M	-67.97M	-24.41M
Balance Sheet
Total Assets	196.05M	196.05M	650.74M	854.54M	808.94M	959.07M
Cash, Cash Equivalents and Short-Term Investments	20.73M	20.73M	26.54M	47.62M	149.35M	172.43M
Total Debt	7.66M	7.66M	88.46M	181.03M	250.48M	243.38M
Total Liabilities	152.98M	152.98M	517.14M	514.88M	382.80M	437.91M
Stockholders Equity	75.67M	75.67M	170.01M	341.52M	427.53M	521.70M
Cash Flow
Free Cash Flow	-11.11M	-10.19M	30.68M	-52.33M	-19.14M	103.95M
Operating Cash Flow	-11.05M	-10.13M	31.32M	-49.01M	-17.03M	114.73M
Investing Cash Flow	-2.62M	43.01M	39.55M	-14.61M	2.71M	-4.15M
Financing Cash Flow	-46.71M	-46.06M	-90.20M	-29.22M	-8.70M	-43.38M

Kwan On Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.24 is Neutral, neither overbought nor oversold. The STOCH value of 78.43 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9998	69 Neutral	HK$256.00M	3.41	27.58%	―	81.81%	724.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1459	49 Neutral	HK$130.14M	-10.99	-0.68%	7.69%	-33.92%	-94.74%
1757	49 Neutral	HK$5.62B	4,680.00	1.30%	―	78.48%	-33.33%
1865	49 Neutral	HK$224.33M	-2.91	-16.00%	―	9.19%	84.15%
1707	46 Neutral	HK$105.84M	-6.85	-9.58%	―	3.97%	14.02%
1559	40 Underperform	HK$158.88M	-1.95	-46.27%	―	-63.83%	36.12%

Kwan On Holdings Ltd. Corporate Events

Kwan On Holdings Ltd. Reports Interim Financial Results for 2025

Kwan On Holdings Ltd. reported its unaudited interim results for the six months ending September 30, 2025, showing a decrease in revenue from HK$119,619,000 in 2024 to HK$110,434,000 in 2025. Despite a reduction in administrative expenses and finance costs, the company experienced a loss before tax of HK$5,326,000, an improvement from the previous year’s loss of HK$9,495,000. The total comprehensive expense for the period was HK$2,079,000, significantly better than the HK$27,703,000 recorded in the same period last year. The results indicate a challenging period for the company, although there are signs of financial improvement compared to the previous year.

The most recent analyst rating on (HK:1559) stock is a Sell with a HK$0.07 price target. To see the full list of analyst forecasts on Kwan On Holdings Ltd. stock, see the HK:1559 Stock Forecast page.

Kwan On Holdings Announces Changes to Nomination Committee

Kwan On Holdings Limited, a company listed on the Stock Exchange of Hong Kong, has announced a change in the composition of its Nomination Committee. With effect from November 27, 2025, Mr. Chen Zhenghua has resigned from the committee, and Ms. Li Yuping has been appointed as a new member. This change is in compliance with corporate governance codes and aims to enhance the diversity and governance of the company.

The most recent analyst rating on (HK:1559) stock is a Sell with a HK$0.07 price target. To see the full list of analyst forecasts on Kwan On Holdings Ltd. stock, see the HK:1559 Stock Forecast page.

Kwan On Holdings Limited Announces Board Composition and Roles

Kwan On Holdings Limited has announced the composition of its board of directors and their respective roles within the company. The board consists of executive directors, a non-executive director, and independent non-executive directors, who are also members of various board committees such as the Audit, Remuneration, Nomination, and Risk Management Committees. This announcement provides clarity on the leadership structure, which is crucial for stakeholders to understand the governance and decision-making processes within the company.

The most recent analyst rating on (HK:1559) stock is a Sell with a HK$0.07 price target. To see the full list of analyst forecasts on Kwan On Holdings Ltd. stock, see the HK:1559 Stock Forecast page.

Kwan On Holdings Schedules Board Meeting to Review Interim Results

Kwan On Holdings Limited has announced a board meeting scheduled for November 28, 2025, to consider and approve the interim results for the six months ending September 30, 2025. The meeting will also discuss the potential recommendation of a dividend payment, which could impact the company’s financial strategy and shareholder returns.