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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:1559

Kwan On Holdings Ltd.

(1559)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
HK$0.08
▲(8.57% Upside)
The score is primarily held down by weak financial performance (sharp revenue decline, ongoing losses, and negative operating cash flow). Technical indicators are broadly neutral with only a mild positive MACD, while valuation is constrained by negative earnings and no dividend yield data.
Positive Factors
Low leverage
A debt-to-equity of ~0.10 materially reduces financial risk and interest burden, improving flexibility to bid on large contracts and absorb project delays. Over months this supports solvency and capacity to fund operations or opportunistic investments versus higher-leverage peers.
Diversified revenue and contract mix
Operations across construction, specialized works and property investment, plus fixed-price and cost-plus contracts, create multiple revenue channels. Structurally this mitigates cyclicality: cost-plus work preserves margins on some projects while property and specialized works smooth revenue through cycles.
Established public/private partnerships
Established partnerships with government agencies and private developers provide a steadier project pipeline and preferred access to public tenders. Structurally this enhances revenue visibility, reduces bidding volatility, and helps sustain backlog and cash inflows across multiple reporting periods.
Negative Factors
Sharp revenue decline
A >50% year-on-year revenue decline erodes economies of scale and indicates materially lower contract awards or execution. Over 2–6 months this reduces fixed-cost absorption, limits ability to retain skilled staff, and weakens negotiating leverage on subcontracting and supplies, hampering recovery.
Persistent unprofitability
Consistent negative net profit and EBIT margins point to structural cost or pricing shortfalls. Persistent losses impair retained earnings and capex funding, limit reinvestment in capabilities, and necessitate ongoing outside financing or asset sales to sustain operations absent a clear margin turnaround.
Weak operating cash flow
Negative operating cash flow and a >100% deterioration in free cash flow signal operational cash generation failure. This forces reliance on external funding or asset disposals to meet working capital, constraining bidding ability on new contracts and increasing long-term financial fragility.

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 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
Overall financial performance is weak: revenue fell sharply (-51.8%), the company remains unprofitable with negative margins, and operating/free cash flow trends are negative. Lower leverage (debt-to-equity ~0.10) is a relative positive, but persistent losses and cash generation issues dominate.
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 Revenue316.27M316.27M654.45M624.19M515.36M538.73M
Gross Profit3.78M3.78M-118.25M-31.59M-35.72M12.07M
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 Assets196.05M196.05M650.74M854.54M808.94M959.07M
Cash, Cash Equivalents and Short-Term Investments20.73M20.73M26.54M47.62M149.35M172.43M
Total Debt7.66M7.66M88.46M181.03M250.48M243.38M
Total Liabilities152.98M152.98M517.14M514.88M382.80M437.91M
Stockholders Equity75.67M75.67M170.01M341.52M427.53M521.70M
Cash Flow
Free Cash Flow-11.11M-10.19M30.68M-52.33M-19.14M103.95M
Operating Cash Flow-11.05M-10.13M31.32M-49.01M-17.03M114.73M
Investing Cash Flow-2.62M43.01M39.55M-14.61M2.71M-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
Positive
Last Price0.07
Price Trends
50DMA
0.08
Positive
100DMA
0.08
Positive
200DMA
0.08
Positive
Market Momentum
MACD
<0.01
Negative
RSI
59.46
Neutral
STOCH
84.17
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1559, the sentiment is Positive. 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 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.46 is Neutral, neither overbought nor oversold. The STOCH value of 84.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1559.

Kwan On Holdings Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
HK$384.00M5.1227.58%81.81%724.56%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
53
Neutral
HK$7.44B6,200.001.30%78.48%-33.33%
49
Neutral
HK$132.81M-11.22-0.68%7.69%-33.92%-94.74%
49
Neutral
HK$229.56M-2.91-16.00%9.19%84.15%
47
Neutral
HK$70.56M-4.57-9.58%3.97%14.02%
45
Neutral
HK$168.22M-2.07-46.27%-63.83%36.12%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1559
Kwan On Holdings Ltd.
0.09
-0.01
-12.62%
HK:9998
Kwan Yong Holdings Limited
0.48
0.39
433.33%
HK:1459
Jujiang Construction Group Co., Ltd. Class H
0.25
-0.12
-31.78%
HK:1707
Geotech Holdings Ltd.
0.04
-0.06
-56.70%
HK:1757
Affluent Foundation Holdings Ltd.
6.20
6.07
4669.23%
HK:1865
Trendzon Holdings Group Limited
0.25
>-0.01
-1.61%

Kwan On Holdings Ltd. Corporate Events

Kwan On Plans HK$65 Million Non-Underwritten Rights Issue to Cut Debt and Fund Projects
Jan 26, 2026

Kwan On Holdings Ltd. plans to raise up to approximately HK$65.42 million through a non-underwritten rights issue, offering one rights share for every two shares held at a subscription price of HK$0.07 per share, available only to qualifying shareholders, whose holdings will be diluted if they do not subscribe. The company intends to use about 70.7% of the estimated HK$63.62 million net proceeds to repay group liabilities, 15.7% to support development and working capital needs for new construction projects, and the remaining 13.6% as general working capital, while controlling shareholder Sino Coronet has given an irrevocable undertaking to subscribe for its full entitlement and maintain its existing stake, with applications subject to possible scale-down to avoid triggering takeover obligations or breaching public float requirements.

The most recent analyst rating on (HK:1559) stock is a Hold with a HK$0.08 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 Overhauls Top Management, Appoints New Executive Director and CEO
Jan 26, 2026

Kwan On Holdings Limited has announced a reshuffle of its senior management and board roles, including changes to its executive directorship, chief executive position, authorised representative, compliance officer, and remuneration committee membership, effective 26 January 2026. Executive director and chief executive officer Zhang Fangbing has resigned to focus on personal business and has simultaneously stepped down as authorised representative, compliance officer and remuneration committee member, with the board noting no disagreements or issues related to his departure; existing executive director Sun Xiaoran has been promoted to chief executive officer and takes on the additional regulatory and committee roles, while veteran finance and investment executive Gu Xiaochong joins the board as an executive director, bringing extensive experience in commerce, finance, investment and corporate management that may strengthen the group’s governance and strategic capabilities.

The most recent analyst rating on (HK:1559) stock is a Hold with a HK$0.08 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 Sets Out Board and Committee Structure
Jan 26, 2026

Kwan On Holdings Limited has announced the current composition of its board of directors, led by chairman Chen Zhenghua and chief executive officer Sun Xiaoran, alongside executive director Gu Xiaochong, non-executive director Li Yuping and three independent non-executive directors, Lam Sing Kwong, Simon, Lum Pak Sum and Gong Zhenzhi. The company has also detailed the membership and chairmanship of its four key board committees—Audit, Remuneration, Nomination and Risk Management—clarifying oversight responsibilities, with independent directors taking leading roles, a move that underscores its emphasis on corporate governance, risk oversight and regulatory compliance for shareholders and other stakeholders.

The most recent analyst rating on (HK:1559) stock is a Hold with a HK$0.08 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 Ltd. Reports Interim Financial Results for 2025
Nov 28, 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
Nov 27, 2025

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
Nov 27, 2025

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
Nov 6, 2025

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.

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: Jan 28, 2026