Kwan On Holdings Ltd. (1559) AI Stock Analysis

• Market Cap: HK$149.53M
• Dividend Yield: N/A
• Average Volume (3M): 119.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -51.67%
• EPS Growth: 36.70%
• Country: HK
• Employees: 97
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.04
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 39 Underperform
• Price Target: HK$0.07 ▼(-8.75% Downside)

Kwan On Holdings Ltd. has a low overall stock score due to significant financial challenges, including declining revenues and persistent losses. The technical indicators suggest weak momentum, and the valuation is unattractive with a negative P/E ratio. These factors collectively contribute to a bearish outlook for the stock.

Kwan On Holdings Ltd. Business Overview & Revenue Model

Company Description

Kwan On Holdings Ltd. (1559) is a Hong Kong-based investment holding company primarily engaged in building construction, civil engineering, and property development. The company operates through various segments, including construction, specialized works, and property investment, providing a wide range of services that cater to both public and private sector clients. Kwan On Holdings focuses on delivering high-quality projects, leveraging its expertise in the construction industry to fulfill diverse customer needs.

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: Neutral
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1559, the sentiment is Neutral. The current price of 0.08 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.10, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.14 is Neutral, neither overbought nor oversold. The STOCH value of 85.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	75 Outperform	HK$424.00M	5.64	27.58%	―	81.81%	724.56%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1757	56 Neutral	HK$756.00M	700.00	1.19%	―	20.78%	-55.00%
1459	49 Neutral	HK$141.34M	-11.94	-0.68%	7.14%	-33.92%	-94.74%
1865	49 Neutral	HK$195.24M	-0.63	-17.97%	―	-0.02%	13.79%
1707	41 Neutral	HK$60.48M	-3.91	-9.58%	―	3.97%	14.02%
1559	39 Underperform	HK$149.53M	-1.52	-54.25%	―	-51.67%	36.70%

Kwan On Holdings Ltd. Corporate Events

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.

Kwan On Holdings Secures Unanimous Approval at 2025 AGM

Kwan On Holdings Limited announced that all resolutions proposed at its 2025 Annual General Meeting were unanimously approved by shareholders. The resolutions included the adoption of financial statements, reappointment of auditors, and re-election of directors, indicating strong shareholder support and stability in the company’s governance.