Kwan On Holdings Ltd. (1559) AI Stock Analysis

• Market Cap: HK$149.53M
• Dividend Yield: N/A
• Average Volume (3M): 348.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.58
• Revenue Growth: -51.67%
• EPS Growth: 36.70%
• Country: HK
• Employees: 97
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): -0.04
• Shares Outstanding: 1,869,159,900
• 10 Day Avg. Volume: 194,000
• 30 Day Avg. Volume: 348,333
• 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: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 40 Underperform
• Price Target: HK$0.00 ▼(-100.00% Downside)

Kwan On Holdings Ltd. is facing significant financial difficulties, with declining revenues and persistent losses being the most critical factors impacting its stock score. Technical analysis indicates weak momentum, and valuation metrics are unattractive due to negative earnings. The absence of earnings call insights and corporate events further limits the stock's appeal.

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 construction and engineering activities. The company operates in several sectors, including civil engineering, building construction, and property development. Kwan On Holdings offers a range of services encompassing project management, planning, and execution of both public and private sector construction projects, contributing to the infrastructure development in the region.

How the Company Makes Money

Kwan 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

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	656.11M	316.27M	654.45M	624.19M	515.36M	538.73M
Gross Profit	-100.18M	3.78M	-118.25M	-31.59M	-35.72M	12.07M
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 Assets	644.04M	196.05M	650.74M	854.54M	808.94M	959.07M
Cash, Cash Equivalents and Short-Term Investments	36.59M	20.73M	26.54M	47.62M	149.35M	172.43M
Total Debt	134.83M	7.66M	88.46M	181.03M	250.48M	243.38M
Total Liabilities	538.06M	152.98M	517.14M	514.88M	382.80M	437.91M
Stockholders Equity	141.64M	75.67M	170.01M	341.52M	427.53M	521.70M
Cash Flow
Free Cash Flow	80.91M	-10.19M	30.68M	-52.33M	-19.14M	103.95M
Operating Cash Flow	81.39M	-10.13M	31.32M	-49.01M	-17.03M	114.73M
Investing Cash Flow	58.54M	43.01M	39.55M	-14.61M	2.71M	-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 Price: 0.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.08 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 0.10, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 41.28 is Neutral, neither overbought nor oversold. The STOCH value of 23.25 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	71 Outperform	HK$195.20M	10.00	8.54%	―	43.39%	38.64%
Sector *	64 Neutral	$10.85B	16.20	8.89%	1.97%	2.67%	-15.04%
1757	53 Neutral	HK$181.20M	167.78	1.19%	―	20.78%	-55.00%
1707	51 Neutral	HK$168.00M	―	-9.58%	―	3.97%	14.02%
1459	46 Neutral	HK$192.01M	37.25	-0.68%	5.48%	-33.92%	-94.74%
1865	43 Neutral	HK$184.18M	―	-17.97%	―	-0.02%	13.79%
1559	40 Underperform	HK$149.53M	―	-54.25%	―	-51.67%	36.70%

Kwan On Holdings Ltd. Corporate Events

Kwan On Holdings Announces 2025 AGM and Key Resolutions

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

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

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

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.