CR Construction Group Holdings Limited (1582) AI Stock Analysis

• Market Cap: HK$167.50M
• Dividend Yield: 9.85%
• Average Volume (3M): 608.92K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.17
• Revenue Growth: 27.42%
• EPS Growth: -32.34%
• Country: HK
• Employees: 1,015
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.05
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 403,750
• 30 Day Avg. Volume: 608,916
• PEG Ratio: -0.20
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.04
• P/FCF Ratio: 0.96
• 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: 61 Neutral
• Price Target: HK$0.50 ▲(47.06% Upside)

The overall stock score is primarily influenced by the company's stable financial position and attractive valuation, with a low P/E ratio and high dividend yield. However, technical indicators suggest bearish momentum, and profitability and cash flow challenges weigh on the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for construction services and effective project execution, supporting long-term business expansion.

Balance Sheet Stability

A stable balance sheet with manageable debt levels provides financial flexibility and resilience against economic fluctuations.

Gross Profit Margin Improvement

Improved gross profit margins suggest better cost management and pricing power, enhancing profitability potential over time.

Negative Factors

Profitability Pressures

Declining net profit margins indicate challenges in maintaining profitability, which could impact long-term financial health.

Cash Flow Challenges

Negative cash flow trends highlight difficulties in cash generation, potentially limiting investment in growth and operations.

Declining Return on Equity

A decline in ROE suggests reduced efficiency in generating profits from equity, which may affect investor confidence and capital returns.

CR Construction Group Holdings Limited Business Overview & Revenue Model

Company Description

CR Construction Group Holdings Limited (1582) is a prominent player in the construction and engineering sector, specializing in a wide range of services including civil engineering, building construction, and project management. The company operates primarily in the infrastructure development market, catering to both public and private sector clients. With a focus on delivering high-quality construction solutions, CR Construction Group Holdings is involved in various projects such as residential buildings, commercial properties, and large-scale infrastructure initiatives.

How the Company Makes Money

The company generates revenue through multiple streams including contract-based construction services, project management fees, and maintenance contracts. Its primary revenue model is based on winning bids for construction projects, which are awarded through competitive tender processes. Additionally, CR Construction Group Holdings may engage in joint ventures or partnerships with other construction firms or government entities to undertake larger projects, thereby expanding its project portfolio and revenue potential. The company also benefits from repeat business with existing clients and government contracts, which contribute to a steady income flow.

CR Construction Group Holdings Limited Financial Statement Overview

Summary

CR Construction Group Holdings Limited demonstrates stability in its balance sheet and maintains consistent revenue, but faces profitability pressures and cash flow challenges. Improvements in cash flow management and profitability margins would enhance financial health.

Income Statement

The company has shown a consistent revenue stream with a minor growth in gross profit margin from 5.2% to 5.8% in the latest year. However, the net profit margin declined from 1.3% to 0.9%, indicating pressure on profitability. Despite the decline, EBIT and EBITDA margins remained relatively stable.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 1.01. Return on Equity (ROE) has decreased to 8.2% from 11.6% last year, aligning with the net income decline. The equity ratio is at 13.5%, suggesting a solid equity base relative to total assets.

Cash Flow

Cash flow presents challenges with operating cash flow being zero and free cash flow showing negative trends in past periods. The lack of positive free cash flow growth is a concern. The company needs to improve its cash generation capabilities to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.86B	6.07B	5.45B	6.41B	4.88B	4.65B
Gross Profit	460.59M	353.23M	283.02M	256.50M	177.01M	211.16M
EBITDA	146.08M	180.86M	171.04M	136.50M	97.69M	137.36M
Net Income	42.15M	53.72M	71.89M	72.11M	48.56M	89.14M
Balance Sheet
Total Assets	5.14B	4.86B	4.13B	3.57B	2.61B	2.39B
Cash, Cash Equivalents and Short-Term Investments	238.58M	330.80M	235.97M	158.15M	69.14M	121.85M
Total Debt	976.21M	664.68M	727.63M	263.91M	209.76M	245.84M
Total Liabilities	4.41B	4.18B	3.50B	2.74B	2.05B	1.81B
Stockholders Equity	698.75M	655.68M	619.39M	569.09M	557.40M	558.59M
Cash Flow
Free Cash Flow	-144.27M	244.01M	-107.02M	45.90M	-60.13M	-82.03M
Operating Cash Flow	-127.43M	250.97M	-98.71M	57.84M	-51.34M	-73.99M
Investing Cash Flow	-41.34M	-5.58M	27.60M	-20.91M	-28.68M	-6.63M
Financing Cash Flow	26.49M	-147.18M	148.79M	-11.14M	22.76M	65.02M

CR Construction Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1582, the sentiment is Neutral. The current price of 0.34 is below the 20-day moving average (MA) of 0.35, below the 50-day MA of 0.36, and below the 200-day MA of 0.40, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.43 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1582.

CR Construction Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0385	72 Outperform	HK$229.04M	4.59	2.37%	5.43%	9.48%	-53.42%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$192.00M	7.89	6.66%	15.38%	13.59%	-12.52%
1582	61 Neutral	HK$167.50M	3.97	6.32%	9.85%	27.42%	-32.34%
2863	54 Neutral	HK$243.38M	-57.94	-1.47%	8.22%	0.94%	82.30%
1547	45 Neutral	HK$180.00M	21.43	5.64%	2.76%	27.88%	1.69%

CR Construction Group Holdings Limited Corporate Events

CR Construction Secures HKD100 Million Facility to Enhance Operations

CR Construction Group Holdings Limited announced that its wholly-owned subsidiary, CR Construction Company Limited, has secured a HKD100,000,000 facility from a bank to support the Group’s general corporate funding needs. The agreement includes specific performance obligations, ensuring Zhejiang Construction Investment Group Co., Ltd remains a major shareholder, indirectly holding a significant portion of the company’s shares. This financial move is expected to bolster the company’s operational capabilities and maintain its market position.

CR Construction Group Delays Circular Dispatch for Transaction Renewal

CR Construction Group Holdings Limited announced a further delay in the dispatch of a circular related to the renewal of a continuing connected transaction with Zhejiang Construction. The circular, initially expected by 28 November 2025, will now be dispatched on or before 8 December 2025 due to the need for additional time to prepare and finalize the necessary information. This delay may impact stakeholders awaiting details on the Framework Agreement and the Proposed Annual Caps.

CR Construction Group Holdings Limited Announces Board and Committee Structure

CR Construction Group Holdings Limited has announced its current board of directors as of November 30, 2025, which includes both executive and independent non-executive directors. The company has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned as members or chairpersons of these committees. This announcement provides clarity on the governance structure of CR Construction Group Holdings Limited, which is crucial for stakeholders to understand the leadership and decision-making framework within the company.

Leadership Change at CR Construction Group Holdings Limited

CR Construction Group Holdings Limited announced the resignation of Mr. Li Kar Yin as an executive director and authorized representative, effective November 30, 2025, after more than 30 years of service. Mr. Li’s departure is amicable, with no disagreements reported. Mr. Yang Haojiang has been appointed as the new authorized representative, ensuring continuity in the company’s leadership.

CR Construction Group Announces Auditor Change to KPMG

CR Construction Group Holdings Limited has announced a change in its auditor due to regulatory restrictions on the duration of audit services provided to state-owned enterprises. Ernst & Young will resign, and KPMG will take over as the new auditor effective 18 November 2025. The transition is expected to have no significant impact on the company’s financial reporting for the year ending 31 December 2025. The decision to appoint KPMG was based on their industry expertise, technical competence, and familiarity with Hong Kong’s financial regulations, which is seen as beneficial for the company and its stakeholders.

CR Construction Group Delays Circular Dispatch for Connected Transaction

CR Construction Group Holdings Limited announced a delay in the dispatch of a circular related to the renewal of a continuing connected transaction with Zhejiang Construction. The circular, which includes details of the Framework Agreement and Proposed Annual Caps, was initially expected to be sent to shareholders by November 10, 2025, but will now be postponed to on or before November 28, 2025, to allow additional time for finalizing the necessary information.

CR Construction Group Renews Key Framework Agreement with Zhejiang Construction

CR Construction Group Holdings Limited has entered into a renewed Framework Agreement with Zhejiang Construction to continue their mutual supply of products and services until December 2028. This agreement, which involves significant transactions exceeding 5% of applicable percentage ratios, is classified as a non-exempt continuing connected transaction under Hong Kong’s Listing Rules, requiring independent shareholder approval.

CR Construction Group Announces Board Changes

CR Construction Group Holdings Limited has announced significant changes in its board of directors, appointing Mr. Jiang Wen as an executive director and re-designating Mr. Yang Haojiang from a non-executive to an executive director, effective from September 29, 2025. These changes are expected to bring experienced leadership to the company, potentially impacting its operations and strategic direction positively, given Mr. Jiang’s extensive experience in the construction industry.

CR Construction Group Announces Board Composition and Committee Roles

CR Construction Group Holdings Limited has announced the current composition of its board of directors as of September 29, 2025. The board includes both executive and independent non-executive directors, with Mr. Zhang Guanhua serving as Chairman. The company has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned roles within these committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership and oversight mechanisms in place.