Want to see HK:1586 full AI Analyst Report?
Top Page
China Leon Inspection Holding Limited
(1586)
Select Model
Select Model
Rating:52Neutral
Price Target:
HK$1.50
▼(-35.90% Downside)
Action:Reiterated
Date:06/03/26
The score is primarily held back by weaker 2025 fundamentals—margin compression, higher leverage, and especially a sharp decline in operating cash flow with negative free cash flow. Technicals are mixed with some near-term support but a still-weak longer-term trend, while valuation (P/E ~23.3) provides only moderate support without a dividend yield.
Positive Factors
Essential/Recurring Service Demand
The company provides inspection, testing and certification services that are mission-critical for product compliance and supply-chain quality. This creates durable, repeatable demand from manufacturers, traders and brand owners as regulations and buyer standards persist.
Negative Factors
Margin Compression
A sharp decline in net margin more than halves profitability, reducing internal funding for growth and making the business less resilient to cost or pricing shocks. Sustained lower margins damage return generation and weaken the company's ability to reinvest without external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Essential/Recurring Service Demand
The company provides inspection, testing and certification services that are mission-critical for product compliance and supply-chain quality. This creates durable, repeatable demand from manufacturers, traders and brand owners as regulations and buyer standards persist.
Read all positive factors
China Leon Inspection Holding Limited (1586) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.04B
Dividend Yield1.84%
Average Volume (3M)86.48K
Price to Earnings (P/E)25.1
Beta (1Y)0.06
Revenue Growth6.18%
EPS Growth-54.95%
CountryHK
Employees3,374
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.06
Shares Outstanding586,632,800
10 Day Avg. Volume49,086
30 Day Avg. Volume86,481
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)2.81
Price to Sales (P/S)0.94
P/FCF Ratio-64.34
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.31
Revenue Forecast (FY)HK$1.87B
China Leon Inspection Holding Limited Business Overview & Revenue Model
Company Description
China Leon Inspection Holding Limited operates as an investment holding entity, providing comprehensive inspection, testing, and certification (ITC) solutions, with a primary focus on the energy and commodity industries. Its operational reach exte...
How the Company Makes Money
null...
China Leon Inspection Holding Limited Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.21B | 1.19B | 1.01B | 828.94M | 668.17M |
| Gross Profit | 407.87M | 483.83M | 434.79M | 359.46M | 282.66M |
| EBITDA | 127.43M | 225.77M | 207.89M | 176.55M | 130.26M |
| Net Income | 34.80M | 77.70M | 72.49M | 60.94M | 40.67M |
Balance Sheet | |||||
| Total Assets | 917.84M | 897.51M | 810.07M | 667.43M | 543.57M |
| Cash, Cash Equivalents and Short-Term Investments | 223.92M | 289.69M | 242.85M | 203.39M | 150.64M |
| Total Debt | 189.49M | 118.20M | 143.80M | 111.70M | 103.01M |
| Total Liabilities | 361.55M | 282.59M | 294.54M | 239.78M | 195.46M |
| Stockholders Equity | 402.37M | 440.02M | 384.42M | 332.16M | 283.68M |
Cash Flow | |||||
| Free Cash Flow | -17.57M | 128.29M | 84.78M | 111.24M | 73.03M |
| Operating Cash Flow | 49.33M | 191.26M | 158.57M | 154.87M | 109.89M |
| Investing Cash Flow | -119.59M | -57.73M | -108.72M | -41.31M | -51.35M |
| Financing Cash Flow | 3.83M | -87.30M | -36.29M | -32.46M | -15.09M |
China Leon Inspection Holding Limited Technical Analysis
Neutral
2.34
Price Trends
1.58
Positive
1.67
Positive
2.09
Negative
Market Momentum
0.05
Positive
62.40
Neutral
92.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1586, the sentiment is Neutral. The current price of 2.34 is above the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.58, and above the 200-day MA of 2.09, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 62.40 is Neutral, neither overbought nor oversold. The STOCH value of 92.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1586.
China Leon Inspection Holding Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | HK$249.34M | 8.65 | 10.18% | 18.18% | -3.56% | -16.74% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | HK$134.73M | 89.02 | 10.09% | ― | 10.01% | 164.52% | |
52 Neutral | HK$1.04B | 25.09 | 8.61% | 1.84% | 6.18% | -54.95% | |
48 Neutral | HK$747.72M | -12.31 | -2.27% | 13.04% | -7.73% | -82.01% | |
46 Neutral | HK$59.40M | -22.04 | 0.37% | ― | -6.24% | 56.25% | |
44 Neutral | HK$194.40M | -2.26 | -23.30% | 8.60% | -3.83% | -698.65% |
* Industrials Sector Average
HK:1586
China Leon Inspection Holding Limited
1.77
-0.98
-35.64%
HK:0450
Hung Hing Printing Group Limited
0.83
-0.02
-1.78%
HK:1540
Left Field Printing Group Ltd.
0.50
0.10
25.00%
HK:1884
eprint Group Ltd.
0.11
<0.01
0.93%
HK:1975
Sun Hing Printing Holdings Limited
0.41
0.07
21.26%
HK:8448
Universe Printshop Holdings Ltd.
1.35
1.13
500.00%
China Leon Inspection Holding Limited Corporate Events
China Leon Inspection Cuts Debt With Early Convertible Bond Redemption
May 12, 2026
China Leon Inspection Holding Limited has fully redeemed in cash the outstanding principal of its US$3.85 million equivalent convertible bonds, using internal resources of the group rather than external financing. The move reflects the companyR...
China Leon Inspection Sets March 2026 Board Meeting to Approve 2025 Results
Mar 18, 2026
China Leon Inspection Holding Limited has scheduled a board meeting for 30 March 2026 to review and approve the annual results for the year ended 31 December 2025. The board will also consider the potential declaration of a final dividend, a decis...
China Leon Inspection Flags Profit Drop Amid Heavy Investment in AI and Global Expansion
Mar 6, 2026
China Leon Inspection Holding Limited warned that, based on preliminary unaudited figures for 2025, it expects revenue to rise by about 4% to 9% but profit attributable to shareholders to fall by roughly 45% to 55% versus 2024. The company attribu...
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.