China Leon Inspection Holding Limited (1586) AI Stock Analysis

• Market Cap: HK$1.24B
• Dividend Yield: 1.84%
• Average Volume (3M): 86.48K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.07
• Revenue Growth: 2.36%
• EPS Growth: -14.97%
• Country: HK
• Employees: 3,374
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.07
• Shares Outstanding: 586,632,800
• 10 Day Avg. Volume: 49,086
• 30 Day Avg. Volume: 86,481
• PEG Ratio: 0.00
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 9.24
• 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: 57 Neutral
• Price Target: HK$2.50 ▲(18.48% Upside)

The overall stock score is primarily influenced by strong financial performance, which is offset by bearish technical indicators. The valuation is fair but not compelling enough to counteract the negative market momentum. The absence of earnings call insights and corporate events further limits the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for services, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and reducing reliance on external financing.

Leverage Management

Improved leverage management reduces financial risk, enhancing the company's ability to withstand economic fluctuations and invest in growth.

Negative Factors

Profit Margin Pressure

Decreasing profit margins can impact profitability, requiring effective cost control to maintain competitive pricing and financial health.

Earnings Decline

A decline in earnings per share suggests challenges in maintaining profitability, potentially affecting investor confidence and future growth.

Net Profit Margin Decrease

A decreasing net profit margin may signal challenges in managing expenses or pricing power, impacting overall profitability.

China Leon Inspection Holding Limited Business Overview & Revenue Model

Company Description

China Leon Inspection Holding Limited, an investment holding company, provides services on inspection, testing, and certification businesses for the energy and commodity segments in Greater China, Singapore, and internationally. The company offers coal inspection and data, mineral inspection, petrochemical product inspection, climate change and sustainable development, power and energy, and leak detection and repair services, as well as integrated services in the field of ecological environment. It also provides standard and quality control technical services; inspection, testing, appraisal, and inspection technology development services; professional technical services; scientific research, technique, and business services; and environmental testing. China Leon Inspection Holding Limited was founded in 2009 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

The company generates revenue primarily through its inspection and testing services, which are billed on a per-project or contractual basis. Key revenue streams include fees for quality assurance assessments, safety inspections, and compliance testing across different industries. Additionally, China Leon Inspection Holding Limited may engage in long-term contracts with large enterprises or government entities, providing a stable income source. Strategic partnerships with other firms in related sectors can also enhance its service offerings and expand its client base, contributing positively to its earnings.

China Leon Inspection Holding Limited Financial Statement Overview

Summary

China Leon Inspection Holding Limited demonstrates solid financial health with consistent revenue growth and strong cash flow generation. While there is slight pressure on profit margins, the company has improved its leverage position and maintains strong returns on equity. Overall, the financials suggest a stable and growing company with effective cash management.

Income Statement

The company has shown consistent revenue growth over the years, with a 3.1% increase in the most recent year. Gross profit margin has slightly decreased from 42.9% to 40.8%, indicating some pressure on cost management. Net profit margin has also slightly decreased to 6.5%. However, the company maintains a stable EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved from 0.37 to 0.27, indicating better leverage management. Return on equity remains strong at 17.7%, showing effective use of shareholder funds. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow has grown significantly by 41.5%, and the operating cash flow to net income ratio is strong at 0.85, indicating good cash conversion. The free cash flow to net income ratio is also healthy at 0.67, reflecting strong cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.26B	1.12B	944.01M	818.83M	649.90M
Gross Profit	511.90M	515.15M	480.13M	409.37M	346.39M	277.07M
EBITDA	215.55M	240.39M	229.56M	201.06M	159.63M	144.98M
Net Income	72.64M	82.72M	80.05M	69.40M	49.84M	52.45M
Balance Sheet
Total Assets	966.67M	955.61M	894.53M	760.09M	666.13M	522.24M
Cash, Cash Equivalents and Short-Term Investments	243.28M	308.45M	268.18M	231.63M	159.31M	93.73M
Total Debt	153.19M	125.85M	158.80M	127.21M	126.23M	71.66M
Total Liabilities	328.32M	300.88M	325.26M	273.06M	239.53M	198.32M
Stockholders Equity	459.81M	468.50M	424.50M	378.27M	347.64M	297.57M
Cash Flow
Free Cash Flow	69.66M	136.60M	93.62M	126.69M	89.50M	69.96M
Operating Cash Flow	132.66M	203.64M	175.11M	176.37M	134.66M	115.43M
Investing Cash Flow	-22.12M	-61.46M	-120.06M	-47.05M	-62.93M	-39.16M
Financing Cash Flow	-31.06M	-92.96M	-40.07M	-36.97M	-18.50M	-71.64M

China Leon Inspection Holding Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1586, the sentiment is Negative. The current price of 2.11 is below the 20-day moving average (MA) of 2.19, below the 50-day MA of 2.44, and below the 200-day MA of 2.61, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 14.80 is Positive, neither overbought nor oversold. The STOCH value of 29.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1586.

China Leon Inspection Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1540	74 Outperform	HK$211.94M	5.97	12.81%	18.18%	-7.56%	-2.06%
1127	74 Outperform	HK$1.02B	4.90	14.20%	7.86%	-4.03%	8.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1975	63 Neutral	HK$175.20M	-1.98	-20.83%	8.60%	-26.30%	-617.37%
1586	57 Neutral	HK$1.24B	16.43	15.68%	1.84%	2.36%	-14.97%
8385	46 Neutral	HK$19.52M	-0.42	―	―	-92.47%	14.17%