Shun Wo Group Holdings Ltd. (1591) AI Stock Analysis

• Market Cap: HK$74.13M
• Dividend Yield: N/A
• Average Volume (3M): 989.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.64
• Revenue Growth: 11.27%
• EPS Growth: -1272.22%
• Country: HK
• Employees: 59
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.04
• Shares Outstanding: 533,333,300
• 10 Day Avg. Volume: 2,452,600
• 30 Day Avg. Volume: 989,066
• PEG Ratio: 0.10
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.38
• P/FCF Ratio: -5.07
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: HK$0.15 ▲(6.43% Upside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 01/15/26

The score is primarily held back by weak financial performance quality—2025 losses and sharply negative operating/free cash flow—despite a conservatively financed balance sheet. Technicals add only modest support given mixed trend signals, and valuation remains pressured by loss-making results and no provided dividend yield.

Positive Factors

Conservative balance sheet

The balance sheet's very low debt and sizeable equity base reduce refinancing and leverage risk typical in construction cycles. This durability provides a buffer against project delays or cost overruns, preserving strategic optionality to pursue contracts or withstand downturns without immediate capital raises.

Historic revenue growth trend

Consistent top-line growth into 2023–2024 (2024 up ~6.6% YoY) shows the company can win work and expand revenue. Sustained revenue momentum supports scale advantages, backlog replenishment and longer-term recovery potential if operational execution and margins stabilize.

Prior cash generation capability

Strong operating and free cash flow in 2024 that broadly tracked earnings demonstrates historical ability to convert profits into cash. This implies management and operations can generate liquidity when margins are healthy, supporting investment and reducing the need for costly external financing.

Negative Factors

Profitability volatility

The swing from healthy 2024 profitability (net margin ~11.8%) to losses in 2025 highlights earnings inconsistency. Such volatility signals execution and contract-margin risk, making future return on equity and predictable earnings unreliable for investors and lenders over the medium term.

Deteriorated cash flow

2025's flip to negative operating cash flow and deeply negative free cash flow materially raises funding and liquidity risk. Even with low balance-sheet leverage, sustained cash outflows could force external financing, constrain bidding capacity, or delay capex and working-capital needs.

Gross margin compression

Gross margin compression from 2024 to 2025 indicates rising cost pressure or weakened pricing power on projects. Lower structural margins reduce the firm's ability to rebuild reserves, impair cash conversion and magnify earnings sensitivity to contract execution over time.

Shun Wo Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Shun Wo Group Holdings Limited, an investment holding company, undertakes various foundation works in Hong Kong. It undertakes excavation and lateral support, socketed H-piling and mini-piling, and pile caps construction works. The company was founded in 1995 and is headquartered in Sai Wan Ho, Hong Kong. Shun Wo Group Holdings Limited is a subsidiary of May City Holdings Limited.

How the Company Makes Money

Shun Wo Group Holdings Ltd. generates revenue mainly through its construction and engineering services. The company earns money by undertaking contracts for foundation works and related construction projects. These contracts often involve agreements with private developers and public sector entities for building infrastructure and other construction endeavors. The company's revenue streams are primarily from project-based work, where they bid for and secure contracts that stipulate the scope of work, timelines, and payment terms. Additionally, Shun Wo Group may engage in partnerships or joint ventures with other construction firms to undertake larger or more complex projects, thereby broadening its revenue opportunities. The company's profitability is influenced by factors such as the demand for construction services, the competitive landscape, and the efficiency with which it can complete projects within budget and time constraints.

Shun Wo Group Holdings Ltd. Financial Statement Overview

Summary

Financials are mixed. The balance sheet is a strength with very low leverage and solid equity support, but operating performance is volatile: 2025 swung back to losses with compressed gross margin, and cash generation deteriorated sharply with negative operating cash flow and deeply negative free cash flow.

Income Statement

Results are volatile. Revenue grew strongly into 2023–2024 (2024 up ~6.6% YoY), but 2025 revenue fell sharply versus 2024 despite still showing a positive growth rate in the dataset. Profitability swung from solid in 2024 (net margin ~11.8%, healthy operating margin) back to losses in 2025 (negative operating and net margins), indicating weak earnings consistency and potential project/margin normalization risk. Gross margin has also compressed from 2024 to 2025, reinforcing a less favorable pricing/cost backdrop.

Balance Sheet

The balance sheet looks conservatively financed with very low debt (debt-to-equity near zero across periods) and a sizeable equity base relative to assets, which provides resilience in a cyclical construction environment. However, profitability on equity has been inconsistent—strong in 2023–2024 but negative in 2025—suggesting that while leverage risk is low, returns are not stable and depend heavily on earnings execution.

Cash Flow

Cash generation has deteriorated meaningfully. 2024 showed strong operating cash flow and free cash flow that broadly tracked reported earnings, but 2025 flipped to negative operating cash flow and deeply negative free cash flow, pointing to working-capital strain and/or elevated investment needs. The sharp drop in free cash flow growth and weaker cash conversion increases funding and liquidity risk if the downturn persists, even with low balance-sheet leverage.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	180.94M	166.25M	333.43M	312.91M	242.29M	144.36M
Gross Profit	21.77M	25.34M	60.79M	22.35M	14.66M	18.26M
EBITDA	-10.42M	668.00K	45.75M	23.50M	944.00K	-3.65M
Net Income	-16.89M	-5.69M	39.47M	18.93M	-4.50M	-6.07M
Balance Sheet
Total Assets	180.88M	203.41M	203.41M	169.46M	142.19M	111.29M
Cash, Cash Equivalents and Short-Term Investments	82.06M	85.24M	93.39M	51.18M	22.98M	44.80M
Total Debt	385.00K	606.00K	0.00	0.00	0.00	0.00
Total Liabilities	57.13M	63.39M	57.70M	63.21M	54.87M	19.48M
Stockholders Equity	123.75M	140.02M	145.71M	106.25M	87.32M	91.81M
Cash Flow
Free Cash Flow	-9.98M	-12.30M	46.27M	28.16M	-23.82M	2.97M
Operating Cash Flow	-2.09M	-1.80M	48.90M	37.01M	-21.36M	12.34M
Investing Cash Flow	-6.58M	-6.04M	-541.00K	-6.81M	-454.00K	-11.27M
Financing Cash Flow	-429.00K	-316.00K	0.00	0.00	0.00	-67.00K

Shun Wo Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.14
• 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:1591, the sentiment is Neutral. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.14, and below the 200-day MA of 0.15, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.04 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1591.

Shun Wo Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1637	58 Neutral	HK$164.00M	-5.15	4.40%	―	-40.54%	―
1472	50 Neutral	HK$80.00M	-1.24	-4.84%	―	71.16%	-67.47%
1591	47 Neutral	HK$74.13M	-1.08	-12.80%	―	11.27%	-1272.22%
1718	47 Neutral	HK$121.89M	13.37	-46.48%	―	-0.64%	13.72%
2195	43 Neutral	HK$65.97M	-1.06	-19.64%	―	48.86%	54.49%

Shun Wo Group Holdings Ltd. Corporate Events

Shun Wo Group’s Oversubscribed Rights Issue Raises HK$17.92 Million Net

Shun Wo Group Holdings Ltd., a Hong Kong-listed company incorporated in the Cayman Islands, operates in Hong Kong’s capital markets as an exchange-listed issuer under stock code 1591. The announcement relates to its latest corporate fundraising activity via a rights issue offered to existing shareholders on a non-underwritten basis.

The company’s rights issue of one rights share for every three existing shares became unconditional on 26 January 2026 and was oversubscribed by about 15.7%, with valid acceptances and excess applications totaling roughly 115.7% of the 133.33 million rights shares on offer. Around 43.1% of the rights shares were available for excess applications, which were allocated on a pro rata, “fair and equitable” basis, resulting in approximately 73.3% of excess requests being met, and refunds will be sent for unsuccessful portions. The gross proceeds of about HK$18.67 million, or net HK$17.92 million after expenses, will strengthen the company’s capital base and support its planned uses of funds as previously outlined to shareholders, signaling solid demand from existing investors and potentially reinforcing market confidence in the group’s financial position.

The most recent analyst rating on (HK:1591) stock is a Hold with a HK$0.15 price target. To see the full list of analyst forecasts on Shun Wo Group Holdings Ltd. stock, see the HK:1591 Stock Forecast page.

Shun Wo Group Announces HK$18.67 Million Rights Issue

Shun Wo Group Holdings Ltd. has announced a proposed rights issue to raise up to approximately HK$18.67 million by issuing 133,333,333 Rights Shares at HK$0.14 each. The proceeds are intended for acquiring plant and machinery and general working capital. The rights issue is non-underwritten and available only to qualifying shareholders, with no minimum subscription level required. The company has ensured compliance with relevant listing rules, indicating no significant dilution effect on its share capital.