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

• Market Cap: HK$60.00M
• Dividend Yield: N/A
• Average Volume (3M): 102.80K
• Price to Earnings (P/E): 41.7
• Beta (1Y): 0.60
• Revenue Growth: -61.23%
• EPS Growth: -95.96%
• Country: HK
• Employees: 59
• Sector: Industrials
• Sector Strength: 83
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 101,000
• 30 Day Avg. Volume: 102,800
• PEG Ratio: -0.10
• Price to Book (P/B): 9.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 35.52
• 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

• Rating: 66 Neutral
• Price Target: ―

Shun Wo Group Holdings Ltd. is well-positioned financially, with a strong balance sheet, no debt, and improving profitability. However, the stock's high P/E ratio suggests it may be overvalued, and technical indicators show mixed signals. The absence of significant earnings call insights or corporate events leaves the stock's short-term direction unclear.

Shun Wo Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Shun Wo Group Holdings Ltd. (1591) is a company engaged in the construction and engineering sectors, primarily operating in Hong Kong. The company specializes in providing foundation works and ancillary services, which include site formation, piling works, and other construction-related activities. Shun Wo Group aims to deliver high-quality and reliable services to its clients, contributing to infrastructure development in the region.

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

Shun Wo Group Holdings Ltd. demonstrates a solid financial position with notable improvements in profitability and cash flow generation. The company exhibits a strong balance sheet with no debt, high equity, and a commendable return on equity. Positive trends in revenue growth and profit margins reflect effective management and operational efficiency. Potential risks are minimized due to the absence of leverage, positioning the company well for future growth and stability.

Income Statement

Shun Wo Group Holdings Ltd. has shown a strong recovery in its income statement over the years. The gross profit margin improved significantly from prior years, reaching approximately 17.7% in the latest annual report. Net profit margin also increased to about 11.8%, reflecting enhanced profitability. Revenue growth rate was robust at 6.6% from the previous year, indicating a positive growth trajectory. The company also achieved a healthy EBIT margin of 11.7% and an EBITDA margin of 13.7%, demonstrating operational efficiency. Overall, the financial trajectory is positive with steady improvements in profitability metrics.

Balance Sheet

The balance sheet of Shun Wo Group Holdings Ltd. is strong with no debt, resulting in a debt-to-equity ratio of 0. The company maintains a favorable equity ratio of 71.6%, indicating a solid capital structure. Return on Equity (ROE) is impressive at 27.1%, highlighting efficient utilization of equity to generate profits. High stockholders' equity compared to total assets reflects financial stability and reduced financial risk.

Cash Flow

The cash flow statement shows promising trends, with the free cash flow growing substantially by 64.3% from the previous year, showcasing effective cash management. The operating cash flow to net income ratio is 1.24, indicating that the company is generating ample cash from its operations relative to its net income. The free cash flow to net income ratio is also strong at 1.17, reflecting robust liquidity and cash conversion capability. Despite previous years of negative cash flow, the company has significantly improved its cash generation capacity.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
162.62M	333.43M	312.91M	242.29M	144.36M	134.39M
	Gross Profit
21.54M	60.79M	22.35M	14.66M	18.26M	-8.71M
	EBIT
1.02M	38.94M	17.07M	-6.03M	-11.37M	-31.25M
	EBITDA
5.89M	45.16M	23.50M	944.00K	1.28M	-24.07M
	Net Income Common Stockholders
1.46M	39.47M	18.93M	-4.50M	-6.07M	-33.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
68.86M	93.39M	51.18M	22.98M	44.80M	41.79M
	Total Assets
161.69M	203.41M	169.46M	142.19M	111.29M	119.71M
	Total Debt
0.00	0.00	0.00	0.00	0.00	67.00K
	Net Debt
-66.04M	-93.39M	-51.18M	-22.98M	-44.80M	-39.45M
	Total Liabilities
30.75M	57.70M	63.21M	54.87M	19.48M	21.83M
	Stockholders Equity
130.94M	145.71M	106.25M	87.32M	91.81M	97.88M
Cash Flow		Free Cash Flow
15.48M	46.27M	28.16M	-23.82M	2.97M	-25.99M
	Operating Cash Flow
23.82M	48.90M	37.01M	-21.36M	12.34M	-14.33M
	Investing Cash Flow
-5.42M	-541.00K	-6.81M	-454.00K	-11.27M	-8.83M
	Financing Cash Flow
-79.00K	0.00	0.00	0.00	-67.00K	-1.08M

Shun Wo Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.15
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1591, the sentiment is Positive. The current price of 0.15 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.15, and below the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 63.24 is Neutral, neither overbought nor oversold. The STOCH value of 62.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1995	68 Neutral	HK$3.51B	6.79	9.70%	6.58%	2.68%	8.49%
1591	66 Neutral	HK$60.00M	41.67	1.04%	―	-61.23%	-95.96%
Sector *	66 Neutral	$4.46B	12.11	5.38%	5.02%	4.17%	-11.82%
8452	56 Neutral	HK$140.14M	26.55	-1.70%	―	91.80%	―
1616	52 Neutral	HK$73.15M	―	-21.00%	―	-29.79%	-146.84%
6158	33 Underperform	HK$174.71M	―		―	-15.39%	19.69%