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

• Market Cap: HK$60.00M
• Dividend Yield: N/A
• Average Volume (3M): 989.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• 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: 400,000,000
• 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: 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.

Positive Factors

Strong Balance Sheet

A debt-free balance sheet enhances financial stability and flexibility, allowing the company to invest in growth opportunities without financial strain.

Improving Cash Flow

Improved cash flow indicates effective cash management and operational efficiency, supporting sustainable growth and investment capacity.

Profit Margin Expansion

Expanding profit margins demonstrate improved cost management and pricing power, contributing to long-term profitability and shareholder value.

Negative Factors

Revenue Decline

A significant decline in revenue growth can indicate challenges in market demand or competitive pressures, potentially impacting future earnings.

Earnings Decline

A sharp decline in EPS growth reflects potential operational challenges or cost pressures, which could affect investor confidence and stock performance.

High Valuation Concerns

A high valuation without corresponding earnings growth may limit upside potential and increase risk of market correction if growth expectations are not met.

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

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 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: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 0.16 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.15, and above the 200-day MA of 0.16, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.37 is Neutral, neither overbought nor oversold. The STOCH value of 71.67 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
1591	66 Neutral	HK$60.00M	-3.74	-12.77%	―	11.27%	-1272.22%
1637	65 Neutral	HK$83.20M	9.18	4.53%	―	-40.54%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1472	50 Neutral	HK$62.00M	-4.46	-4.84%	―	71.16%	-67.47%
1718	48 Neutral	HK$78.84M	-0.90	-46.48%	―	-0.64%	13.72%
2195	43 Neutral	HK$76.11M	-2.41	-19.00%	―	48.86%	54.49%