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

• Market Cap: HK$70.93M
• Dividend Yield: N/A
• Average Volume (3M): 989.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• 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

Very low leverage with a sizeable equity base gives durable financial resilience in a cyclical construction industry. It lowers default and refinancing risk, preserves capacity to absorb project setbacks, and provides flexibility to deploy capital into selective bids or repairs without relying on costly external debt.

Multi-year revenue growth trend

Sustained top-line growth through 2023–2024 indicates the company can win contracts and scale activity. That historical traction suggests an underlying market position and backlog capability which, if execution stabilizes, supports durable recovery in revenues and utilization over the next several quarters.

Proven cash conversion in 2024

Prior close alignment of earnings and cashflow demonstrates the business can generate self-funded operations when margins are healthy. This historical cash conversion is a structural strength: it shows operational processes and working-capital management can support funding of capex and projects without persistent external financing, if profitability resumes.

Negative Factors

Return to losses in 2025

A full-year swing into losses signals structural margin pressure or project execution failures. Persistent negative margins erode equity and limit the firm's ability to reinvest in growth, raising the risk that recovery will require prolonged margin rehabilitation, cost restructuring, or renegotiation of contract terms.

Sharp cashflow deterioration

Operating and free cashflow collapsing increases durable funding risk even with low debt. Negative cashflows force reliance on external financing or asset measures to sustain operations and bid on contracts, reducing financial flexibility and potentially increasing the cost of capital or diluting shareholders over the medium term.

Inconsistent returns and earnings

Volatile ROE and uneven profitability make long-term planning and capital allocation difficult. Inconsistent returns raise execution risk and weaken the company’s ability to demonstrate sustainable profitability to stakeholders, increasing uncertainty about future margins and the durability of any operational improvements.

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: Negative
• Last Price: 0.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.14 is above the 20-day moving average (MA) of 0.13, above the 50-day MA of 0.14, and below the 200-day MA of 0.15, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.73 is Neutral, neither overbought nor oversold. The STOCH value of 23.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	63 Neutral	HK$180.00M	-5.15	4.40%	―	-40.54%	―
1472	50 Neutral	HK$81.00M	-1.24	-4.84%	―	71.16%	-67.47%
1718	50 Neutral	HK$121.89M	13.37	-61.28%	―	-0.64%	13.72%
1591	47 Neutral	HK$70.93M	-1.08	-12.80%	―	11.27%	-1272.22%
2195	43 Neutral	HK$65.12M	-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.