Able Engineering Holdings Ltd. (1627) AI Stock Analysis

• Market Cap: HK$1.46B
• Dividend Yield: 6.94%
• Average Volume (3M): 329.92K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.17
• Revenue Growth: 44.58%
• EPS Growth: 11.62%
• Country: HK
• Employees: 560
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 483,600
• 30 Day Avg. Volume: 329,923
• PEG Ratio: 0.48
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 3.68
• 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: HK$1.00
• Price Target Upside: 38.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 79 Outperform
• Price Target: HK$1.00 ▲(38.89% Upside)

Able Engineering Holdings Ltd. benefits from strong technical indicators and an attractive valuation, suggesting potential for growth and returns. While financial performance shows solid growth, challenges in profitability and cash flow conversion need addressing.

Able Engineering Holdings Ltd. Business Overview & Revenue Model

Company Description

Able Engineering Holdings Limited, an investment holding company, provides building construction, repair, maintenance, and alteration and addition works in Hong Kong. It constructs private and public housing, institutional and private buildings, etc.; offers fitting out and interior works; and provides design and building services. The company is also involved in the property holding activities. It serves government departments and developers or owners. The company was founded in 1976 and is headquartered in Kowloon Tong, Hong Kong. Able Engineering Holdings Limited is a subsidiary of Golden Lux Holdings Limited.

How the Company Makes Money

Able Engineering Holdings Ltd. generates revenue primarily through its engineering and construction projects, which include both civil and building works. The company earns money by bidding on public and private sector contracts, often working on large-scale infrastructure projects, such as roads, bridges, and commercial buildings. Key revenue streams include contract payments for completed projects, consultancy fees for project management services, and ongoing maintenance contracts. Additionally, the company may benefit from partnerships with governmental agencies and private enterprises that require specialized engineering services, which can lead to long-term contracts and stable revenue sources.

Able Engineering Holdings Ltd. Financial Statement Overview

Summary

Able Engineering Holdings Ltd. shows strong revenue growth and improved leverage ratios, indicating a solid financial foundation. However, challenges in profitability margins and cash flow conversion highlight areas for improvement.

Income Statement

Able Engineering Holdings Ltd. has demonstrated strong revenue growth of 24% in the latest year, with improving gross profit margins from 5.87% to 7.31%. However, the net profit margin decreased slightly from 3.72% to 2.87%, indicating some pressure on profitability. The EBIT and EBITDA margins are stable, reflecting efficient operational management. Overall, the income statement shows robust growth with some profitability challenges.

Balance Sheet

The company has significantly reduced its debt-to-equity ratio from 0.31 to 0.06, indicating a strong deleveraging effort. Return on equity improved to 13.17%, showcasing effective use of equity to generate profits. The equity ratio remains healthy, reflecting a solid financial position. The balance sheet is strong, with reduced leverage and improved returns.

Cash Flow

Free cash flow has decreased by 57.5%, which is a concern, although the company maintains a positive operating cash flow. The operating cash flow to net income ratio is 0.19, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.46, indicating some challenges in converting income into free cash flow. Overall, cash flow management shows room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.43B	7.97B	5.51B	5.08B	5.58B	3.71B
Gross Profit	347.84M	582.50M	323.54M	269.30M	209.77M	116.58M
EBITDA	283.61M	475.82M	358.90M	302.22M	246.52M	135.03M
Net Income	242.65M	228.56M	204.89M	174.07M	122.88M	94.70M
Balance Sheet
Total Assets	5.78B	5.28B	4.91B	4.63B	3.93B	3.06B
Cash, Cash Equivalents and Short-Term Investments	2.41B	1.74B	2.10B	1.73B	1.52B	1.01B
Total Debt	510.89M	97.54M	496.95M	619.69M	715.68M	852.67M
Total Liabilities	4.16B	3.54B	3.29B	3.11B	2.50B	1.71B
Stockholders Equity	1.62B	1.74B	1.62B	1.52B	1.42B	1.35B
Cash Flow
Free Cash Flow	702.91M	298.77M	610.59M	576.35M	735.14M	-400.92M
Operating Cash Flow	876.74M	652.74M	748.79M	770.21M	793.75M	182.03M
Investing Cash Flow	-428.58M	-89.01M	-393.20M	-374.40M	-65.59M	-574.22M
Financing Cash Flow	-256.40M	-651.25M	-227.86M	-186.71M	-225.42M	680.48M

Able Engineering Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1627, the sentiment is Positive. The current price of 0.72 is above the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.70, and above the 200-day MA of 0.59, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.95 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1627.

Able Engineering Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1627	79 Outperform	HK$1.46B	6.39	13.63%	6.94%	44.58%	11.62%
0240	75 Outperform	HK$1.55B	3.34	18.23%	7.79%	13.76%	25.01%
1977	73 Outperform	HK$1.23B	9.03	6.26%	4.98%	5.17%	-45.87%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
2236	59 Neutral	HK$1.77B	6.92	9.56%	―	96.63%	―
1499	53 Neutral	HK$2.69B	―	-10.00%	―	25.70%	61.33%
1683	43 Neutral	HK$1.29B	106.67	-9.39%	―	-35.62%	-481.82%

Able Engineering Holdings Ltd. Corporate Events

Able Engineering Holdings Ltd. Announces AGM Details and Key Resolutions

Able Engineering Holdings Limited has announced the details of its upcoming Annual General Meeting (AGM), scheduled for August 28, 2025, in Hong Kong. Key agenda items include the adoption of audited financial statements, the declaration of a final dividend, re-election of directors, and the re-appointment of auditors. Additionally, the company seeks approval for directors to exercise powers to allot and issue additional shares during a specified period.

Able Engineering Holdings Ltd. Reports Strong Annual Financial Results

Able Engineering Holdings Ltd. reported its annual financial results for the year ending March 31, 2025, showing a significant increase in revenue to HK$7,968,813,000 from HK$5,511,537,000 the previous year. Despite an impairment on property, plant, and equipment, the company achieved a profit of HK$228,562,000, up from HK$204,889,000, reflecting strong operational performance and effective cost management, which may positively impact its market positioning and stakeholder confidence.

Able Engineering Announces Final Dividend for FY2025

Able Engineering Holdings Limited announced a final ordinary cash dividend of HKD 0.06 per share for the financial year ending March 31, 2025. The dividend will be paid on September 26, 2025, following shareholder approval on August 28, 2025. This announcement reflects the company’s stable financial performance and commitment to returning value to its shareholders.

Able Engineering Holdings Ltd. Schedules Board Meeting for Annual Results and Dividend Consideration

Able Engineering Holdings Ltd. has announced that its board of directors will meet on June 26, 2025, to consider and approve the company’s consolidated annual results for the year ending March 31, 2025. The meeting will also address the potential recommendation of a final dividend, reflecting the company’s ongoing commitment to shareholder value.