Able Engineering Holdings Ltd. (1627) AI Stock Analysis

• Market Cap: HK$1.42B
• Dividend Yield: 7.04%
• Average Volume (3M): 350.80K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.18
• Revenue Growth: 5.06%
• EPS Growth: 30.15%
• Country: HK
• Employees: 560
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 452,400
• 30 Day Avg. Volume: 350,799
• PEG Ratio: 0.10
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.28
• 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: 80 Outperform
• Price Target: ―

Able Engineering Holdings Ltd. demonstrates strong financial health with solid profitability and cash flow, backed by a low leverage balance sheet. The stock's valuation is attractive, with a low P/E ratio and high dividend yield. Technical indicators show upward momentum, though overbought signals suggest caution. Overall, the company is well-positioned in its industry, offering potential for growth and returns.

Able Engineering Holdings Ltd. Business Overview & Revenue Model

Company Description

Able Engineering Holdings Ltd. (1627) is a Hong Kong-based company primarily engaged in the provision of building construction and maintenance services. The company operates across various sectors, including construction, renovation, and maintenance of commercial, residential, and institutional buildings. Able Engineering is known for its comprehensive service offerings that include project management, design, and engineering solutions tailored to the needs of its clients.

How the Company Makes Money

Able Engineering Holdings Ltd. generates revenue through its diverse range of construction and maintenance services. The company's key revenue streams include contracts for building construction, renovation projects, and long-term maintenance agreements. Significant partnerships with government bodies and private sector clients contribute to a steady flow of projects and earnings. The company leverages its expertise and reputation to secure large-scale projects, ensuring a consistent revenue base. Additionally, Able Engineering benefits from economies of scale and efficient project management practices to maintain profitability.

Able Engineering Holdings Ltd. Financial Statement Overview

Summary

Able Engineering Holdings Ltd. presents a strong financial position with consistent revenue growth, solid profitability margins, and robust cash flow generation. The company maintains a healthy balance sheet with low leverage, providing a stable foundation for future growth.

Income Statement

Able Engineering Holdings Ltd. demonstrated strong revenue growth of 8.5% in the latest period. The gross profit margin stands at 5.87%, indicating efficient cost management. The net profit margin is robust at 3.72%, supported by stable EBIT and EBITDA margins of 4.28% and 5.62% respectively. Overall, the company shows solid profitability and growth.

Balance Sheet

The balance sheet of Able Engineering Holdings Ltd. is strong with a low debt-to-equity ratio of 0.31, enhancing financial stability. The equity ratio is healthy at 32.97%, reflecting a solid equity base. The return on equity (ROE) is impressive at 12.66%, indicating efficient use of shareholder funds. The company maintains a strong liquidity position with significant cash reserves.

Cash Flow

Able Engineering Holdings Ltd. exhibits a positive cash flow profile with a free cash flow growth rate of 5.94%, showing effective cash generation. The operating cash flow to net income ratio is strong at 3.65, and the free cash flow to net income ratio is 2.98, indicating healthy cash conversion capabilities.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	6.43B	5.51B	5.08B	5.58B	3.71B	1.55B
Gross Profit	347.84M	323.54M	269.30M	209.77M	116.58M	129.84M
EBITDA	283.61M	358.90M	302.22M	246.52M	135.03M	97.28M
Net Income	242.65M	204.89M	174.07M	122.88M	94.70M	23.98M
Balance Sheet
Total Assets	5.78B	4.91B	4.63B	3.93B	3.06B	1.92B
Cash, Cash Equivalents and Short-Term Investments	2.41B	2.10B	1.73B	1.52B	1.01B	726.64M
Total Debt	510.89M	496.95M	619.69M	715.68M	852.67M	138.13M
Total Liabilities	4.16B	3.29B	3.11B	2.50B	1.71B	666.32M
Stockholders Equity	1.62B	1.62B	1.52B	1.42B	1.35B	1.25B
Cash Flow
Free Cash Flow	702.91M	610.59M	576.35M	735.14M	-400.92M	-219.22M
Operating Cash Flow	876.74M	748.79M	770.21M	793.75M	182.03M	-216.00M
Investing Cash Flow	-428.58M	-393.20M	-374.40M	-65.59M	-574.22M	11.84M
Financing Cash Flow	-256.40M	-227.86M	-186.71M	-225.42M	680.48M	33.96M

Able Engineering Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 0.71 is above the 20-day moving average (MA) of 0.67, above the 50-day MA of 0.64, and above the 200-day MA of 0.54, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.98 is Negative, neither overbought nor oversold. The STOCH value of 75.24 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	80 Outperform	HK$1.42B	6.21	13.63%	7.04%	5.06%	30.15%
3316	74 Outperform	HK$6.37B	10.75	36.29%	7.60%	25.93%	8.97%
1731	74 Outperform	HK$896.00M	3.85	18.71%	8.75%	16.66%	99.90%
Sector *	58 Neutral	HK$14.16B	4.43	-3.01%	7.12%	3.67%	-54.16%
1023	54 Neutral	HK$476.54M	5.10	-1.08%	12.12%	-4.68%	-112.44%
1873	52 Neutral	HK$3.17B	17.77	4.47%	―	-9.75%	―
8277	34 Underperform	HK$26.25M	0.72		―	―	―

Able Engineering Holdings Ltd. Corporate Events

Able Engineering Holdings Announces Board and Committee Structure

Able Engineering Holdings Ltd. has announced the composition of its Board of Directors, which includes both executive and independent non-executive directors. The Board has also established three committees: Audit, Remuneration, and Nomination, with specific directors assigned to each committee. This organizational structure aims to enhance governance and operational efficiency, potentially impacting the company’s strategic direction and stakeholder confidence.

Able Engineering Announces Executive Director Resignation

Able Engineering Holdings Ltd. has announced the resignation of Mr. LAU Chi Fai Daniel as an executive director, effective from April 1, 2025, to allow him more time to focus on the operations of the Group. Mr. LAU will continue to serve as a director for certain subsidiaries, and his departure is amicable with no disagreements reported with the board, which expressed gratitude for his contributions.