Able Engineering Holdings Ltd. (1627) AI Stock Analysis

• Market Cap: HK$1.38B
• Dividend Yield: 8.96%
• Average Volume (3M): 645.40K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.19
• Revenue Growth: 26.57%
• EPS Growth: -2.39%
• Country: HK
• Employees: 560
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.05
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 277,200
• 30 Day Avg. Volume: 645,399
• 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: 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: 80 Outperform
• Price Target: HK$1.00 ▲(47.06% Upside)

Able Engineering Holdings Ltd. receives a strong overall score due to its robust financial performance, particularly in revenue growth and leverage improvement. The technical analysis supports a positive trend, and the valuation metrics suggest the stock is undervalued with a high dividend yield, making it an attractive investment opportunity.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a successful expansion in its market reach and a solid demand for its services, which is a positive indicator for long-term business sustainability.

Leverage Improvement

Reducing leverage enhances financial stability and flexibility, allowing the company to better manage economic fluctuations and invest in growth opportunities.

Gross Profit Margin Improvement

Improved gross profit margins suggest better cost management and pricing strategies, contributing to stronger profitability and competitive positioning over time.

Negative Factors

Net Profit Margin Decline

A decline in net profit margin indicates pressure on overall profitability, which could affect the company's ability to reinvest in growth and maintain competitive advantages.

Free Cash Flow Decline

A significant decline in free cash flow can constrain the company's capacity to fund new projects and distribute returns to shareholders, impacting long-term growth prospects.

Cash Conversion Efficiency

Low cash conversion efficiency suggests challenges in turning income into cash, which may limit the company's operational flexibility and ability to respond to market changes.

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 generates revenue through multiple channels, primarily by offering engineering and construction services on a contractual basis. The company's revenue model is largely project-based, where it earns income from contracts for the design, installation, and maintenance of electrical and mechanical systems in residential, commercial, and industrial projects. Key revenue streams include service fees for ongoing maintenance contracts, project management services, and consultancy fees. Additionally, the company may benefit from partnerships with construction firms and property developers, which can lead to long-term contracts and steady revenue flow. Factors contributing to its earnings include market demand for engineering services, the company's reputation for quality, and its ability to secure competitive contracts in a growing construction market.

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	8.13B	7.97B	5.51B	5.08B	5.58B	3.71B
Gross Profit	601.41M	582.50M	323.54M	269.30M	209.77M	116.58M
EBITDA	703.65M	475.82M	358.90M	302.22M	246.52M	135.03M
Net Income	236.91M	228.56M	204.89M	174.07M	122.88M	94.70M
Balance Sheet
Total Assets	5.31B	5.28B	4.91B	4.63B	3.93B	3.06B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.74B	2.10B	1.73B	1.52B	1.01B
Total Debt	11.94M	97.54M	496.95M	619.69M	715.68M	852.67M
Total Liabilities	3.58B	3.54B	3.29B	3.11B	2.50B	1.71B
Stockholders Equity	1.73B	1.74B	1.62B	1.52B	1.42B	1.35B
Cash Flow
Free Cash Flow	-62.87M	298.77M	610.59M	576.35M	735.14M	-400.92M
Operating Cash Flow	227.79M	652.74M	748.79M	770.21M	793.75M	182.03M
Investing Cash Flow	-39.65M	-89.01M	-393.20M	-374.40M	-65.59M	-574.22M
Financing Cash Flow	-734.93M	-651.25M	-227.86M	-186.71M	-225.42M	680.48M

Able Engineering Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1627, the sentiment is Negative. The current price of 0.68 is below the 20-day moving average (MA) of 0.73, below the 50-day MA of 0.73, and above the 200-day MA of 0.63, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 29.80 is Positive, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$1.38B	5.83	14.15%	8.96%	26.57%	-2.39%
1977	79 Outperform	HK$1.29B	9.59	6.02%	5.00%	-7.60%	37.99%
0240	75 Outperform	HK$1.71B	3.69	18.23%	12.68%	13.76%	25.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2236	52 Neutral	HK$1.57B	5.94	9.56%	―	96.63%	―
1499	41 Neutral	HK$1.04B	-85.00	-7.49%	―	-16.73%	65.63%
1683	39 Underperform	HK$783.82M	-14.51	-8.55%	―	-37.55%	-1727.78%

Able Engineering Holdings Ltd. Corporate Events

Able Engineering Holdings Ltd. Reports Strong Interim Financial Results

Able Engineering Holdings Ltd. reported its unaudited interim financial results for the six months ending September 30, 2025, showcasing a revenue increase to HK$4,111,772,000 from HK$3,946,807,000 in the previous year. The company’s profit for the period rose to HK$108,236,000, reflecting a strong performance despite a slight decrease in other income and gains. The total comprehensive income attributable to owners increased to HK$114,212,000, indicating positive growth and stability in its financial operations.

Able Engineering Holdings to Review Interim Results and Dividend Proposal

Able Engineering Holdings Ltd. has announced that its board of directors will meet on November 28, 2025, to consider and approve the unaudited consolidated interim results for the six months ended September 30, 2025. The board will also discuss the recommendation of an interim dividend, which could impact the company’s financial strategy and shareholder returns.