Able Engineering Holdings Ltd. (1627) AI Stock Analysis

• Market Cap: HK$1.46B
• Dividend Yield: 8.22%
• Average Volume (3M): 940.40K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.22
• Revenue Growth: 44.58%
• EPS Growth: 11.62%
• Country: HK
• Employees: 560
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 354,000
• 30 Day Avg. Volume: 940,400
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$1.00 ▲(44.93% 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.

Able Engineering Holdings Ltd. Business Overview & Revenue Model

Company Description

Able Engineering Holdings Ltd. (1627) is a Hong Kong-based company that specializes in engineering and construction services, particularly in the areas of civil engineering, building construction, and infrastructure development. The company provides a comprehensive range of services including project management, design and build solutions, and maintenance services, catering primarily to public and private sector clients. With a focus on delivering high-quality engineering solutions, Able Engineering plays a pivotal role in various construction projects across the region.

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: 0.69
• 50DMA: Positive
• 100DMA: Positive
• 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:1627, the sentiment is Positive. The current price of 0.69 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.69, and above the 200-day MA of 0.59, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.33 is Neutral, neither overbought nor oversold. The STOCH value of 73.81 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	―	HK$1.46B	6.39	13.63%	8.22%	44.58%	11.62%
1977	―	HK$1.29B	9.59	6.02%	5.00%	-7.60%	37.99%
0240	―	HK$1.70B	3.66	18.23%	12.15%	13.76%	25.01%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2236	―	HK$1.89B	6.99	9.56%	―	96.63%	―
1499	―	HK$1.42B	-91.38	-10.00%	―	25.70%	61.33%
1683	―	HK$1.03B	―	-8.55%	―	-37.55%	-1727.78%

Able Engineering Holdings Ltd. Corporate Events

Able Engineering Holdings Ltd. Updates Board Composition and Committee Roles

Able Engineering Holdings Ltd. has announced the composition of its Board of Directors and detailed the roles and functions of each member. This update includes the establishment of three key committees: Audit, Remuneration, and Nomination, which are integral to the company’s governance structure. The announcement highlights the company’s commitment to maintaining a robust governance framework, potentially enhancing its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:1627) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Able Engineering Holdings Ltd. stock, see the HK:1627 Stock Forecast page.

Able Engineering Announces Board and Committee Changes

Able Engineering Holdings Ltd. announced changes in its board and board committees, effective from September 1, 2025. Dr. Li Yok Sheung and Ms. Mak Suk Hing will retire as Independent Non-Executive Directors (INEDs) and from their committee roles, while Ar Prof. Fung Yin Suen Ada will be appointed as an INED and join the Audit, Remuneration, and Nomination Committees. These changes reflect the company’s adherence to corporate governance principles regarding term limits and aim to bring new expertise to the board, potentially impacting the company’s strategic direction and stakeholder relations.

The most recent analyst rating on (HK:1627) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Able Engineering Holdings Ltd. stock, see the HK:1627 Stock Forecast page.

Able Engineering Holdings Ltd. Updates Audit Committee Terms

Able Engineering Holdings Ltd. has revised the terms of reference for its Audit Committee, which was initially established in 2017. The committee is composed of non-executive directors, with a majority being independent, and is responsible for overseeing the company’s auditing processes. These changes are aimed at enhancing the governance framework and ensuring compliance with the Hong Kong Stock Exchange’s listing rules, potentially strengthening stakeholder confidence in the company’s financial oversight.

The most recent analyst rating on (HK:1627) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Able Engineering Holdings Ltd. stock, see the HK:1627 Stock Forecast page.

Able Engineering Holdings Ltd. Updates Nomination Committee Terms

Able Engineering Holdings Ltd. has revised the terms of reference for its Nomination Committee, which was originally established in 2017. The committee, responsible for nominating board directors, must consist of at least three members, with a majority being independent non-executive directors, and include at least one director of a different gender. This revision aims to ensure compliance with the latest Listing Rules and enhance governance practices, potentially impacting the company’s operational transparency and stakeholder confidence.

The most recent analyst rating on (HK:1627) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Able Engineering Holdings Ltd. stock, see the HK:1627 Stock Forecast page.

Able Engineering Holdings Ltd. AGM Resolutions Approved

Able Engineering Holdings Ltd. announced that all resolutions proposed at its annual general meeting on August 28, 2025, were approved by shareholders via a poll. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and granting of mandates for share allotment and buyback. The approval of these resolutions reflects strong shareholder support and positions the company for continued operational and strategic initiatives.

The most recent analyst rating on (HK:1627) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Able Engineering Holdings Ltd. stock, see the HK:1627 Stock Forecast page.