Sheung Yue Group Holdings Limited (1633) AI Stock Analysis

• Market Cap: HK$123.26M
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 78.2
• Beta (1Y): -0.97
• Revenue Growth: -16.89%
• EPS Growth: -1700.00%
• Country: HK
• Employees: 92
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.00
• Shares Outstanding: 684,750,000
• 10 Day Avg. Volume: 4,803,900
• 30 Day Avg. Volume: 1,626,100
• PEG Ratio: 0.01
• Price to Book (P/B): 0.23
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 0.87
• 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: 49 Neutral
• Price Target: HK$0.18 ▲(49.17% Upside)
• Action: Reiterated Date: 03/04/26
• Date: Action: Reiterated 03/04/26

The score is primarily held back by deteriorating revenue and negative profitability (negative net and EBIT margins). Improved balance sheet leverage and strong free cash flow growth provide partial support, while technicals are mixed with weak near-term trend and only modest momentum. Valuation is also a drag due to a negative P/E and no dividend yield data.

Positive Factors

Improved leverage and capital structure

Reduced leverage and a high equity ratio improve financial flexibility and lower financing risk. Over a multi-month horizon this supports the firm’s ability to bid on new contracts, absorb project timing mismatches, and withstand cyclical tender delays without immediate refinancing pressure.

Strong free cash flow generation

Material FCF growth and decent cash conversion indicate the company is increasingly turning operations into cash. This durable cash buffer helps fund working capital for projects, service debt, and finance select capex or bid deposits even while profitability recovers.

Focus on public infrastructure works

Concentration on public infrastructure and government-related civil works provides relatively stable, contract-driven demand and predictable payment profiles. Structural reliance on public projects reduces exposure to volatile private real estate cycles over the medium term.

Negative Factors

Declining revenue

Sustained revenue decline erodes scale and bid competitiveness, making fixed-cost absorption harder and reducing bargaining power with subcontractors and suppliers. Over several months this can impair backlog replenishment and reduce margin recovery potential.

Compressed and negative profitability

Thin gross margins and negative EBIT/net margins point to structural margin pressure from cost overruns, pricing or project mix. Persistently weak operating profitability limits reinvestment, raises the breakeven threshold on new contracts, and weakens long-term return prospects.

Negative return on equity

Negative ROE signals capital is not generating positive returns for shareholders, reflecting operational underperformance. Over the medium term this constrains the company's ability to attract new equity, fund growth organically, or justify capital deployment without strategic changes.

Sheung Yue Group Holdings Limited Business Overview & Revenue Model

Company Description

Sheung Yue Group Holdings Limited, an investment holding company, provides foundation services to private and public sectors in Hong Kong and Macau. The company's foundation works include piling construction, ELS works, pile cap construction, and site formation, as well as provides ancillary services, including loading test and construction machinery leasing services. The company was founded in 1970 and is headquartered in Kowloon, Hong Kong. Sheung Yue Group Holdings Limited is a subsidiary of Creative Elite Global Limited.

How the Company Makes Money

The company primarily makes money by contracting to deliver construction and engineering works and recognizing revenue as it performs under construction contracts. Key revenue streams typically include: (1) main contracting income from civil engineering and building works projects (e.g., public infrastructure and other construction works), where revenue is earned based on agreed contract prices and progress/completion of works; (2) subcontracting or specialist works income, where applicable, from providing specific construction services on larger projects; and (3) variations/claims and other contract-related receipts when project scope changes or additional works are approved under contract terms. Earnings are influenced by the group’s ability to win tenders, manage project execution (cost control on labor, materials, subcontractors, and equipment), and maintain an order book of ongoing projects. Specific information on significant partnerships or customer concentration is null.

Sheung Yue Group Holdings Limited Financial Statement Overview

Summary

Weak profitability and revenue trends drive the score: revenue declined (-15.36%), margins compressed (gross margin 7.17%), and net margin is negative (-3.65%) with negative EBIT. Offsetting factors include improved leverage (debt-to-equity 0.40; equity ratio 62.05%) and much stronger free cash flow growth (+124.34%), which provides some financial resilience.

Income Statement

The company has experienced a decline in revenue with a negative growth rate of -15.36% in the latest year. Gross profit margin has decreased to 7.17%, and net profit margin turned negative at -3.65%, indicating profitability challenges. EBIT margin is also negative, reflecting operational inefficiencies. Despite a positive EBITDA margin of 8.44%, the overall income statement shows declining performance and profitability.

Balance Sheet

The debt-to-equity ratio improved to 0.40, indicating a reduction in leverage compared to previous years. However, return on equity is negative at -5.62%, reflecting poor profitability relative to equity. The equity ratio stands at 62.05%, suggesting a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

The company has shown a significant improvement in free cash flow growth at 124.34%, indicating better cash generation. Operating cash flow to net income ratio is 0.69, suggesting decent cash conversion from earnings. However, the free cash flow to net income ratio of 0.62 indicates that not all earnings are translating into free cash flow.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	264.77M	361.26M	315.14M	213.66M	279.02M
Gross Profit	18.98M	31.25M	34.40M	32.54M	6.83M
EBITDA	22.34M	38.88M	42.96M	34.15M	1.73M
Net Income	-9.65M	4.29M	10.84M	11.19M	-14.47M
Balance Sheet
Total Assets	276.72M	356.32M	311.89M	288.30M	275.69M
Cash, Cash Equivalents and Short-Term Investments	13.11M	17.31M	29.11M	14.34M	21.78M
Total Debt	69.48M	114.43M	97.28M	76.44M	32.63M
Total Liabilities	104.99M	174.93M	134.79M	122.04M	120.63M
Stockholders Equity	171.73M	181.38M	177.10M	166.26M	155.07M
Cash Flow
Free Cash Flow	44.62M	-14.23M	-9.60M	-53.90M	-20.31M
Operating Cash Flow	71.53M	-4.26M	37.18M	-21.85M	9.03M
Investing Cash Flow	-23.45M	-12.00M	-35.52M	-20.76M	-18.29M
Financing Cash Flow	-52.27M	4.46M	13.10M	35.17M	8.00M

Sheung Yue Group Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.12
• 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:1633, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.16, and above the 200-day MA of 0.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 71.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1633.

Sheung Yue Group Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3728	68 Neutral	HK$63.82M	6.49	6.32%	―	46.37%	-22.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8423	56 Neutral	HK$33.60M	-0.50	-28.49%	―	-1.68%	-417.79%
1633	49 Neutral	HK$123.26M	78.17	-5.56%	―	-16.89%	-1700.00%
2113	44 Neutral	HK$52.31M	-10.79	-16.43%	―	-23.73%	―
8445	38 Underperform	HK$42.29M	-3.57	-17.44%	―	-41.79%	19.85%