Sheung Yue Group Holdings Limited (1633) AI Stock Analysis

• Market Cap: HK$267.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.63M
• Price to Earnings (P/E): 78.2
• Beta (1Y): -0.99
• 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: 58 Neutral
• Price Target: HK$0.41 ▲(238.33% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is held back primarily by weak financial performance (declining revenue and negative profitability) and an expensive valuation (high P/E). These are partly offset by improved cash generation and a constructive technical trend with price above key moving averages and positive momentum indicators.

Positive Factors

Improved free cash flow

A 124% rise in free cash flow signals materially stronger cash generation versus prior periods. Higher FCF improves ability to fund working capital on projects, absorb contract timing shocks, reduce reliance on external financing, and invest selectively in equipment or bid capacity over the next 2–6 months.

Lower leverage and stable capital structure

A reduced debt-to-equity of 0.40 and 62% equity financing indicate a more conservative balance sheet. This provides financial flexibility to bid on public infrastructure projects, withstand project delays, and avoid distress financing, supporting durable operational continuity and risk management.

Stable business model tied to public infrastructure

Concentration on civil engineering and public infrastructure in Hong Kong means recurring tender pipelines and government-backed demand. This structural demand profile supports medium-term revenue opportunities and contract continuity versus cyclical private developments.

Negative Factors

Declining revenue

A 15% revenue decline is a durable concern for a contractor reliant on scale to cover fixed costs. Sustained top-line contraction reduces bargaining power with subcontractors, pressures margin recovery, and limits the company's ability to rebuild backlog without winning new tenders or diversifying clients.

Negative profitability and margin compression

Negative net and EBIT margins and thin gross margin (7.17%) point to structural margin pressure from competitive tendering, cost overruns, or low contract pricing. Persistent margin weakness undermines retained earnings, erodes resilience to shocks, and limits reinvestment capacity.

Negative return on equity

A negative ROE indicates the business is destroying shareholder value currently. Over time this reflects weak project returns or poor capital allocation, making it harder to justify equity financing and raising questions about management's effectiveness in improving project economics.

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

Financials are mixed but pressured: revenue declined (-15.36%) and profitability weakened with negative net and EBIT margins, offset partly by improved leverage (debt-to-equity 0.40) and strong free-cash-flow growth (124.34%).

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: Negative
• RSI: Negative
• 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 0.19, below the 50-day MA of 0.17, and above the 200-day MA of 0.10, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 86.98 is Negative, neither overbought nor oversold. The STOCH value of 78.54 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%
1633	58 Neutral	HK$267.05M	78.17	-5.72%	―	-16.89%	-1700.00%
8423	56 Neutral	HK$36.00M	-0.50	-32.77%	―	-1.68%	-417.79%
2113	44 Neutral	HK$52.31M	-10.79	-16.43%	―	-23.73%	―
8445	38 Underperform	HK$41.46M	-3.57	-17.44%	―	-41.79%	19.85%