Lap Kei Engineering (Holdings) Limited (1690) AI Stock Analysis

• Market Cap: HK$89.93M
• Dividend Yield: 16.13%
• Average Volume (3M): 137.67K
• Price to Earnings (P/E): 44.3
• Beta (1Y): -0.02
• Revenue Growth: 28.46%
• EPS Growth: -71.43%
• Country: HK
• Employees: 113
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): 0.00
• Shares Outstanding: 1,450,490,000
• 10 Day Avg. Volume: 52,000
• 30 Day Avg. Volume: 137,666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• 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: 58 Neutral
• Price Target: ―

Lap Kei Engineering's overall stock score reflects its mixed financial performance, characterized by strong revenue growth but inconsistent profitability and cash flow generation. The technical analysis indicates neutral market sentiment with limited momentum. The high P/E ratio suggests overvaluation, further pressured by the lack of dividend yield, making the stock less appealing to income investors. These factors collectively contribute to a moderate overall score, highlighting the need for improved operational efficiency and financial consistency.

Lap Kei Engineering (Holdings) Limited Business Overview & Revenue Model

Company Description

Lap Kei Engineering (Holdings) Limited (1690) is a company based in Hong Kong that specializes in providing comprehensive building services. The company operates primarily in the construction and engineering sectors, offering a wide range of services including electrical, mechanical, ventilation, and air-conditioning engineering works. Lap Kei Engineering is known for its commitment to quality and efficiency, catering to both private and public sector clients.

How the Company Makes Money

Lap Kei Engineering (Holdings) Limited generates revenue through its extensive portfolio of engineering services. The company primarily makes money by undertaking contracts for building services projects, which include designing, installing, and maintaining electrical and mechanical systems in various types of buildings. Key revenue streams come from projects in commercial, residential, and institutional buildings, where the company applies its expertise in electrical and mechanical engineering. Additionally, Lap Kei Engineering might engage in partnerships or collaborations with developers and contractors to enhance project delivery and expand its market reach. The company's earnings are significantly influenced by its ability to secure contracts and maintain long-term relationships with clients in the competitive construction industry.

Lap Kei Engineering (Holdings) Limited Financial Statement Overview

Summary

Lap Kei Engineering demonstrates a mixed financial performance. The company has achieved notable revenue growth but faces challenges in maintaining consistent profitability and cash flow generation. Its debt-free status and strong equity ratio provide financial stability, yet the variability in margins and cash flows indicates areas for improvement in operational efficiency and cash management. The company should focus on enhancing profit margins and optimizing cash flows to ensure sustainable growth.

Income Statement

Lap Kei Engineering shows a mixed performance in its income statement. The company has experienced significant revenue growth over the years, particularly from 2020 to 2021 and from 2023 to 2024. However, the gross profit margin and net profit margin have been inconsistent, indicating some instability in cost management. The EBIT and EBITDA margins have also shown volatility, highlighting potential challenges in operational efficiency.

Balance Sheet

The balance sheet of Lap Kei Engineering is relatively strong with no debt, resulting in a debt-to-equity ratio of zero. The company's equity ratio is healthy, suggesting a solid financial foundation. However, the return on equity (ROE) has shown fluctuations, reflecting varying levels of profitability. The high equity ratio enhances financial stability, but the company needs to improve its consistency in generating returns for shareholders.

Cash Flow

Cash flow analysis reveals some challenges for Lap Kei Engineering. The company has shown volatility in operating cash flow, with negative values in some years, indicating potential issues in cash generation from core operations. Free cash flow has also been inconsistent, affecting the company's ability to fund growth initiatives independently. The operating cash flow to net income ratio suggests a need for improvement in converting profits into cash.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Lap Kei Engineering (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1690, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.06, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.24 is Neutral, neither overbought nor oversold. The STOCH value of -42.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1690.

Lap Kei Engineering (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1316	78 Outperform	HK$15.66B	32.52	3.13%	0.21%	1.31%	67.13%
3316	74 Outperform	HK$6.76B	11.40	36.29%	6.16%	25.93%	8.97%
1690	58 Neutral	HK$89.93M	44.29	1.37%	16.13%	28.46%	-71.43%
Sector *	58 Neutral	HK$14.89B	4.77	-2.78%	5.38%	3.80%	-54.55%
3309	52 Neutral	HK$2.26B	33.92	-7.51%	1.11%	-0.56%	-323.09%
1400	42 Neutral	HK$79.84M	―		―	-21.58%	90.04%

Lap Kei Engineering (Holdings) Limited Corporate Events

Lap Kei Engineering Announces AGM and Strategic Resolutions

Lap Kei Engineering (Holdings) Limited has announced its upcoming annual general meeting (AGM) scheduled for May 14, 2025, in Hong Kong. Key agenda items include the adoption of financial statements for the year ending December 2024, re-election of directors, approval of director remuneration, re-appointment of the auditor, and declaration of a final dividend. Additionally, a resolution will be considered to grant the directors a mandate to issue shares up to 20% of the current issued shares, reflecting the company’s strategic focus on maintaining flexibility in capital management.

Lap Kei Engineering Reports Revenue Growth Amid Profit Decline

Lap Kei Engineering (Holdings) Limited announced its annual financial results for the year ending December 31, 2024, reporting a significant increase in revenue by 28.5% to HK$415.3 million compared to the previous year. Despite the revenue growth, the company’s profit attributable to owners dropped by 71.2% to HK$2.1 million, reflecting increased costs and administrative expenses. The board proposed a final dividend of HK$0.01 per share, marking a notable decision as no dividend was declared in the previous year. This announcement highlights the company’s revenue growth but also underscores challenges in maintaining profitability, impacting stakeholder expectations and future strategic decisions.

Lap Kei Engineering Declares Final Dividend for 2024

Lap Kei Engineering (Holdings) Limited has announced a final ordinary cash dividend of HKD 0.01 per share for the financial year ending December 31, 2024. The dividend will be paid on June 18, 2025, following shareholder approval on May 14, 2025. This announcement reflects the company’s commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

Lap Kei Engineering Schedules Board Meeting to Approve Annual Results

Lap Kei Engineering (Holdings) Limited has announced that its board of directors will meet on March 26, 2025, to consider and approve the company’s annual results for the year ending December 31, 2024. The meeting will also discuss the publication of these results and the potential payment of a final dividend, which could impact the company’s financial standing and shareholder returns.