HKE Holdings Limited (1726) AI Stock Analysis

• Market Cap: HK$1.60B
• Dividend Yield: N/A
• Average Volume (3M): 449.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.08
• Revenue Growth: 37.20%
• EPS Growth: 5.04%
• Country: HK
• Employees: 158
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): -0.04
• Shares Outstanding: 1,077,746,700
• 10 Day Avg. Volume: 491,000
• 30 Day Avg. Volume: 449,072
• 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: HK$1.50
• Price Target Upside: 1.35% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: HK$1.50 ▲(1.35% Upside)

The overall stock score of 53 reflects significant financial challenges, with persistent losses impacting profitability and cash flow. Technical analysis shows moderate positive momentum, but valuation concerns with a negative P/E ratio and no dividend yield weigh heavily on the score. The absence of earnings call data and corporate events limits additional insights.

HKE Holdings Limited Business Overview & Revenue Model

Company Description

HKE Holdings Limited (1726) is a company primarily engaged in the construction and engineering sectors. It offers a range of services including building construction, civil engineering, and related services. The company operates in various markets, providing infrastructure development and project management services to both public and private sector clients.

How the Company Makes Money

HKE Holdings Limited generates revenue through its construction and engineering operations. Its key revenue streams include contracting for building and infrastructure projects, where the company earns income from project fees, construction services, and engineering solutions. The company may also benefit from long-term contracts with governmental bodies and private enterprises, and any strategic partnerships or joint ventures that enhance its project portfolio. The company's earnings are significantly influenced by its ability to secure new projects and maintain efficient project execution within budgetary and timeline constraints.

HKE Holdings Limited Financial Statement Overview

Summary

HKE Holdings Limited faces significant financial challenges, with persistent losses impacting profitability and cash flow. While revenue growth is a positive sign, the company struggles with operational efficiency and cash management. The balance sheet remains relatively stable, with low leverage, but the negative return on equity reflects the need for strategic improvements to enhance financial performance.

Income Statement

The company has shown revenue growth over the years, with a notable increase from 2023 to 2024. However, the profitability metrics are concerning, with persistent negative EBIT and net income, indicating operational challenges. The gross profit margin has improved, but the net profit margin remains negative, reflecting ongoing financial difficulties.

Balance Sheet

The balance sheet shows a strong equity base with a relatively low debt-to-equity ratio, indicating financial stability. However, the company's return on equity is negative due to ongoing losses, which is a significant concern. The equity ratio is healthy, suggesting that the company is not overly leveraged.

Cash Flow

The cash flow statement reveals negative free cash flow and operating cash flow, indicating liquidity issues. The company has managed to maintain cash reserves, but the operating cash flow to net income ratio is unfavorable due to consistent losses. Free cash flow remains negative, highlighting cash management challenges.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	20.71M	18.43M	13.44M	10.05M	10.29M	7.64M
Gross Profit	7.79M	8.84M	4.48M	3.03M	2.57M	1.44M
EBITDA	-13.92M	-11.42M	-14.34M	-10.66M	15.43K	-537.52K
Net Income	-13.39M	-12.65M	-14.53M	-11.27M	252.49K	58.30K
Balance Sheet
Total Assets	36.17M	57.21M	34.76M	33.45M	30.23M	30.42M
Cash, Cash Equivalents and Short-Term Investments	6.25M	15.72M	19.16M	18.93M	23.74M	25.35M
Total Debt	1.44M	693.19K	655.72K	1.36M	2.35K	67.73K
Total Liabilities	16.70M	30.39M	4.71M	5.00M	2.38M	1.93M
Stockholders Equity	19.47M	26.83M	30.06M	28.44M	27.84M	28.49M
Cash Flow
Free Cash Flow	-9.26M	-12.72M	-15.04M	-10.50M	-713.43K	2.28M
Operating Cash Flow	-8.72M	-12.12M	-14.84M	-9.48M	-618.76K	2.30M
Investing Cash Flow	-352.81K	6.88M	-4.62M	-7.95M	-28.16K	314.10K
Financing Cash Flow	-249.29K	8.19M	15.32M	10.62M	―	-93.59K

HKE Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1726, the sentiment is Negative. The current price of 1.48 is below the 20-day moving average (MA) of 1.53, below the 50-day MA of 1.61, and below the 200-day MA of 1.55, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 33.06 is Neutral, neither overbought nor oversold. The STOCH value of 24.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1726.

HKE Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1627	79 Outperform	HK$1.34B	5.86	13.63%	9.09%	44.58%	11.62%
0240	75 Outperform	HK$1.65B	3.56	18.23%	13.46%	13.76%	25.01%
Sector *	63 Neutral	$10.73B	15.32	7.37%	2.01%	2.86%	-14.57%
2236	59 Neutral	HK$2.04B	7.67	9.56%	―	96.63%	―
1726	53 Neutral	HK$1.60B	―	-62.57%	―	37.20%	5.04%
2262	46 Neutral	HK$1.39B	140.96	3.15%	―	9.92%	―
1683	43 Neutral	HK$1.21B	106.67	-8.55%	―	-37.55%	-1727.78%

HKE Holdings Limited Corporate Events

HKE Holdings Announces Executive Director Resignation and Board Committee Changes

HKE Holdings Limited has announced the resignation of Mr. Tsang Wing Fung from his position as an executive director, effective July 23, 2025, to focus on personal commitments. Despite stepping down, Mr. Tsang will remain with the company as a senior consultant. The board expressed gratitude for his contributions. Additionally, changes in the composition of the board’s remuneration and nomination committees were announced, with new members appointed to each committee.

HKE Holdings Limited Announces Board Composition and Roles

HKE Holdings Limited, incorporated in the Cayman Islands, has announced the composition of its board of directors and their respective roles and functions. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the Audit, Remuneration, and Nomination Committees. This announcement provides clarity on the governance structure of HKE Holdings, potentially impacting its operational oversight and strategic decision-making processes.

HKE Holdings Expands Fintech Operations with New Licenses

HKE Holdings Limited announced that its subsidiary, Hong Kong BGE Limited, has been granted licenses by the Securities and Futures Commission to engage in securities dealing, provide automated trading services, and operate a virtual asset trading platform. This development is expected to enhance the company’s financial technology platform business, benefiting the company and its shareholders.