HKE Holdings Limited (1726) AI Stock Analysis

• Market Cap: HK$1.70B
• Dividend Yield: N/A
• Average Volume (3M): 690.94K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: 37.20%
• EPS Growth: 5.04%
• Country: HK
• Employees: 158
• Sector: Industrials
• Sector Strength: 75
• Industry: Engineering & Construction
• EPS (TTM): -0.07
• Shares Outstanding: 1,077,746,700
• 10 Day Avg. Volume: 440,400
• 30 Day Avg. Volume: 690,942
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: -5.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: HK$1.50 ▼(-5.06% Downside)

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 is facing significant financial challenges, with decreasing revenue, negative EBIT and EBITDA margins, and consistent negative free cash flow. Although the debt-to-equity ratio is low, the shrinking equity base and negative return on equity indicate poor financial health.

Income Statement

HKE Holdings Limited has faced decreasing revenue and profitability over recent years, with significant negative EBIT and EBITDA margins indicating operational challenges. The revenue growth has been inconsistent, with a notable increase in the last year but still facing a net loss. This indicates a struggling income statement performance.

Balance Sheet

The balance sheet of HKE Holdings Limited shows a relatively low debt-to-equity ratio, indicating limited leverage. However, the company has experienced a shrinking equity base, and the return on equity has been negative, reflecting poor shareholder returns. The equity ratio indicates a moderate level of financial stability.

Cash Flow

The cash flow statement reveals consistent negative free cash flow, suggesting difficulties in generating cash from operations. The operating cash flow to net income ratio is negative, underscoring issues in cash generation relative to earnings. This highlights significant cash flow challenges.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	18.43M	13.44M	10.05M	10.29M	7.64M
Gross Profit	8.84M	4.48M	3.03M	2.57M	1.44M
EBITDA	-11.42M	-14.34M	-10.66M	15.43K	-537.52K
Net Income	-12.65M	-14.53M	-11.27M	252.49K	58.30K
Balance Sheet
Total Assets	57.21M	34.76M	33.45M	30.23M	30.42M
Cash, Cash Equivalents and Short-Term Investments	15.72M	19.16M	18.93M	23.74M	25.35M
Total Debt	693.19K	655.72K	1.36M	2.35K	67.73K
Total Liabilities	30.39M	4.71M	5.00M	2.38M	1.93M
Stockholders Equity	26.83M	30.06M	28.44M	27.84M	28.49M
Cash Flow
Free Cash Flow	-12.72M	-15.04M	-10.50M	-713.43K	2.28M
Operating Cash Flow	-12.12M	-14.84M	-9.48M	-618.76K	2.30M
Investing Cash Flow	6.88M	-4.62M	-7.95M	-28.16K	314.10K
Financing Cash Flow	8.19M	15.32M	10.62M	―	-93.59K

HKE Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.58
• 50DMA: Negative
• 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:1726, the sentiment is Negative. The current price of 1.58 is below the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.60, and above the 200-day MA of 1.57, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 24.89 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$1.40B	6.12	13.63%	7.04%	44.58%	11.62%
0240	66 Neutral	HK$1.50B	3.46	17.23%	8.33%	14.88%	-8.34%
2236	59 Neutral	HK$1.57B	10.21	5.53%	―	44.19%	―
Sector *	58 Neutral	HK$13.63B	5.51	-2.78%	5.71%	2.29%	-57.50%
1726	53 Neutral	HK$1.70B	―	-62.57%	―	37.20%	5.04%
2262	46 Neutral	HK$1.45B	793.75	0.59%	―	3.34%	―
1683	43 Neutral	HK$1.31B	106.67	-9.39%	―	-35.62%	-481.82%

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.