HPC Holdings Ltd. (1742) AI Stock Analysis

• Market Cap: HK$136.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.07
• Revenue Growth: -40.96%
• EPS Growth: -353.66%
• Country: HK
• Employees: 736
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 1,600,000,000
• 10 Day Avg. Volume: 4,825,500
• 30 Day Avg. Volume: 1,648,666
• PEG Ratio: 1.08
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.85
• 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: 55 Neutral
• Price Target: HK$0.00 ▼(-100.00%Downside)

The overall stock score reflects a challenging financial situation with declining revenues and profitability, offset by positive technical momentum. The lack of profitability and dividends impacts the valuation negatively. The score is further affected by the absence of recent earnings call data and corporate events.

HPC Holdings Ltd. Business Overview & Revenue Model

Company Description

HPC Holdings Ltd. (1742) is a Hong Kong-based investment holding company primarily engaged in the construction business. The company operates through various segments, including building construction and civil engineering, with operations focused mainly in Singapore. Its core services include design and build projects, general building construction, and upgrading works for public housing projects.

How the Company Makes Money

HPC Holdings Ltd. generates revenue primarily through its construction contracts, which include public sector projects such as public housing developments and civil engineering works. The company bids for and secures construction projects, which it then executes, generating income from the delivery of these services. Additionally, HPC Holdings may engage in private sector projects, further diversifying its revenue streams. Significant partnerships with government agencies and private developers play a crucial role in securing contracts and maintaining a steady flow of income.

HPC Holdings Ltd. Financial Statement Overview

Summary

The company's financial performance is mixed, with significant challenges in revenue and profitability as indicated by a negative net profit margin and a sharp decline in revenue. The balance sheet remains stable with low leverage, but declining equity and assets are concerning. Cash flow is positive but volatile, highlighting operational challenges.

Income Statement

The income statement reflects significant volatility with recent declines in revenue and profitability. The TTM gross profit margin is negative, and there is a sharp decline in revenue compared to the previous year. Net profit margin is also negative, indicating a challenging profitability environment. Previous periods showed some positive margins, but the current downturn is concerning.

Balance Sheet

The balance sheet shows a moderate financial position with a reasonable equity base. The debt-to-equity ratio is low, suggesting controlled leverage. However, the decline in stockholders' equity and total assets over recent periods warrants attention. The equity ratio remains stable, indicating financial resilience despite recent losses.

Cash Flow

Cash flow statements show fluctuations in operating and free cash flow. Recent periods indicate a positive operating cash flow, but historical volatility and the current decrease in free cash flow growth highlight operational challenges. The cash flow to net income ratios suggest reasonable cash-generating capacity despite profit issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
169.77M	289.24M	202.91M	188.51M	147.49M
	Gross Profit
-5.01M	12.99M	12.09M	-1.05M	402.00K
	EBIT
-10.51M	1.75M	-4.72M	-10.92M	-12.50M
	EBITDA
-6.89M	5.62M	-1.13M	-4.18M	-11.64M
	Net Income Common Stockholders
-8.48M	3.40M	-166.00K	-4.68M	-4.57M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
46.81M	48.17M	26.52M	32.34M	63.91M
	Total Assets
158.40M	180.02M	177.35M	148.96M	172.07M
	Total Debt
14.53M	18.48M	19.56M	12.03M	18.17M
	Net Debt
-29.19M	-26.80M	-4.39M	-18.77M	-44.83M
	Total Liabilities
82.59M	92.50M	92.94M	64.12M	82.28M
	Stockholders Equity
75.81M	87.95M	84.55M	84.72M	89.40M
Cash Flow		Free Cash Flow
5.59M	24.49M	-20.33M	-28.66M	27.39M
	Operating Cash Flow
7.41M	31.34M	-12.81M	-22.25M	32.74M
	Investing Cash Flow
-1.79M	-8.90M	-1.60M	-4.58M	-4.77M
	Financing Cash Flow
-7.17M	-1.09M	7.53M	-5.36M	3.87M

HPC Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1742, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.75 is Neutral, neither overbought nor oversold. The STOCH value of 61.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1742.

HPC Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2663	72 Outperform	HK$178.22M	3.77	17.39%	50.00%	23.89%	26.19%
2017	71 Outperform	HK$173.18M	5.85	2.78%	―	-8.97%	-12.59%
1420	63 Neutral	HK$174.35M	3.65	8.41%	―	19.15%	106.56%
Sector *	57 Neutral	$1.32B	4.07	-2.93%	11.10%	3.37%	-51.35%
1742	55 Neutral	HK$136.00M	7.97	-10.52%	―	-40.96%	-353.66%
1459	54 Neutral	HK$173.34M	31.86	0.31%	6.15%	-20.04%	-58.20%
1757	53 Neutral	HK$175.20M	97.33	2.07%	―	-34.92%	―

HPC Holdings Ltd. Corporate Events

HPC Holdings Ltd. Schedules Board Meeting to Review Interim Results

HPC Holdings Ltd. has announced that its Board of Directors will hold a meeting on June 30, 2025, to discuss and approve the interim financial results for the six-month period ending April 30, 2025. The meeting will also consider the possibility of declaring an interim dividend, which could impact shareholder returns and market perception.

HPC Holdings Ltd. Reports Significant Profit Increase for H1 2025

HPC Holdings Ltd. has announced a significant improvement in its financial performance for the half year ended 30 April 2025, with an expected unaudited net profit of approximately S$31.3 million, compared to S$644 thousand in the previous period. This improvement is attributed to a gain on a bargaining purchase from an acquisition and an increase in ongoing projects. The company’s financial position remains sound with sufficient reserves and liquidity, though the final results are pending review and may be subject to adjustments.

HPC Holdings Successfully Passes All Resolutions at AGM

HPC Holdings Limited announced that all proposed ordinary resolutions were successfully passed at their annual general meeting held on April 30, 2025. The resolutions included the approval of financial statements, re-election of directors, and granting of mandates for share issuance and repurchase, indicating strong shareholder support and potential strategic flexibility for the company.