HPC Holdings Ltd. (1742) AI Stock Analysis

• Market Cap: HK$244.80M
• Dividend Yield: N/A
• Average Volume (3M): 614.67K
• Price to Earnings (P/E): 1.9
• Beta (1Y): 0.07
• Revenue Growth: -3.44%
• EPS Growth: 1060.87%
• Country: HK
• Employees: 736
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.11
• Shares Outstanding: 1,600,000,000
• 10 Day Avg. Volume: 1,571,000
• 30 Day Avg. Volume: 614,666
• PEG Ratio: <0.01
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 2.69
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: HK$0.14 ▲(6.15% Upside)

The stock's overall score reflects significant financial challenges, particularly in revenue and profitability, which weigh heavily on its performance. Technical indicators show mixed signals, with short-term bearish momentum but some longer-term support. The stock appears undervalued based on its P/E ratio, offering potential upside if financial performance improves.

Positive Factors

Diversified Revenue Streams

Diversified revenue streams from investments, real estate, and consultancy services provide stability and reduce dependency on a single income source, supporting long-term financial resilience.

Strategic Partnerships

Strategic partnerships enhance growth potential by leveraging emerging market opportunities and fostering innovation, contributing to sustained competitive advantage.

Moderate Leverage

Controlled leverage with a low debt-to-equity ratio indicates prudent financial management, enhancing financial stability and reducing risk of financial distress.

Negative Factors

Declining Revenue

Declining revenue trends indicate challenges in market position and demand, potentially impacting long-term growth prospects and financial performance.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and cost management issues, posing risks to profitability and long-term financial health.

Volatile Cash Flow

Volatile cash flow patterns suggest inconsistent cash generation, which can strain liquidity and limit the company's ability to invest in growth opportunities.

HPC Holdings Ltd. Business Overview & Revenue Model

Company Description

HPC Holdings Limited, an investment holding company, engages in the provision of general building and civil engineering construction works in Singapore. The company provides general building construction services relating to designing and building projects of warehouses and other industrial or commercial buildings; and civil engineering services relating to construction of public infrastructures, such as train stations, tunnels, railways, and express ways. It also offers general contractor services, as well as engineering design and consultancy services. The company was founded in 2004 and is headquartered in Singapore.

How the Company Makes Money

HPC Holdings generates revenue through multiple streams, including returns on investments in healthcare and technology companies, rental income from its property holdings, and capital gains from the sale of real estate assets. The company often enters into strategic partnerships with emerging firms in its sectors, allowing it to gain equity positions and share in the profits of successful ventures. Additionally, HPC Holdings may engage in consultancy services for investment management, further diversifying its revenue base. The combination of these revenue streams, along with prudent financial management, contributes to the company's overall earnings.

HPC Holdings Ltd. Financial Statement Overview

Summary

The company faces significant challenges in revenue and profitability, with a negative net profit margin and declining revenue. The balance sheet shows moderate leverage and financial stability, while cash flow statements indicate operational cash generation despite profit volatility.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	200.54M	169.77M	289.24M	202.91M	188.51M	147.49M
Gross Profit	-1.24M	-5.01M	12.99M	12.09M	-1.05M	402.00K
EBITDA	-3.30M	-6.89M	5.62M	-1.13M	-4.18M	-11.64M
Net Income	22.25M	-8.48M	3.40M	-166.00K	-4.68M	-4.57M
Balance Sheet
Total Assets	220.34M	158.40M	180.02M	177.35M	148.96M	172.07M
Cash, Cash Equivalents and Short-Term Investments	57.85M	46.81M	48.17M	26.52M	32.34M	63.91M
Total Debt	13.71M	14.53M	18.48M	19.56M	12.03M	18.17M
Total Liabilities	100.02M	82.59M	92.50M	92.94M	64.12M	82.28M
Stockholders Equity	107.20M	75.81M	87.95M	84.55M	84.72M	89.40M
Cash Flow
Free Cash Flow	15.88M	5.59M	24.49M	-20.33M	-28.66M	27.39M
Operating Cash Flow	18.08M	7.41M	31.34M	-12.81M	-22.25M	32.74M
Investing Cash Flow	-2.55M	-1.79M	-8.90M	-1.60M	-4.58M	-4.77M
Financing Cash Flow	-6.15M	-7.17M	-1.09M	7.53M	-5.36M	3.87M

HPC Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.13
• 50DMA: Positive
• 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:1742, the sentiment is Positive. The current price of 0.13 is below the 20-day moving average (MA) of 0.15, above the 50-day MA of 0.12, and above the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.50 is Neutral, neither overbought nor oversold. The STOCH value of 57.09 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
1420	74 Outperform	HK$224.89M	3.20	11.37%	―	20.41%	188.08%
2663	65 Neutral	HK$164.29M	4.55	8.56%	25.00%	-32.31%	-51.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2017	60 Neutral	HK$182.46M	6.22	2.70%	―	-27.58%	-18.28%
1742	57 Neutral	HK$244.80M	1.91	22.81%	―	-3.44%	1060.87%
1757	53 Neutral	HK$756.00M	700.00	1.30%	―	78.48%	-33.33%
1459	49 Neutral	HK$141.34M	-11.94	-0.68%	7.02%	-33.92%	-94.74%

HPC Holdings Ltd. Corporate Events

HPC Holdings Expands Details on Share Option Scheme in Annual Report

HPC Holdings Limited has issued a supplemental announcement regarding its Annual Report 2023/2024, specifically providing additional details about its Share Option Scheme. This scheme, adopted in April 2018, allows the Board to offer share options to a wide range of eligible persons, including employees, directors, shareholders, suppliers, customers, and business partners, underlining the company’s commitment to engaging various stakeholders in its growth strategy.