HPC Holdings Ltd. (1742) AI Stock Analysis

• Market Cap: HK$196.80M
• Dividend Yield: N/A
• Average Volume (3M): 614.67K
• Price to Earnings (P/E): 1.5
• Beta (1Y): 0.14
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: HK$0.11 ▼(-5.00% Downside)

The overall stock score of 52 reflects significant financial challenges, particularly in revenue and profitability, despite moderate leverage and operational cash generation. Technical indicators suggest a bearish trend, while the low P/E ratio indicates potential undervaluation. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Diversified Revenue Streams

The diversified revenue streams from healthcare, technology, and real estate provide stability and reduce reliance on a single sector, enhancing resilience against sector-specific downturns.

Strategic Partnerships

Strategic partnerships allow HPC Holdings to leverage growth opportunities and gain equity positions in high-potential ventures, supporting long-term growth and innovation.

Operational Cash Generation

Consistent operational cash generation indicates effective management of core operations, providing liquidity and financial flexibility to navigate profitability challenges.

Negative Factors

Declining Revenue

Declining revenue trends can undermine long-term growth prospects, indicating potential issues in market demand or competitive positioning that need addressing.

Negative Profit Margins

Negative profit margins highlight operational inefficiencies and cost management issues, which could impact the company's ability to reinvest and grow sustainably.

Volatile Cash Flow

Volatile cash flow patterns can strain financial planning and investment capacity, potentially limiting the company's strategic flexibility and growth initiatives.

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: Neutral
• Last Price: 0.12
• 50DMA: Negative
• 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 Neutral. The current price of 0.12 is above the 20-day moving average (MA) of 0.12, below the 50-day MA of 0.13, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 55.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$222.36M	3.17	11.37%	―	20.41%	188.08%
2663	64 Neutral	HK$158.73M	6.99	8.56%	23.73%	-32.31%	-51.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2017	60 Neutral	HK$157.72M	5.38	2.70%	―	-27.58%	-18.28%
1742	52 Neutral	HK$196.80M	1.54	22.81%	―	-3.44%	1060.87%
1459	49 Neutral	HK$130.14M	-10.99	-0.68%	7.69%	-33.92%	-94.74%
1757	49 Neutral	HK$5.62B	4,680.00	1.30%	―	78.48%	-33.33%

HPC Holdings Ltd. Corporate Events

HPC Holdings Reshapes Board as Independent Director Resigns, Veteran Executive Tapped as Successor

HPC Holdings Ltd. announced that independent non-executive director (INED) Gng Hoon Liang will step down from the board, and from his roles as chairman of the remuneration committee and member of the audit and nomination committees, with effect from 31 December 2025, citing other work commitments and confirming there is no disagreement with the board or issues requiring shareholder attention. To maintain board independence and committee coverage, the company plans to appoint veteran semiconductor executive Chew Mun Yew as an INED and member of the audit, nomination and remuneration committees, and to redesignate Chen Liping as chairlady of the remuneration committee from the same date, moves that refresh the board’s governance and add deep industrial and senior management experience to its oversight capabilities.

The most recent analyst rating on (HK:1742) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on HPC Holdings Ltd. stock, see the HK:1742 Stock Forecast page.

HPC Holdings Sets 2025 Board Line-Up and Committee Roles

HPC Holdings Limited, a Cayman Islands-incorporated company listed on the Hong Kong Stock Exchange (Stock Code: 1742), has outlined its board composition and governance framework effective from 31 December 2025, featuring both executive and independent non-executive directors and three key board committees. The company announced that Chairman Wang Yingde and director Shi Jianhua will serve as executive directors, while Leung Wai Yip, Chen Liping, and Chew Mun Yew will act as independent non-executive directors, with specific assignments across the audit, nomination, and remuneration committees, signaling a formalization of its governance structure that may enhance oversight, accountability, and alignment with corporate governance best practices for shareholders and other stakeholders.

The most recent analyst rating on (HK:1742) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on HPC Holdings Ltd. stock, see the HK:1742 Stock Forecast page.