Man Shun Group (Holdings) Ltd. (1746) AI Stock Analysis

• Market Cap: HK$460.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -30.56%
• EPS Growth: -160.00%
• Country: HK
• Employees: 71
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 2,077,200
• 30 Day Avg. Volume: 1,303,892
• PEG Ratio: 0.03
• Price to Book (P/B): 1.66
• Price to Sales (P/S): 1.53
• P/FCF Ratio: -520.36
• 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: 46 Neutral
• Price Target: HK$0.37 ▲(31.43% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is held down primarily by deteriorating financial performance, including losses and zero operating cash flow in 2024, despite a low-leverage balance sheet. Technicals are comparatively stronger with the price trending above moving averages and positive momentum, but valuation remains pressured due to negative earnings (negative P/E) and no stated dividend yield.

Positive Factors

Low leverage / strong equity base

A very high equity ratio and near-zero debt provide structural financial resilience. Low leverage reduces insolvency risk and preserves capacity to absorb project delays or cost overruns, supporting long-term contract bidding and operational continuity in a cyclical construction market.

Specialized formwork service model

Focused specialization in formwork systems creates repeatable, project-based revenue and operational expertise. Technical know-how and asset turnover foster durable relationships with main contractors, underpinning long-term demand across public and private construction cycles in Hong Kong.

Low systematic volatility

A low beta indicates the business historically exhibits limited sensitivity to broad market swings. For a service-heavy construction subcontractor, this suggests steadier cash flows relative to market cycles, aiding long-horizon planning and reducing financing stress during broader market downturns.

Negative Factors

Sharp revenue decline

A ~30% year-over-year revenue drop signals weakening demand or lost project share, eroding scale benefits and negotiating leverage with suppliers and contractors. Persisting top-line contraction jeopardizes capacity utilization and long-term profitability unless backlog or new wins rebound materially.

Negative margins and weak operating profitability

Negative net and operating margins indicate persistent pricing pressure or cost inefficiencies. Without margin recovery, the firm lacks internal funds for reinvestment, limiting asset renewal and competitive bidding capacity, and raising structural risks to sustainable returns and shareholder value creation.

Operating cash flow collapsed to zero

A drop to zero operating cash flow undermines the company's ability to fund working capital, maintain formwork assets, and cover labor without external financing. Structurally weak cash generation increases reliance on capital markets or creditors and constrains growth or recovery investment over months.

Man Shun Group (Holdings) Ltd. Business Overview & Revenue Model

Company Description

Man Shun Group (Holdings) Limited, an investment holding company, installs heating, ventilation, and air-conditioning (HVAC) systems in Hong Kong. Its services include HVAC electrical and mechanical engineering. The company primarily serves residential property development projects as a first-tier or second-tier subcontractor. Man Shun Group (Holdings) Limited was founded in 1996 and is headquartered in Tsuen Wan, Hong Kong. Man Shun Group (Holdings) Limited is a subsidiary of Prime Pinnacle Limited.

How the Company Makes Money

Man Shun Group generates revenue primarily through the sale of construction materials, including concrete and aggregates, to contractors and construction firms. The company benefits from its established relationships with key players in the construction sector, enabling it to secure large contracts and maintain a steady demand for its products. Additionally, the company may engage in trading activities, importing and exporting construction materials, which contributes to its revenue streams. Partnerships with suppliers and logistics firms enhance operational efficiency and reduce costs, directly impacting profit margins. Fluctuations in construction activity and infrastructure spending in Hong Kong and surrounding areas also play a significant role in influencing revenue.

Man Shun Group (Holdings) Ltd. Financial Statement Overview

Summary

Weak fundamentals: revenue and margins declined, net margin turned negative (-5.23% in 2024), and operating profitability (EBIT/EBITDA margins) is negative. Balance sheet leverage is low with a high equity ratio (88.61%), but returns are negative (ROE -5.67%) and operating cash flow fell to zero in 2024, raising liquidity/quality-of-earnings concerns.

Income Statement

The company shows a declining revenue trend with a negative revenue growth rate from 2023 to 2024. Gross profit margin has decreased from 12.55% in 2023 to 10.19% in 2024, indicating reduced profitability. The net profit margin shifted from a positive 0.44% in 2023 to a negative -5.23% in 2024, showing a significant deterioration in net income. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 88.61% in 2024. The debt-to-equity ratio is low at 0.007, indicating low leverage. However, the return on equity has turned negative at -5.67%, primarily due to negative net income, which raises concerns about the company's ability to generate returns for shareholders.

Cash Flow

Cash flow analysis reveals significant challenges, with operating cash flow dropping to zero in 2024 from a positive $21.6M in 2023. There is no free cash flow growth, and both operating cash flow to net income and free cash flow to net income ratios are undefined due to zero cash flow, indicating cash generation issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.89M	131.26M	152.95M	125.09M	121.67M	127.59M
Gross Profit	16.45M	13.38M	19.21M	18.71M	20.96M	10.27M
EBITDA	-11.54M	-14.22M	2.89M	2.35M	-293.00K	-6.70M
Net Income	-6.47M	-6.86M	680.00K	238.00K	-2.23M	-8.46M
Balance Sheet
Total Assets	132.90M	136.50M	172.71M	164.37M	171.50M	168.38M
Cash, Cash Equivalents and Short-Term Investments	80.47M	66.81M	88.37M	68.99M	90.05M	96.86M
Total Debt	818.00K	854.00K	1.51M	1.29M	2.01M	3.10M
Total Liabilities	13.38M	15.53M	20.89M	13.22M	20.59M	15.25M
Stockholders Equity	119.52M	120.97M	151.83M	151.15M	150.91M	153.13M
Cash Flow
Free Cash Flow	22.71M	-386.00K	21.42M	-19.72M	-4.95M	-1.25M
Operating Cash Flow	22.72M	193.00K	19.16M	-19.17M	-4.87M	-870.00K
Investing Cash Flow	-11.00K	1.94M	6.13M	35.40M	19.92M	-55.38M
Financing Cash Flow	-25.49M	-25.48M	-1.51M	-1.90M	-1.87M	-1.62M

Man Shun Group (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1746, the sentiment is Positive. The current price of 0.28 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.33, and below the 200-day MA of 0.35, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 80.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1746.

Man Shun Group (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8188	69 Neutral	HK$555.77M	3.81	44.44%	8.65%	-6.68%	-25.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0406	46 Neutral	HK$319.78M	2.01	-5.67%	7.35%	24.69%	-257.79%
1746	46 Neutral	HK$460.00M	-59.65	-5.38%	―	-30.56%	-160.00%
8305	46 Neutral	HK$330.89M	816.67	-7.96%	―	-0.84%	72.06%
6063	44 Neutral	HK$830.00M	72.59	1.91%	―	-6.17%	-42.86%

Man Shun Group (Holdings) Ltd. Corporate Events

Man Shun Group’s Controlling Shareholder Enters MOU for Potential Change of Control

Man Shun Group (Holdings) Limited has disclosed that its controlling shareholder, holding 75% of the company’s issued shares, has signed a memorandum of understanding (MOU) with an independent potential purchaser for a possible sale of its stake that could result in a change of control and trigger a mandatory general offer for the remaining shares. Under the MOU, the vendor has granted an exclusivity period until 30 April 2026 for negotiations and due diligence, during which it cannot engage with other buyers, and the potential purchaser will pay a HK$20 million largely non-refundable deposit that will be credited towards the eventual transaction if a formal agreement is signed, underscoring a significant step toward a potential ownership reshuffle with implications for existing shareholders and the company’s future direction.

The most recent analyst rating on (HK:1746) stock is a Hold with a HK$0.30 price target. To see the full list of analyst forecasts on Man Shun Group (Holdings) Ltd. stock, see the HK:1746 Stock Forecast page.

Man Shun Group Halts Trading Pending Takeovers Code Announcement

Man Shun Group (Holdings) Limited has requested a halt in trading of its shares on the Hong Kong Stock Exchange from 9:00 a.m. on 29 January 2026, pending the release of an announcement under Hong Kong’s Code on Takeovers and Mergers that constitutes inside information. The move signals that a potential corporate transaction or control-related development may be underway, with possible implications for the company’s ownership structure and valuation, and shareholders are advised to await further details once the formal announcement is published.

The most recent analyst rating on (HK:1746) stock is a Hold with a HK$0.30 price target. To see the full list of analyst forecasts on Man Shun Group (Holdings) Ltd. stock, see the HK:1746 Stock Forecast page.