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

• Market Cap: HK$260.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• 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: 47 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

The overall stock score is primarily impacted by the company's declining financial performance, with negative profit margins and cash flow issues posing significant risks. Technical analysis indicates a neutral trend, while poor valuation due to a negative P/E ratio further weighs down the score.

Positive Factors

Strong Equity Position

A strong equity position with low leverage provides the company with financial stability and flexibility to navigate challenging market conditions.

Low Leverage

Low leverage reduces financial risk and interest obligations, allowing the company to focus on operational improvements and strategic investments.

Established Industry Relationships

Strong industry relationships help ensure a steady demand for products, providing a competitive advantage and supporting long-term revenue stability.

Negative Factors

Declining Revenue

Declining revenue indicates challenges in market demand or competitive positioning, which could affect long-term growth and profitability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and cost management issues, impacting the company's ability to generate sustainable profits.

Cash Flow Issues

Zero operating cash flow limits the company's ability to reinvest in growth, pay down debt, or return capital to shareholders, posing long-term financial challenges.

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

Man Shun Group exhibits worrying financial trends. Revenue and profitability are declining, with negative profit margins and cash flow issues. Despite the company's strong equity position and low leverage, the negative return on equity and zero operating cash flow pose significant risks.

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: Negative
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1746, the sentiment is Negative. The current price of 0.28 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.31, and below the 200-day MA of 0.39, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 21.53 is Positive, neither overbought nor oversold. The STOCH value of 7.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$486.06M	6.02	45.61%	8.65%	-6.68%	-25.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
6063	48 Neutral	HK$446.00M	179.17	1.91%	―	-6.17%	-42.86%
1746	47 Neutral	HK$260.00M	-39.23	-4.80%	―	-30.56%	-160.00%
0406	46 Neutral	HK$332.92M	-3.95	-5.67%	7.35%	24.69%	-257.79%
8305	46 Neutral	HK$510.93M	-76.32	-8.56%	―	-0.84%	72.06%