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

• Market Cap: HK$440.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.25
• 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)

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

Strong Balance Sheet / Low Leverage

An 88.6% equity ratio and near-zero debt provide durable financial resilience, lowering insolvency risk and giving flexibility to withstand cyclical industry downturns. This capital structure supports funding options for capex or restructuring without immediate refinancing pressure.

Established Customer Relationships

Long-term supplier relationships with contractors produce recurring contract opportunities and smoother demand visibility. This structural commercial positioning helps secure volumes during cycles, supports pricing negotiations, and reduces customer concentration/marketing costs over time.

Integrated Manufacturing, Trading & Logistics

Control across manufacturing, trading and logistics creates operational durability through vertical integration, lowering reliance on third-party supply and improving margin retention. Serving core construction material needs positions the firm to benefit structurally from regional infrastructure and rebuilding demand.

Negative Factors

Declining Revenue and Shrinking Margins

A sustained drop in revenue and gross margin compression reduce internal funding for operations and investment. Negative net margin signals structural profitability stress versus peers; absent cost base restructuring or pricing power restoration, these trends can persist and erode competitive positioning.

Severe Cash Flow Weakness

Operating cash flow falling to zero materially weakens the company's ability to fund working capital, capex, and debt servicing from operations. Even with low leverage, lack of internal cash increases reliance on external financing and raises execution risk for strategic initiatives over the medium term.

Negative Return on Equity

A negative ROE despite a strong equity base indicates the company is destroying shareholder value and not converting capital into profitable returns. This undermines long-term investor confidence and suggests operational or structural issues must be resolved to restore capital efficiency.

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 profitability and cash generation: revenue and margins declined, net margin turned negative (-5.23% in 2024), and operating cash flow fell to zero. Balance sheet leverage is low with a high equity ratio (88.61%), but ROE is negative (-5.67%), limiting the benefit of the strong capital structure.

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: Neutral

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 above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.30, and below the 200-day MA of 0.36, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 60.14 is Neutral, 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$471.71M	5.84	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$456.00M	191.67	1.91%	―	-6.17%	-42.86%
0406	46 Neutral	HK$337.30M	-4.00	-5.67%	7.35%	24.69%	-257.79%
1746	46 Neutral	HK$440.00M	-57.69	-4.80%	―	-30.56%	-160.00%
8305	46 Neutral	HK$373.06M	-54.47	-8.56%	―	-0.84%	72.06%

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.