Affluent Foundation Holdings Ltd. (1757) AI Stock Analysis

• Market Cap: HK$177.60M
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 162.2
• Beta (1Y): 0.28
• Revenue Growth: 20.78%
• EPS Growth: -55.00%
• Country: HK
• Employees: 111
• Sector: Industrials
• Sector Strength: 78
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 4,716,000
• 30 Day Avg. Volume: 1,676,000
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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

• Rating: 53 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall stock score is primarily influenced by the company's financial performance and technical analysis. While there is revenue recovery and strong financial stability, profitability challenges and cash flow management issues weigh down the score. The technical indicators suggest a neutral to slightly bullish outlook, but the high P/E ratio raises concerns about overvaluation.

Affluent Foundation Holdings Ltd. Business Overview & Revenue Model

Company Description

Affluent Foundation Holdings Limited, an investment holding company, provides services related to foundation works in Hong Kong. It offers excavation and lateral support, and pile caps construction services; and other services, such as demolition works, underground drainage works, earthworks, and structural steel works. The company also leases construction machinery to other construction companies. It serves construction work companies engaged in public and/or private construction projects. The company was founded in 1996 and is headquartered in Tsuen Wan, Hong Kong. Affluent Foundation Holdings Limited is a subsidiary Oriental Castle Group Limited.

How the Company Makes Money

Affluent Foundation Holdings generates revenue through multiple key streams. The primary source of income comes from rental income derived from its property investment portfolio, which includes commercial and residential properties. Additionally, the company earns management fees from its financial services division, which provides advisory and asset management services to clients. Significant partnerships with financial institutions and real estate developers further bolster its revenue, allowing the company to leverage expertise and gain access to lucrative investment opportunities. These diversified revenue channels contribute to the company's overall earnings, ensuring a stable financial foundation.

Affluent Foundation Holdings Ltd. Financial Statement Overview

Summary

Affluent Foundation Holdings Ltd. shows signs of revenue recovery with a 22.92% growth rate, but profitability remains a concern due to low margins and negative EBIT. The balance sheet is strong with low leverage, providing financial stability. Cash flow management needs improvement, particularly in converting earnings into cash.

Income Statement

The company has shown a positive revenue growth rate of 22.92% in the latest year, indicating a recovery from previous declines. However, the net profit margin remains low at 0.44%, and EBIT is negative, reflecting ongoing profitability challenges. The gross profit margin improved to 3.52%, but overall profitability remains weak.

Balance Sheet

The debt-to-equity ratio is low at 0.06, indicating a conservative leverage position, which is a positive sign of financial stability. Return on equity is modest at 1.18%, suggesting limited efficiency in generating returns from equity. The equity ratio is healthy, showing a strong equity base relative to total assets.

Cash Flow

Operating cash flow has improved significantly, but free cash flow growth is negative at -26%, indicating potential challenges in generating cash after capital expenditures. The operating cash flow to net income ratio is 0.12, suggesting that cash generation from operations is not fully aligned with reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	195.88M	240.78M	199.34M	326.49M	511.57M	446.85M
Gross Profit	5.12M	8.48M	4.57M	3.99M	18.87M	8.86M
EBITDA	-7.87M	11.60M	10.07M	15.82M	16.44M	15.84M
Net Income	1.81M	1.05M	2.42M	810.00K	2.96M	652.00K
Balance Sheet
Total Assets	237.39M	221.14M	224.08M	214.17M	222.79M	201.97M
Cash, Cash Equivalents and Short-Term Investments	8.04M	5.75M	3.87M	17.22M	11.88M	7.03M
Total Debt	37.39M	5.40M	5.17M	2.15M	3.39M	35.86M
Total Liabilities	149.21M	132.00M	136.00M	128.51M	142.00M	124.14M
Stockholders Equity	88.18M	89.14M	88.08M	85.66M	80.79M	77.83M
Cash Flow
Free Cash Flow	14.21M	10.51M	-8.89M	3.50M	31.13M	13.90M
Operating Cash Flow	16.64M	15.15M	-4.27M	11.66M	41.21M	28.75M
Investing Cash Flow	-1.64M	-4.44M	-3.49M	-7.74M	-9.39M	-14.76M
Financing Cash Flow	-11.96M	-10.81M	-5.59M	1.42M	-25.90M	-13.89M

Affluent Foundation Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.15
• 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:1757, the sentiment is Positive. The current price of 0.15 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.13, and above the 200-day MA of 0.13, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.13 is Neutral, neither overbought nor oversold. The STOCH value of 34.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1757.

Affluent Foundation Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1420	80 Outperform	HK$197.09M	3.97	8.41%	―	19.15%	106.56%
2663	74 Outperform	HK$211.63M	5.86	13.06%	31.58%	0.25%	-22.09%
2017	61 Neutral	HK$163.90M	5.53	2.78%	―	-8.97%	-12.59%
Sector *	58 Neutral	HK$13.91B	4.82	-3.70%	5.62%	2.15%	-62.33%
1459	54 Neutral	HK$202.68M	37.25	-0.68%	5.26%	-33.92%	-94.74%
1757	53 Neutral	HK$177.60M	162.22	1.19%	―	20.78%	-55.00%
1707	51 Neutral	HK$174.72M	―	-9.34%	―	-40.18%	3.09%

Affluent Foundation Holdings Ltd. Corporate Events

Affluent Foundation Holdings Announces 2025 AGM and Key Resolutions

Affluent Foundation Holdings Limited has announced its upcoming annual general meeting, scheduled for August 20, 2025, in Hong Kong. The meeting will address several key agenda items, including the adoption of financial statements, re-election of directors, and re-appointment of auditors. Additionally, the company seeks approval for resolutions that would allow the directors to issue additional shares, subject to certain conditions, which could potentially impact the company’s capital structure and shareholder value.

Affluent Foundation Holdings Reports 20.8% Revenue Increase but Declines in Profit

Affluent Foundation Holdings Limited reported a 20.8% increase in revenue to approximately HK$240.8 million for the year ending March 31, 2025, compared to the previous year. Despite the revenue growth, the company’s profit attributable to equity holders decreased to approximately HK$1.1 million, and the Board decided not to recommend a final dividend for the period.

Affluent Foundation Holdings Strengthens Nomination Committee with New Appointments

Affluent Foundation Holdings Limited, a company incorporated in the Cayman Islands, has announced the appointment of Ms. Chan Mei Po and Mr. Cheung Kwok Yan Wilfred to its Nomination Committee, effective June 30, 2025. This strategic move is expected to enhance the governance structure of the company, potentially impacting its decision-making processes and stakeholder relations positively.

Affluent Foundation Holdings Announces Board Composition and Committee Roles

Affluent Foundation Holdings Limited, a company incorporated in the Cayman Islands, has announced the composition of its board of directors and their respective roles. The board includes both executive and independent non-executive directors, with Chan Siu Cheong serving as Chairman and CEO. The announcement also details the membership of the company’s Audit, Remuneration, and Nomination Committees, highlighting the leadership and oversight roles within the organization.

Affluent Foundation Holdings Updates Nomination Committee Terms

Affluent Foundation Holdings Limited has announced amendments to the terms of reference for its Nomination Committee, originally established in May 2018. The changes, effective from June 2025, ensure compliance with the Corporate Governance Code and enhance the committee’s structure by mandating a diverse membership and setting clear procedures for meetings and decision-making. This move is expected to strengthen the company’s governance practices and potentially improve stakeholder confidence.

Affluent Foundation Holdings Ltd. Issues Profit Warning Amidst Decreased Earnings

Affluent Foundation Holdings Ltd. has issued a profit warning, anticipating a significant decrease in consolidated profit for the year ended 31 March 2025. The expected profit ranges from HK$200,000 to HK$1.2 million, marking a decline of approximately 91.6% to 50.0% compared to the previous year’s profit of HK$2.4 million. This downturn is attributed to a reduction in the reversal of expected credit loss, a decrease in other income due to lower machinery rental and transportation income, and an increase in gross profit. The company’s financial results are still being finalized, and shareholders are advised to exercise caution.

Affluent Foundation Holdings Schedules Board Meeting for Annual Results

Affluent Foundation Holdings Limited has announced that its Board of Directors will hold a meeting on June 30, 2025, to review and approve the company’s annual results for the fiscal year ending March 31, 2025. The meeting will also consider the declaration of a final dividend and address any other business matters. This announcement indicates the company’s ongoing commitment to transparency and shareholder engagement, as it prepares to disclose its financial performance and potential dividend distribution.