Affluent Foundation Holdings Ltd. (1757) AI Stock Analysis

• Market Cap: HK$510.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 472.2
• Beta (1Y): 0.41
• Revenue Growth: 20.78%
• EPS Growth: -55.00%
• Country: HK
• Employees: 111
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,200,000,000
• 10 Day Avg. Volume: 1,092,000
• 30 Day Avg. Volume: 1,922,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$0.50 ▼(-7.41% Downside)

The overall stock score is primarily influenced by financial performance and technical analysis. While the company shows revenue recovery and financial stability, profitability challenges and cash flow issues persist. The stock's strong bullish momentum is tempered by overbought technical indicators. High P/E ratio suggests overvaluation, impacting the overall score.

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 net profit margins and negative EBIT. The balance sheet is strong with low leverage, indicating financial stability, but 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: 0.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.54 is above the 20-day moving average (MA) of 0.41, above the 50-day MA of 0.28, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 82.61 is Negative, neither overbought nor oversold. The STOCH value of 91.98 is Negative, 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	74 Outperform	HK$223.63M	3.18	11.37%	―	20.41%	188.08%
2017	69 Neutral	HK$173.18M	5.91	2.70%	―	-27.58%	-18.28%
2663	65 Neutral	HK$169.86M	4.85	13.06%	22.58%	0.25%	-22.09%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1757	53 Neutral	HK$510.00M	472.22	1.19%	―	20.78%	-55.00%
1459	48 Neutral	HK$138.67M	-11.71	-0.68%	7.69%	-33.92%	-94.74%
1707	41 Neutral	HK$92.40M	―	-9.58%	―	3.97%	14.02%

Affluent Foundation Holdings Ltd. Corporate Events

Affluent Foundation Holdings Announces Major Share Acquisition and Cash Offer

Affluent Foundation Holdings Ltd., incorporated in the Cayman Islands, has announced a major transaction involving the sale of 75% of its issued shares to China VC Holdings Limited. This transaction, valued at HK$80,000,000, was completed immediately upon signing, resulting in China VC Holdings Limited owning a significant majority of the company. Following this acquisition, a mandatory unconditional cash offer will be made to acquire the remaining shares, ensuring compliance with the Takeovers Code. The offer price is set at HK$0.089 per share, matching the purchase price of the initial transaction.

Affluent Foundation Holdings Announces Trading Halt

Affluent Foundation Holdings Limited, a company incorporated in the Cayman Islands, has announced a trading halt of its shares on the Stock Exchange of Hong Kong Limited effective from October 16, 2025. This halt is due to the pending release of an announcement related to The Hong Kong Code on Takeovers and Mergers, which contains inside information about the company.

Affluent Foundation Holdings Secures Shareholder Approval for Key Resolutions at AGM

Affluent Foundation Holdings Limited announced that all proposed resolutions at their Annual General Meeting held on August 20, 2025, were approved by shareholders. The resolutions included the adoption of financial statements, re-election of directors, and granting of mandates to issue and repurchase shares, reflecting strong shareholder support and potentially enhancing the company’s operational flexibility.