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Affluent Foundation Holdings Ltd. (HK:1757)
:1757
Hong Kong Market

Affluent Foundation Holdings Ltd. (1757) AI Stock Analysis

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HK:1757

Affluent Foundation Holdings Ltd.

(1757)

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Neutral 49 (OpenAI - 5.2)
Rating:49Neutral
Price Target:
HK$4.50
▲(109.30% Upside)
Overall score reflects weak valuation (very high P/E with no dividend support) and only modest financial strength due to ongoing profitability and cash flow conversion challenges, partially offset by a strong technical uptrend that is currently overbought.
Positive Factors
Conservative Leverage
Very low leverage provides durable financial stability, lowering refinancing and interest risks. This conservative capital structure supports project financing optionality, resilience in downturns, and capacity to pursue new development or investment opportunities without heavy reliance on external debt.
Top-line Recovery
Sustained revenue recovery signals renewed demand and execution in core property and services lines. Over a 2-6 month horizon this trend supports scale benefits, improves negotiating leverage with partners, and creates a platform to rebuild margins if cost structure and project mix are optimized.
Diversified Revenue Streams
A multi-segment business model reduces dependence on a single cyclical market. Recurring rental income and fee-based financial services can smooth cash flows across cycles, while development upside offers growth optionality—supporting more stable, long-term cash generation and client diversification.
Negative Factors
Weak Profitability
Extremely thin margins and negative operating profit constrain the company’s ability to self-fund growth and absorb project overruns. Persistently weak operating profitability undermines returns on projects, limits reinvestment capacity, and raises execution and viability risks over the medium term.
Poor Cash Conversion
Negative FCF growth and low operating cash conversion indicate earnings are not translating into durable cash. This limits capital expenditure flexibility, restricts ability to pay down liabilities or return capital, and increases reliance on external funding for new developments or acquisitions.
Low Return on Equity
A ROE near 1% signals limited efficiency in converting equity into profits. Over time this suggests suboptimal capital allocation or low-margin asset mix, which can deter investors and constrain growth unless management materially improves project selection, pricing, or operational productivity.

Affluent Foundation Holdings Ltd. (1757) vs. iShares MSCI Hong Kong ETF (EWH)

Affluent Foundation Holdings Ltd. Business Overview & Revenue Model

Company DescriptionAffluent 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 MoneyAffluent Foundation Holdings Ltd. generates revenue through multiple key streams, primarily from its property development and investment activities. The company earns money by acquiring, developing, and selling real estate properties, which can include residential, commercial, and industrial assets. Additionally, it generates income through rental yields from its property portfolio. The financial services segment contributes to earnings through advisory fees and management fees charged for asset management services provided to clients. Strategic partnerships with financial institutions and real estate developers enhance its capabilities and market reach, enabling the company to capitalize on investment opportunities and optimize revenue generation.

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. However, 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue240.78M240.78M199.34M326.49M511.57M446.85M
Gross Profit8.07M8.48M4.57M3.99M18.87M8.86M
EBITDA4.95M11.60M10.07M15.82M16.44M15.84M
Net Income1.05M1.05M2.42M810.00K2.96M652.00K
Balance Sheet
Total Assets221.14M221.14M224.08M214.17M222.79M201.97M
Cash, Cash Equivalents and Short-Term Investments5.75M5.75M3.87M17.22M11.88M7.03M
Total Debt5.40M5.40M5.17M2.15M3.39M35.86M
Total Liabilities132.00M132.00M136.00M128.51M142.00M124.14M
Stockholders Equity89.14M89.14M88.08M85.66M80.79M77.83M
Cash Flow
Free Cash Flow10.63M10.51M-8.89M3.50M31.13M13.90M
Operating Cash Flow15.27M15.15M-4.27M11.66M41.21M28.75M
Investing Cash Flow-4.44M-4.44M-3.49M-7.74M-9.39M-14.76M
Financing Cash Flow-10.81M-10.81M-5.59M1.42M-25.90M-13.89M

Affluent Foundation Holdings Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.15
Price Trends
50DMA
1.64
Positive
100DMA
0.97
Positive
200DMA
0.55
Positive
Market Momentum
MACD
0.75
Negative
RSI
91.21
Negative
STOCH
93.51
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 2.15 is below the 20-day moving average (MA) of 2.67, above the 50-day MA of 1.64, and above the 200-day MA of 0.55, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 91.21 is Negative, neither overbought nor oversold. The STOCH value of 93.51 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$222.36M3.1711.37%20.41%188.08%
64
Neutral
HK$158.73M6.998.56%23.73%-32.31%-51.89%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
HK$157.72M5.382.70%-27.58%-18.28%
49
Neutral
HK$5.62B4,680.001.30%78.48%-33.33%
49
Neutral
HK$130.14M-10.99-0.68%7.69%-33.92%-94.74%
46
Neutral
HK$105.84M-6.85-9.58%3.97%14.02%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1757
Affluent Foundation Holdings Ltd.
4.68
4.55
3500.00%
HK:1420
Chuan Holdings Limited
0.18
0.08
81.44%
HK:1459
Jujiang Construction Group Co., Ltd. Class H
0.24
-0.05
-17.29%
HK:1707
Geotech Holdings Ltd.
0.06
-0.03
-35.05%
HK:2017
Chanhigh Holdings Ltd.
0.26
-0.03
-8.93%
HK:2663
KPa-BM Holdings Ltd
0.29
-0.07
-18.80%

Affluent Foundation Holdings Ltd. Corporate Events

Affluent Foundation Names Controlling Shareholder Zhou Zhenlin as Executive Director and Chairman
Jan 7, 2026

Affluent Foundation Holdings Limited has appointed Mr. Zhou Zhenlin as an executive director, effective 7 January 2026, reflecting a move to bring in leadership with over two decades of management experience in skincare products, beauty instruments, health and wellness consulting, digital technology services and information consulting. Zhou, who is also the controlling shareholder with an interest of about 75.37% of the company’s shares and currently chairs another Hong Kong-listed firm, China Wacan Group Company Limited, will receive a monthly director’s fee of HK$10,000 under a two-year service contract that renews automatically and is subject to standard rotation and re-election rules. In tandem with his appointment, Zhou will assume the role of chairman of the board on the same date, succeeding executive director Mr. Chan Siu Cheong, who will step down as chairman but remain on the board, signaling a significant shift in board leadership and consolidating strategic control under Zhou while maintaining continuity at the executive director level.

The most recent analyst rating on (HK:1757) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Affluent Foundation Holdings Ltd. stock, see the HK:1757 Stock Forecast page.

Affluent Foundation Holdings Updates Board and Committee Composition
Jan 7, 2026

Affluent Foundation Holdings Limited, a Cayman Islands-incorporated company listed in Hong Kong (Stock Code: 1757), has disclosed the latest composition of its board of directors and key governance committees. The company is led by executive chairman Zhou Zhenlin and CEO Chan Siu Cheong, alongside two other executive directors and three independent non-executive directors. The announcement outlines updated roles and responsibilities within the board’s Audit, Remuneration and Nomination Committees, with independent directors chairing the Audit and Remuneration Committees and senior executives taking leading roles on the Nomination Committee. This refreshed governance structure underscores the company’s emphasis on independent oversight and formalized board processes, signaling continued alignment with Hong Kong listing requirements and best practices in corporate governance for investors and other stakeholders.

The most recent analyst rating on (HK:1757) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Affluent Foundation Holdings Ltd. stock, see the HK:1757 Stock Forecast page.

Affluent Foundation Plans Rebranding to Global Chinese Business Club
Jan 7, 2026

Affluent Foundation Holdings Limited plans to change its English name to Global Chinese Business Club and adopt a new Chinese name, in a move the board says will better reflect the group’s strategic direction and intention to diversify beyond its current core business. The proposed rebranding, which remains subject to shareholder approval at an extraordinary general meeting and regulatory approval from the Cayman Islands registrar, is expected to enhance the company’s visibility in the market and support future business development without affecting shareholder rights or the validity and tradability of existing share certificates; new share certificates will be issued only under the new name once the change takes effect, and the company will later announce the effective date, any new stock short name and website details.

The most recent analyst rating on (HK:1757) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Affluent Foundation Holdings Ltd. stock, see the HK:1757 Stock Forecast page.

China VC Lifts Stake in Affluent Foundation to 75.37% After Thin Offer Acceptance
Jan 2, 2026

Affluent Foundation Holdings Ltd., a Cayman Islands-incorporated company listed in Hong Kong, has reported a change in its shareholding structure following a mandatory unconditional cash offer by China VC Holdings Limited. The offer to acquire all issued shares not already owned by China VC resulted in only one valid acceptance covering 4,390,000 shares, or about 0.37% of Affluent Foundation’s issued share capital, bringing China VC and concert parties’ stake to approximately 75.37%. Settlement of the HK$390,710 total cash consideration for the tendered shares will be completed by ordinary post within the prescribed timeline under the Takeovers Code. The outcome confirms China VC’s majority control while maintaining a sufficient public float, clarifying ownership concentration for shareholders and the market.

The most recent analyst rating on (HK:1757) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Affluent Foundation Holdings Ltd. stock, see the HK:1757 Stock Forecast page.

Affluent Foundation Holdings Faces Acquisition Offer
Dec 10, 2025

Affluent Foundation Holdings Limited, incorporated in the Cayman Islands, is involved in a mandatory unconditional cash offer by Yellow River Securities Limited on behalf of China VC Holdings Limited to acquire all issued shares not already owned by China VC Holdings. The despatch of the Composite Document, which includes details of the offer and recommendations from the Independent Board Committee, marks a significant step in this acquisition process. This move is expected to impact the company’s shareholder structure and could influence its market positioning.

The most recent analyst rating on (HK:1757) stock is a Hold with a HK$1.50 price target. To see the full list of analyst forecasts on Affluent Foundation Holdings Ltd. stock, see the HK:1757 Stock Forecast page.

Affluent Foundation Holdings Reports Strong Revenue Growth Amidst Decline in Gross Profit
Nov 25, 2025

Affluent Foundation Holdings Limited reported its interim financial results for the six months ending September 30, 2025. The company saw a significant increase in revenue by 86.8% to approximately HK$234.3 million compared to the same period in 2024. However, the gross profit decreased by 11.9% to approximately HK$3.3 million. The profit attributable to equity holders increased to HK$191,000, with basic earnings per share at HK0.02 cents. Despite the revenue growth, the board decided not to recommend an interim dividend for this period.

The most recent analyst rating on (HK:1757) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on Affluent Foundation Holdings Ltd. stock, see the HK:1757 Stock Forecast page.

Affluent Foundation Holdings Delays Dispatch of Composite Document for Cash Offer
Nov 13, 2025

Affluent Foundation Holdings Ltd. and China VC Holdings Limited have announced a delay in the dispatch of a composite document related to a mandatory unconditional cash offer by Yellow River Securities Limited. The delay is due to the need for additional time to finalize certain information, including financial details and advice from the Independent Financial Adviser. The new deadline for the document’s dispatch is now set for on or before December 11, 2025, pending approval.

The most recent analyst rating on (HK:1757) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Affluent Foundation Holdings Ltd. stock, see the HK:1757 Stock Forecast page.

Affluent Foundation Holdings Schedules Board Meeting for Interim Results
Nov 12, 2025

Affluent Foundation Holdings Limited, incorporated in the Cayman Islands, has announced a forthcoming board meeting scheduled for November 25, 2025. The meeting will focus on reviewing and approving the interim financial results for the six months ending September 30, 2025, and potentially declaring an interim dividend. This announcement is significant as it may impact the company’s financial strategy and shareholder returns, indicating a period of financial assessment and potential distribution of profits.

The most recent analyst rating on (HK:1757) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Affluent Foundation Holdings Ltd. stock, see the HK:1757 Stock Forecast page.

Affluent Foundation Appoints Independent Financial Adviser Amidst Offer Developments
Nov 7, 2025

Affluent Foundation Holdings Limited has appointed Capital 9 Limited as the Independent Financial Adviser to guide the Independent Board Committee regarding an offer under the Takeovers Code. This move is part of the company’s strategic actions concerning the offer, although there is no guarantee that the offer will proceed. Shareholders and potential investors are advised to exercise caution.

The most recent analyst rating on (HK:1757) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Affluent Foundation Holdings Ltd. stock, see the HK:1757 Stock Forecast page.

Affluent Foundation Holdings Announces Major Share Acquisition and Cash Offer
Oct 23, 2025

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
Oct 16, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 11, 2026