B & D Strategic Holdings Limited (1780) AI Stock Analysis

• Market Cap: HK$396.80M
• Dividend Yield: 5.26%
• Average Volume (3M): 346.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -55.42%
• EPS Growth: -281.93%
• Country: HK
• Employees: 49
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.02
• Shares Outstanding: 620,000,000
• 10 Day Avg. Volume: 430,250
• 30 Day Avg. Volume: 346,083
• PEG Ratio: -24.36
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 7.02
• P/FCF Ratio: -56.93
• 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: 48 Neutral
• Price Target: HK$0.70 ▼(-7.50% Downside)

The score is held back primarily by weakening financial performance (losses, sharp revenue contraction, and negative cash flow) and bearish technical positioning (price below key moving averages with negative MACD). A strong, low-debt balance sheet and a relatively high dividend yield partially offset these risks.

Positive Factors

Conservative balance sheet (near-zero debt)

Near-zero leverage materially reduces refinancing and interest-rate risk in a cyclical engineering and construction sector. This structural strength gives the company time and optionality to weather project delays, preserve liquidity, and avoid forced financing while operations recover over the next several months.

Substantial equity buffer

A sizeable equity base relative to assets provides a durable loss-absorption capacity, lowering insolvency likelihood and supporting creditor confidence. Over a 2–6 month horizon this buffer enables continued project delivery and reduces the need for immediate dilutive capital raises during cyclical weakness.

Losses smaller than prior severe downturn

Relative improvement versus the company's worst prior downturn suggests operational and risk-management lessons were applied. While still loss-making, the smaller magnitude indicates structural resilience and a more limited recovery required for profitability to normalize, improving odds of stabilization.

Negative Factors

Sharp revenue contraction

A near-halving of revenue materially weakens scale economics, reduces fixed-cost absorption, and undermines project pipeline visibility. Such a structural decline pressures margins and cash conversion, making a sustained operational recovery necessary before profitability and free cash flow can be restored.

Negative operating and free cash flow

Persistent negative operating and free cash flow indicate the business is burning cash rather than self-funding operations or investments. Over months this constrains reinvestment, dividend sustainability, and increases reliance on external financing or asset disposals, limiting strategic flexibility.

Deteriorated profitability and thin gross margins

Thin mid-single-digit gross margins leave little room to absorb overhead, project cost overruns, or pricing pressure, keeping operating profits negative. Persistent negative returns on equity signal capital is not generating adequate returns, threatening long-term shareholder value if margins don't re-expand.

B & D Strategic Holdings Limited Business Overview & Revenue Model

Company Description

B & D Strategic Holdings Limited, an investment holding company, operates as a contractor that specializes in alteration and addition, and civil engineering works in Hong Kong. Its alteration and addition works include new structural works, fitting-out works, changes in facilities configuration, constructing a new extension to existing buildings, and conversion of an existing buildings to various types. The company's civil engineering works comprise site formation and foundation works, as well as provides administrative services. It primarily serves property asset management companies, property developers, and contractors. The company was founded in 1995 and is headquartered in Kwai Chung, Hong Kong.

How the Company Makes Money

B & D Strategic Holdings Limited generates revenue through its strategic investments and financial services. The company earns income by investing in diverse asset classes, which may include equities, fixed income, and alternative investments, aiming for capital appreciation and dividend income. Additionally, it provides financial advisory services, charging fees for its expertise in guiding clients on investment strategies, mergers, acquisitions, and restructuring. Partnerships with financial institutions and other strategic entities enhance its capability to deliver comprehensive services, contributing to its revenue growth.

B & D Strategic Holdings Limited Financial Statement Overview

Summary

The company faces financial challenges, particularly in profitability and cash flow generation, as evidenced by deteriorating income and cash flow metrics. The balance sheet remains stable, with low leverage, but declining returns on equity indicate potential inefficiencies. Overall, the company needs to address operational inefficiencies and enhance cash flow management to improve financial health.

Income Statement

The company has experienced a decline in revenue over the years, with a significant drop in gross profit and net income. Recent years show negative EBIT and EBITDA margins, indicating operational inefficiencies and profitability challenges. Revenue growth is inconsistent, with a notable decrease from earlier periods.

Balance Sheet

The balance sheet is relatively strong with a high equity ratio and low levels of debt. The debt-to-equity ratio is very low, indicating minimal leverage, which suggests stability. However, the return on equity has deteriorated significantly in recent years, highlighting a decline in profitability relative to shareholder investment.

Cash Flow

The company exhibits negative free cash flow in the latest period, driven by negative operating cash flow. The cash flow to net income ratios indicate that cash flow generation is not supporting profitability adequately. There is a significant decline in cash flow metrics compared to previous years, posing liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.38M	88.38M	229.92M	220.85M	275.11M	218.75M
Gross Profit	4.18M	4.18M	4.42M	13.82M	22.86M	-30.62M
EBITDA	-9.59M	-8.89M	-8.61M	3.03M	11.49M	-37.40M
Net Income	-9.54M	-9.54M	-9.32M	5.21M	10.14M	-39.95M
Balance Sheet
Total Assets	197.24M	197.24M	248.93M	268.14M	245.10M	284.25M
Cash, Cash Equivalents and Short-Term Investments	129.91M	129.91M	123.95M	165.12M	126.68M	183.49M
Total Debt	0.00	0.00	123.00K	0.00	0.00	53.00K
Total Liabilities	32.69M	32.69M	61.83M	71.72M	53.88M	63.18M
Stockholders Equity	164.55M	164.55M	187.10M	196.42M	191.21M	221.07M
Cash Flow
Free Cash Flow	-9.69M	-10.89M	-28.22M	38.40M	7.38M	7.09M
Operating Cash Flow	-3.00M	-4.20M	-27.82M	39.87M	7.75M	7.16M
Investing Cash Flow	8.49M	10.28M	8.95M	-22.68M	-25.50M	9.30M
Financing Cash Flow	-123.00K	-126.00K	-125.00K	-39.99M	-39.99M	-53.00K

B & D Strategic Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1780, the sentiment is Negative. The current price of 0.76 is above the 20-day moving average (MA) of 0.70, above the 50-day MA of 0.76, and below the 200-day MA of 1.04, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 38.66 is Neutral, neither overbought nor oversold. The STOCH value of 36.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1780.

B & D Strategic Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1556	78 Outperform	HK$532.50M	3.98	17.51%	5.71%	17.51%	1.48%
1903	64 Neutral	HK$1.43B	608.51	1.05%	―	37.95%	-52.04%
6829	64 Neutral	HK$789.12M	93.20	2.76%	―	22.30%	48.48%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1780	48 Neutral	HK$396.80M	-42.38	-5.65%	5.26%	-55.42%	-281.93%
6063	48 Neutral	HK$410.00M	170.83	1.91%	―	-6.17%	-42.86%

B & D Strategic Holdings Limited Corporate Events

Rongzun International Reports Decline in Interim Financial Results

Rongzun International Holdings Group Limited, incorporated in the Cayman Islands, reported its interim financial results for the six months ending September 30, 2025. The company experienced a significant decline in revenue to approximately HK$28.6 million from HK$43.3 million in the same period in 2024, with a gross loss margin increasing to 13.1%. Despite a slight improvement in loss before tax, the overall financial performance remained weak, with a loss of approximately HK$10.3 million. The Board did not recommend an interim dividend, indicating ongoing financial challenges.

Rongzun International Holdings Reports Reduced Loss for H2 2025

Rongzun International Holdings Group Limited has issued a profit warning, indicating a reduction in net loss for the six months ending September 2025, compared to the same period in 2024. The anticipated net loss is attributed to a gross loss of at least HK$4.0 million and administrative expenses not exceeding HK$7.5 million. The figures are based on preliminary unaudited accounts and are subject to change, with final results expected in late November 2025.

Rongzun International Holdings Schedules Board Meeting for Interim Results

Rongzun International Holdings Group Limited, incorporated in the Cayman Islands, has announced a board meeting scheduled for November 28, 2025. The meeting will focus on approving the interim results for the six months ended September 30, 2025, and discussing the potential payment of an interim dividend.

Rongzun International Completes Major Private Share Placement

Rongzun International Holdings Group Limited has completed a private placement of existing shares, with 372,000,000 shares successfully placed to 12 independent placees at HK$0.446 per share. This transaction, representing 60% of the company’s issued share capital, does not affect the company’s operations, and no single placee holds 30% or more of the total issued share capital, ensuring no mandatory general offer is triggered.

Rongzun International Announces Major Share Placing by Controlling Shareholder

Rongzun International Holdings Group Limited, a company incorporated in the Cayman Islands, has announced a private placing of existing shares by its controlling shareholder, Kyosei Technology Inc. The placing agreement involves selling up to 372,000,000 shares at a minimum price of HK$0.446 each, which represents 60% of the company’s existing issued share capital. This move will significantly reduce the shareholding of Kyosei Technology Inc., and neither Dr. Hiroshi Kaneko nor Mr. Yanase Kenichi will remain controlling shareholders. The company does not anticipate any adverse effects on its operations from this transaction.