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Trendzon Holdings Group Limited (HK:1865)
:1865
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Trendzon Holdings Group Limited (1865) AI Stock Analysis

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HK:1865

Trendzon Holdings Group Limited

(1865)

Rating:52Neutral
Price Target:
Trendzon Holdings Group is struggling with financial performance due to negative profitability and cash flow challenges. While technical analysis shows some positive momentum, the lack of earnings call data and a negative P/E ratio present significant concerns. The strong equity base provides some stability, but the company must address operational inefficiencies to improve its financial health.

Trendzon Holdings Group Limited (1865) vs. iShares MSCI Hong Kong ETF (EWH)

Trendzon Holdings Group Limited Business Overview & Revenue Model

Company DescriptionTrendzon Holdings Group Limited, an investment holding company, engages in the provision of infrastructural pipeline construction and related engineering services primarily for gas, water, telecommunications, and power industries in Singapore and Hong Kong. The company offers high pressure gas transmission pipelines, high pressure hot tapping operations, medium or low pressure gas distribution pipelines, and gas pipe inspection and repair services; water transmission and distribution pipelines for industrial, commercial, and residential areas; district cooling systems; and water pipe inspection and repair services. It also provides telecommunication cable systems, power cable installation, and solar panel installation services; cold bending and cutting services for steel pipelines; shaft construction services; and pipe jacking operation services. In addition, the company trades in building materials. The company was formerly known as Pipeline Engineering Holdings Limited and changed to Trendzon Holdings Group Limited in May 2021. The company was founded in 1996 and is headquartered in Singapore.
How the Company Makes MoneyTrendzon Holdings Group Limited generates revenue through multiple streams, primarily from its construction and engineering services. The company earns money by undertaking building construction and civil engineering projects, where it is responsible for the entire lifecycle of the project, including design, procurement, construction, and management. Revenue is recognized based on the progress of the projects, which is usually measured using the percentage-of-completion method. Additionally, the company may have partnerships with suppliers and contractors to enhance its service offerings, though specific partnership details are not disclosed. The company's earnings are influenced by factors such as project size, duration, and the competitive landscape of the construction industry.

Trendzon Holdings Group Limited Financial Statement Overview

Summary
Trendzon Holdings Group Limited is facing financial challenges with negative profitability and cash flow issues. The income statement reflects a challenging period with negative net profit margins, and cash flow analysis reveals negative free cash flow. The balance sheet shows a strong equity base, but consistent negative net income impacts return on equity.
Income Statement
45
Neutral
The company has experienced fluctuating revenue with a decline of 1.64% from 2023 to 2024. Gross profit margin for 2024 is 13.52%, but the net profit margin is negative at -20.27% due to significant net losses. EBIT and EBITDA margins are also negative, indicating operational inefficiencies. The overall income statement reflects a challenging period with profitability concerns.
Balance Sheet
55
Neutral
The balance sheet shows a moderate debt-to-equity ratio of 0.38, suggesting manageable leverage. The equity ratio is at 62.13%, indicating a strong equity base relative to total assets. However, consistent negative net income impacts return on equity, reflecting a need for improved profitability.
Cash Flow
40
Negative
Cash flow analysis reveals a negative free cash flow of -$11.29 million for 2024, and a concerning free cash flow growth rate compared to the previous year. Operating cash flow to net income ratio is negative, highlighting cash flow challenges. The company needs to focus on improving cash generation from operations.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue24.06M59.12M60.10M59.10M43.45M27.28M
Gross Profit2.71M7.99M7.42M9.86M9.98M4.42M
EBITDA-8.88M-6.27M2.87M6.63M9.07M3.08M
Net Income-9.55M-11.99M-2.06M1.02M3.25M1.57M
Balance Sheet
Total Assets104.65M112.13M120.35M103.13M73.94M44.96M
Cash, Cash Equivalents and Short-Term Investments16.23M5.44M7.92M10.34M13.39M15.76M
Total Debt20.76M26.60M32.39M48.99M23.04M1.53M
Total Liabilities37.24M42.27M64.20M61.96M33.49M7.77M
Stockholders Equity60.61M69.69M55.86M41.17M40.44M37.19M
Cash Flow
Free Cash Flow6.81M-11.29M1.12M-21.79M-19.25M-273.00K
Operating Cash Flow7.04M-10.72M1.94M-20.07M-2.06M16.00K
Investing Cash Flow-351.00K-7.09M-3.31M-6.94M-17.04M-258.00K
Financing Cash Flow-6.42M13.69M-3.71M24.46M15.41M-3.98M

Trendzon Holdings Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.28
Price Trends
50DMA
0.29
Negative
100DMA
0.29
Negative
200DMA
0.27
Positive
Market Momentum
MACD
>-0.01
Negative
RSI
49.04
Neutral
STOCH
72.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1865, the sentiment is Neutral. The current price of 0.28 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.29, and above the 200-day MA of 0.27, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 72.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1865.

Trendzon Holdings Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
HK$228.00M8.217.49%12.50%19.67%9.64%
72
Outperform
HK$215.00M4.008.43%7.67%11.39%-25.31%
67
Neutral
€8.39B21.106.46%2.81%1.89%-39.33%
57
Neutral
HK$198.40M23.625.05%4.03%24.88%
52
Neutral
HK$202.60M-17.97%-20.23%-1808.04%
51
Neutral
HK$179.76M-9.34%-40.18%3.09%
50
Neutral
HK$243.38M-1.47%8.22%0.94%82.30%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1865
Trendzon Holdings Group Limited
0.28
0.12
75.00%
HK:1447
SFK Construction Holdings Ltd.
0.56
0.02
3.70%
HK:1547
IBI Group Holdings Limited
0.25
0.05
25.00%
HK:1582
CR Construction Group Holdings Limited
0.43
0.02
4.88%
HK:1707
Geotech Holdings Ltd.
0.11
0.03
37.50%
HK:2863
Golden Faith Group Holdings Limited
0.36
0.07
24.14%

Trendzon Holdings Group Limited Corporate Events

Trendzon Holdings Announces Major Transaction with Equity Disposal
Apr 14, 2025

Trendzon Holdings Group Limited has entered into a Sale and Purchase Agreement to dispose of 27% equity interest in a target company for S$8.3 million. This transaction involves a connected person at the subsidiary level and has been approved by the board and independent non-executive directors, confirming that it is fair, reasonable, and in the best interests of the company and its shareholders. The disposal is classified as a major transaction, subject to reporting, announcement, and shareholders’ approval requirements, with an EGM to be convened for approval.

Trendzon Holdings Approves Name Change to Pengo Holdings
Mar 26, 2025

Trendzon Holdings Group Limited announced that during their extraordinary general meeting held on March 26, 2025, a special resolution was passed to change the company’s name to Pengo Holdings Group Limited, along with its Chinese name. This decision was unanimously approved by the shareholders, reflecting a strategic move that could impact the company’s branding and market presence.

Trendzon Holdings Completes Acquisition with Valuation Clarification
Mar 19, 2025

Trendzon Holdings Group Limited, incorporated in the Cayman Islands, has announced the completion of a discloseable transaction involving the acquisition of 100% equity interest in a target company. The company provided clarification on a clerical error regarding the valuation method used for the acquisition, stating that the asset approach, rather than the market approach, was used to appraise the value. This acquisition is expected to impact Trendzon Holdings’ operations by potentially enhancing its market position, as the valuation was independently confirmed by Peak Vision Appraisals Limited, ensuring transparency and reliability in the transaction.

Trendzon Holdings Completes New Share Subscription
Mar 19, 2025

Trendzon Holdings Group Limited has successfully completed the subscription of new shares under a general mandate, resulting in the issuance of 28,336,000 new shares. The gross proceeds from this subscription amount to approximately HK$5,667,000, with net proceeds of HK$5,617,000. The company plans to use 60% of the net proceeds to repay liabilities and 40% to replenish general working capital. This issuance represents approximately 3.85% of the company’s enlarged share capital, bringing the total number of issued shares to 736,736,000.

Trendzon Holdings Announces HK$40 Million Bond Issuance
Mar 13, 2025

Trendzon Holdings Group Limited has announced the successful placement and issuance of bonds amounting to HK$40,000,000. The company entered into a Placing Agreement with Cheer Union, appointing them as the placing agent, and a Subscription Agreement with Central Point Holding Development Limited as the subscriber. This strategic move is intended to provide shareholders and potential investors with the latest business developments and strengthen the company’s financial position.

Trendzon Holdings Announces Acquisition of Target Company
Mar 4, 2025

Trendzon Holdings Group Limited has announced a discloseable transaction involving the acquisition of 100% equity interest in a target company. The acquisition, conducted through its indirect wholly-owned subsidiary, Penggao Green New Energy (Guangzhou) Co., Ltd., will result in the target company becoming an indirect wholly-owned subsidiary of Trendzon Holdings. This move is expected to consolidate the financial results of the target company into Trendzon Holdings’ financial statements, potentially impacting the company’s operations and market positioning. The acquisition is subject to certain conditions and may not proceed, prompting caution among shareholders and potential investors.

Trendzon Holdings Proposes Name Change to Pengo Holdings
Mar 3, 2025

Trendzon Holdings Group Limited has announced an extraordinary general meeting to be held on March 26, 2025, to discuss a special resolution regarding the proposed change of the company’s name to Pengo Holdings Group Limited. This change is subject to approval by the Registrar of Companies in the Cayman Islands. The name change reflects a strategic rebranding effort, potentially impacting the company’s market identity and stakeholder perception.

Trendzon Holdings Announces New Share Subscription Agreement
Feb 25, 2025

Trendzon Holdings Group Limited has entered into a Subscription Agreement to issue new shares under a general mandate. The subscription price is set at HK$0.20 per share, representing a discount to recent trading prices. The issuance is expected to raise approximately HK$5.617 million in net proceeds, which the company plans to use for liability repayment and working capital replenishment. This move could impact the company’s financial stability and market positioning, although the completion of the subscription is contingent upon certain conditions being met.

Trendzon Holdings Proposes Name Change to Pengo Holdings
Feb 21, 2025

Trendzon Holdings Group Limited has proposed a name change to Pengo Holdings Group Limited, seeking to better reflect its business diversification and future development direction. This change is expected to enhance the company’s corporate image and aid in its business growth, with no impact on shareholder rights or daily operations.

Trendzon Holdings Updates Board Structure
Feb 21, 2025

Trendzon Holdings Group Limited has announced an updated list of its board of directors and their respective roles, effective from February 21, 2025. The board consists of executive, non-executive, and independent non-executive directors, including Ms. Feng Jiamin as Chairman and Mr. Michael Shi Guan Wah as Chief Executive Officer. The company has also outlined the composition of its three key committees: Audit, Remuneration, and Nomination. This announcement reflects a structured governance approach, potentially enhancing operational oversight and strategic decision-making within 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: Apr 07, 2025