Heng Hup Holdings Ltd. (1891) AI Stock Analysis

• Market Cap: HK$148.00M
• Dividend Yield: N/A
• Average Volume (3M): 170.40K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.06
• Revenue Growth: 1.65%
• EPS Growth: 35.96%
• Country: HK
• Employees: 371
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 284,000
• 30 Day Avg. Volume: 170,400
• PEG Ratio: 0.02
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 1.91
• 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: 65 Neutral
• Price Target: HK$0.14 ▲(1.43% Upside)

The overall stock score reflects strong financial performance with revenue growth and improved profitability, but liquidity concerns due to cash flow challenges are significant. Technical indicators suggest the stock is nearing oversold territory, while the low P/E ratio indicates potential undervaluation.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for the company's services, supporting long-term business expansion.

Improved Profitability

Improved profitability through better cost management enhances the company's financial health and ability to reinvest in growth opportunities.

Strong Shareholder Support

Strong shareholder support reflects confidence in management and strategic direction, providing stability and potential for future initiatives.

Negative Factors

Liquidity Challenges

Liquidity challenges can hinder operational flexibility and growth, necessitating improved cash management to ensure sustainable operations.

Zero Operating Cash Flow

Zero operating cash flow limits the company's ability to fund operations and invest in growth without relying on external financing.

Cash Management Concerns

Ongoing cash management concerns highlight the need for strategic financial planning to support long-term business sustainability.

Heng Hup Holdings Ltd. Business Overview & Revenue Model

Company Description

Heng Hup Holdings Ltd. (1891) is a Singapore-based investment holding company primarily engaged in the manufacturing and distribution of various products across multiple sectors, including construction materials, industrial supplies, and consumer goods. The company operates through several subsidiaries, focusing on delivering high-quality products and services while leveraging its extensive industry experience and market knowledge. Heng Hup Holdings aims to enhance its market position by continuously expanding its product range and exploring new business opportunities.

How the Company Makes Money

Heng Hup Holdings generates revenue through the manufacturing and distribution of its core products, which include construction materials and industrial supplies. The company operates multiple revenue streams, including direct sales to contractors and businesses in the construction sector, as well as retail distribution to consumers. Key revenue drivers include the demand for construction materials, which is influenced by infrastructure development and real estate projects in the region. Additionally, Heng Hup Holdings may engage in strategic partnerships with suppliers and distributors to enhance its market reach and optimize supply chain efficiency, thereby contributing to its overall earnings.

Heng Hup Holdings Ltd. Financial Statement Overview

Summary

Heng Hup Holdings Ltd. shows strong revenue growth and improved profitability, with a stable balance sheet and reduced leverage. However, cash flow challenges due to zero free and operating cash flow in 2024 highlight liquidity concerns that need addressing.

Income Statement

The company has demonstrated healthy revenue growth with a 26.73% increase from 2023 to 2024. The gross profit margin improved to 7.38% in 2024, up from 5.72% in 2023, indicating better cost management. Net profit margin also increased significantly to 1.49% in 2024 compared to 0.63% in 2023. EBIT and EBITDA margins showed improvement, highlighting enhanced operating efficiency. Overall, the income statement reflects positive growth and improved profitability.

Balance Sheet

The balance sheet shows a stable equity base with stockholders' equity increasing to $238.44M in 2024. The debt-to-equity ratio improved to 0.38, down from 0.50 in 2023, indicating a reduction in leverage. The equity ratio stands at 62.67%, reflecting a strong equity position. Return on equity improved to 10.68% in 2024 from 4.00% in 2023, showcasing better utilization of equity. Overall, the balance sheet indicates financial stability with manageable leverage.

Cash Flow

Cash flow analysis shows challenges with free cash flow and operating cash flow being zero in 2024, indicating potential liquidity constraints. The lack of positive cash flow from operations is a concern, despite improvements in profitability. Prior years also show negative free cash flow, highlighting the need for better cash management. The cash flow statement requires attention to ensure sustainable operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.57B	1.71B	1.35B	1.40B	1.42B	868.31M
Gross Profit	125.90M	125.96M	77.08M	52.33M	77.57M	48.99M
EBITDA	42.63M	45.15M	26.54M	13.55M	42.03M	17.46M
Net Income	22.48M	25.46M	8.54M	2.38M	25.48M	8.39M
Balance Sheet
Total Assets	380.00M	380.35M	382.11M	278.46M	280.02M	228.78M
Cash, Cash Equivalents and Short-Term Investments	40.46M	51.32M	24.85M	28.22M	29.16M	25.08M
Total Debt	93.45M	89.53M	107.46M	54.19M	34.62M	21.49M
Total Liabilities	138.18M	145.69M	169.52M	74.68M	73.25M	44.53M
Stockholders Equity	246.91M	238.44M	213.30M	204.76M	206.84M	184.25M
Cash Flow
Free Cash Flow	28.55M	55.20M	-49.87M	-10.78M	-6.01M	-16.83M
Operating Cash Flow	35.17M	67.39M	-39.02M	6.78M	-2.15M	-11.27M
Investing Cash Flow	-7.77M	-13.20M	-10.79M	-16.79M	-2.60M	1.90M
Financing Cash Flow	-39.86M	-28.69M	44.30M	9.06M	6.12M	6.16M

Heng Hup Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1891, the sentiment is Positive. The current price of 0.14 is above the 20-day moving average (MA) of 0.14, above the 50-day MA of 0.14, and above the 200-day MA of 0.12, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 83.98 is Negative, neither overbought nor oversold. The STOCH value of 65.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1891.

Heng Hup Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1891	65 Neutral	HK$148.00M	3.73	9.55%	―	1.65%	35.96%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0838	63 Neutral	HK$1.54B	6.16	8.13%	5.09%	0.51%	3.74%
0929	54 Neutral	HK$820.76M	78.79	0.57%	―	1.48%	12.50%
0255	53 Neutral	HK$900.12M	133.96	0.40%	14.77%	-4.52%	―
0822	50 Neutral	HK$335.16M	-6.63	-4.46%	―	10.91%	11.01%

Heng Hup Holdings Ltd. Corporate Events

Heng Hup to Acquire Malaysian Leasehold Properties in RM17 Million Deal

Heng Hup Holdings Ltd. has announced that an indirect controlled subsidiary has agreed to acquire two leasehold industrial land plots in Shah Alam, Selangor, Malaysia, for a total consideration of about RM17.0 million (approximately HK$32.4 million). The properties, which the group is currently renting, will be acquired under conditional sale and purchase agreements, subject to state authority consent for transfer and foreign ownership, with an 18‑month longstop period for these approvals; if the conditions are not met, the agreements may be terminated and the deposit refunded with interest. Classified as a discloseable transaction under Hong Kong Listing Rules, the deal strengthens the company’s asset base in a key operating location but remains uncertain until regulatory consents are obtained, and investors are cautioned that completion may or may not proceed.

The most recent analyst rating on (HK:1891) stock is a Hold with a HK$0.14 price target. To see the full list of analyst forecasts on Heng Hup Holdings Ltd. stock, see the HK:1891 Stock Forecast page.