JBB Builders International Ltd. (1903) AI Stock Analysis

• Market Cap: HK$745.00M
• Dividend Yield: N/A
• Average Volume (3M): 243.60K
• Price to Earnings (P/E): 59.1
• Beta (1Y): -0.30
• Revenue Growth: 89.18%
• EPS Growth: N/A
• Country: HK
• Employees: 68
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 425,600
• 30 Day Avg. Volume: 243,600
• PEG Ratio: 1.56
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.62
• 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: HK$1.50
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$1.50 ▲(0.00%Upside)

JBB Builders International Ltd. shows a strong financial foundation with significant revenue growth and low debt levels. The technical analysis indicates positive momentum, but potential short-term corrections are possible due to overbought conditions. Valuation concerns arise from a high P/E ratio and lack of dividend yield, suggesting caution for value investors.

JBB Builders International Ltd. Business Overview & Revenue Model

Company Description

JBB Builders International Limited, an engineering contractor, provides marine construction, and building and infrastructure services to contractors and developers in Malaysia and Singapore. The company offers land reclamation and related works, such as soil investigation, hydrographic survey, pre-reclamation design, sand handling/filling, ground treatment, sand surcharge removal work, and other related works; and marine civil works consisting of construction of jetty, channel-crossing works, maintenance dredging, and river diversion works. It also provides marine transportation services, which comprise transportation of marine sand, loading of marine sand extracted from the approved sand source onto sand carriers, and carriage and delivery of marine sand to designated sites where the marine sand is unloaded to be used for land reclamation. In addition, the company provides building and infrastructure services include general building works in construction of properties and infrastructure works. Further, it engages in the construction and trading of sand; and land based machinery works and rental activities. JBB Builders International Limited was founded in 2012 and is headquartered in Johor Bahru, Malaysia.

How the Company Makes Money

JBB Builders International Ltd. generates revenue through a diversified model centered on construction contracts and engineering services. The company earns money primarily by undertaking large-scale construction projects where it charges clients for the design, management, and execution of these projects. Key revenue streams include residential and commercial property development, industrial construction projects, and infrastructure developments. The company may also engage in public-private partnerships, which provide additional income through long-term contracts and government-backed initiatives. Strategic partnerships with suppliers and subcontractors help in optimizing costs and enhancing project efficiency, contributing to overall profitability.

JBB Builders International Ltd. Financial Statement Overview

Summary

JBB Builders International Ltd. has demonstrated significant revenue growth with improving profitability metrics. The balance sheet is robust with low debt levels, providing financial stability. However, there is room for operational efficiency improvements and the need to enhance cash conversion and profit margins.

Income Statement

JBB Builders International Ltd. shows a significant revenue increase from the previous year, with a Revenue Growth Rate of 51.2%. The Gross Profit Margin stands at 2.5%, indicating room for improvement in cost management. The Net Profit Margin has turned positive at 0.91%, reflecting improved profitability. However, the EBITDA Margin is relatively low at 1.42%, suggesting limited operating efficiency. The company has rebounded from negative EBIT and EBITDA in the previous year, showcasing a positive trajectory.

Balance Sheet

The company's Debt-to-Equity Ratio is low at 0.09, indicating prudent financial leverage. The Return on Equity is modest at 2.32%, pointing to a need for stronger profitability. The Equity Ratio is strong at 46.65%, suggesting a stable financial structure. Overall, the balance sheet reflects financial stability with low debt levels, providing a solid foundation for growth.

Cash Flow

JBB Builders International Ltd. shows a positive Free Cash Flow Growth Rate, shifting from a significant negative to less negative cash flow. The Operating Cash Flow to Net Income Ratio is low, suggesting potential inefficiencies in converting profits to cash. The Free Cash Flow to Net Income Ratio is also negative, indicating challenges in generating free cash relative to net income. Overall, cash flow improvements are needed for sustainable growth.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	426.85M	329.33M	217.78M	512.30M	141.04M	125.53M
Gross Profit	13.86M	8.33M	12.29M	29.16M	6.68M	19.84M
EBITDA	6.95M	4.68M	-4.99M	19.00M	-6.46M	7.05M
Net Income	7.58M	2.99M	-8.23M	12.53M	-9.42M	2.16M
Balance Sheet
Total Assets	289.10M	276.81M	218.87M	294.79M	269.87M	250.37M
Cash, Cash Equivalents and Short-Term Investments	97.59M	94.09M	82.93M	91.22M	91.56M	80.97M
Total Debt	9.14M	11.18M	14.58M	14.17M	11.38M	1.29M
Total Liabilities	154.44M	140.46M	85.54M	155.53M	147.50M	114.41M
Stockholders Equity	127.91M	129.15M	125.53M	129.97M	114.05M	125.59M
Cash Flow
Free Cash Flow	1.31M	-184.00K	-15.19M	-3.85M	3.50M	-28.27M
Operating Cash Flow	1.97M	42.00K	-15.01M	-3.74M	3.79M	-28.09M
Investing Cash Flow	13.57M	20.97M	4.55M	-1.07M	-1.98M	-6.14M
Financing Cash Flow	-5.03M	-4.92M	-2.27M	2.21M	9.63M	-7.18M

JBB Builders International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1903, the sentiment is Positive. The current price of 1.5 is above the 20-day moving average (MA) of 1.22, above the 50-day MA of 1.16, and above the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 63.38 is Neutral, neither overbought nor oversold. The STOCH value of 67.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1903.

JBB Builders International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1556	79 Outperform	HK$510.00M	4.01	16.58%	5.88%	17.12%	5.48%
1903	64 Neutral	HK$745.00M	59.06	5.92%	―	89.18%	―
1727	64 Neutral	HK$757.39M	4.09	2.79%	―	-26.45%	-3.13%
0610	59 Neutral	HK$531.39M	―	-48.43%	―	13.91%	-94.05%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%
6829	57 Neutral	HK$463.68M	26.01	3.08%	―	37.12%	-55.20%
1780	44 Neutral	HK$731.60M	132.53	-5.43%	―	-28.42%	―

JBB Builders International Ltd. Corporate Events

JBB Builders Issues Profit Warning Amid Rising Costs

JBB Builders International Ltd. has issued a profit warning, anticipating a loss of up to RM9.9 million for the fiscal year ending June 30, 2025, compared to a profit of RM3.0 million the previous year. The expected loss is attributed to increased loss allowances for expected credit losses, a rise in general and administrative expenses, and changes in revenue composition, despite a significant increase in revenue and gross profit from new contracts in reclamation and infrastructure services.

JBB Builders Completes Share Placement, Maintains Control

JBB Builders International Limited, a company incorporated in the Cayman Islands, has completed the placing of 100,000,000 shares held by its controlling shareholder, JBB Berlian Investment Limited, which is wholly owned by Datin Ngooi. The shares, representing approximately 20% of the company’s total issued share capital, were placed to five independent placees by China Zong Heng Finance Group Limited at a price of HK$0.6 per share. Despite the reduction in shares held by the controlling shareholder, Datin Ngooi and Dato’ Ng continue to control a majority stake of 51.10% in the company, ensuring their position as controlling shareholders.

JBB Builders Announces Property Disposal in Strategic Move

JBB Builders International Ltd. announced the disposal of properties through Sale and Purchase Agreements with a total selling price of RM1.5 million. The transaction, classified as discloseable under the Listing Rules, signifies a strategic move potentially impacting the company’s asset management and financial positioning.

JBB Builders Revises Annual Cap for Connected Transactions

JBB Builders International Ltd. has announced a revision of the annual cap for its continuing connected transactions with Southern Diggers, related to remaining construction works. The revision is due to additional costs and re-measurement of quantities, with the new cap set for the year ending June 30, 2025. This adjustment reflects the company’s operational needs and compliance with the Listing Rules, impacting its financial reporting and stakeholder engagement.