JBB Builders International Ltd. (1903) AI Stock Analysis

• Market Cap: HK$695.00M
• Dividend Yield: N/A
• Average Volume (3M): 256.47K
• Price to Earnings (P/E): 54.7
• Beta (1Y): -0.35
• Revenue Growth: 89.18%
• EPS Growth: N/A
• Country: HK
• Employees: 68
• Sector: Industrials
• Sector Strength: 75
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 98,600
• 30 Day Avg. Volume: 256,466
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 7.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 64 Neutral
• Price Target: HK$1.50 ▲(7.91% Upside)

JBB Builders International Ltd.'s stock score is driven primarily by its strong technical indicators, showing positive momentum. Financial performance indicates a recovery with revenue growth and a strong balance sheet, but cash flow challenges persist. The high P/E ratio suggests overvaluation, which is a concern for valuation.

JBB Builders International Ltd. Business Overview & Revenue Model

Company Description

JBB Builders International Ltd. (1903) is a prominent construction and engineering firm that specializes in infrastructure development, commercial construction, and residential projects. The company operates across various sectors including transportation, energy, and real estate, offering a range of services such as project management, design, and construction execution.

How the Company Makes Money

JBB Builders International Ltd. generates revenue primarily through contracts for construction and engineering projects. These contracts are often secured through competitive bidding processes and can include public infrastructure projects, private commercial developments, and residential construction. The company earns money by completing these projects within the agreed timelines and budgets, often receiving milestone payments throughout the project's duration. Additionally, JBB Builders may form strategic partnerships or joint ventures with other firms to enhance project delivery capabilities and share resources, thus increasing potential revenue. The company may also engage in long-term maintenance contracts for completed projects, providing a steady stream of income post-construction.

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: 1.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 1.39 is above the 20-day moving average (MA) of 1.37, above the 50-day MA of 1.27, and above the 200-day MA of 0.82, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 45.08 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$502.50M	3.95	16.58%	5.97%	17.12%	5.48%
1727	69 Neutral	HK$968.76M	5.23	2.79%	―	-26.45%	-3.13%
1903	64 Neutral	HK$695.00M	54.72	5.92%	―	89.18%	―
Sector *	58 Neutral	HK$13.63B	5.51	-2.78%	5.71%	2.29%	-57.50%
0610	56 Neutral	HK$539.32M	―	-48.43%	―	13.91%	-94.05%
6829	50 Neutral	HK$391.68M	36.76	3.08%	―	38.94%	66.67%
1780	44 Neutral	HK$694.40M	132.53	-5.43%	―	-61.56%	-2.67%

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.