Analogue Holdings Limited (1977) AI Stock Analysis

• Market Cap: HK$1.23B
• Dividend Yield: 4.98%
• Average Volume (3M): 139.71K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.33
• Revenue Growth: 5.17%
• EPS Growth: -45.87%
• Country: HK
• Employees: 3,149
• Sector: Industrials
• Sector Strength: 79
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 1,400,000,000
• 10 Day Avg. Volume: 173,600
• 30 Day Avg. Volume: 139,712
• 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$1.00
• Price Target Upside: 13.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: HK$1.00 ▲(13.64% Upside)

The overall stock score of 73 reflects strong valuation metrics with a low P/E ratio and high dividend yield, which are attractive to investors. However, technical indicators suggest bearish momentum, and cash flow challenges present potential risks. The company's solid financial performance and balance sheet provide a stable foundation, but improving cash flow is crucial for future growth.

Analogue Holdings Limited Business Overview & Revenue Model

Company Description

Analogue Holdings Limited provides electrical and mechanical (E&M) engineering services to public and private sectors in Hong Kong, Mainland China, Macau, the United States, and internationally. It operates through four segments: Building Services; Environmental Engineering; Information, Communications and Building Technology (ICBT); and Lift and Escalators. The Building Services segment offers electrical and mechanical engineering building services, including the design, installation, testing and commissioning, and maintenance of heating, ventilation and air-conditioning system; fire service system; plumbing and drainage system; and electrical and extra low voltage (ELV) system. The Environmental Engineering segment is involved in the design, construction, operation, and maintenance of environmental engineering systems for the treatment of sewage, water, solid waste, sludge, and gas. The ICBT segment engages in the design, installation, and servicing of a range of intelligent systems, information and communications (ICT) systems, and building technology systems. This segment offers solutions for smart building technologies, comprising energy optimization, air conditioning, intelligent control and automation, security and ELV, architectural and LED lighting, renewable energy, and ICT and the Internet of Things. The Lift and Escalators segment designs, supplies, installs, repairs, and maintains a range lifts, escalators, and moving walkways. It also supplies electrical and mechanical materials and equipment; provides data center and critical facilities infrastructure support services; manufactures and sells hardware, software, and electronic systems; develops, produces, and markets automated movement systems; and provides property management services. The company was founded in 1977 and is headquartered in North Point, Hong Kong. Analogue Holdings Limited is a subsidiary of Arling Investment Limited.

How the Company Makes Money

Analogue Holdings Limited generates revenue through its diversified service offerings in building services, environmental engineering, and ICBT. The company's key revenue streams include contracts for the installation and maintenance of electrical and mechanical systems in residential, commercial, and industrial buildings. Additionally, Analogue Holdings earns income from providing energy efficiency solutions, which are increasingly in demand due to global sustainability trends. The company may also benefit from strategic partnerships with technology companies to enhance its ICBT solutions, as well as long-term service agreements that provide a steady source of income. Government projects and infrastructure developments in Hong Kong and the surrounding regions contribute significantly to the company's earnings.

Analogue Holdings Limited Financial Statement Overview

Summary

The company exhibits strong revenue growth and operational efficiency, with a robust balance sheet characterized by low leverage and a strong equity base. However, the absence of free cash flow in 2024 indicates potential liquidity management issues that could affect future investments.

Income Statement

The company has shown a steady revenue growth trend with a notable increase from HK$6.13 billion in 2023 to HK$6.45 billion in 2024. Gross profit margin stands at 15.5%, indicating efficient cost management. However, the net profit margin decreased to 2.1% from 4.1% the previous year, reflecting challenges in managing operational costs. EBIT and EBITDA margins are stable, showcasing operational efficiency.

Balance Sheet

The balance sheet is robust with a debt-to-equity ratio of 0.28, indicating low financial leverage. Return on Equity (ROE) is at 6.2%, which is moderate. The equity ratio of 42.2% suggests a strong equity base. Overall, the company maintains a strong liquidity position with substantial cash reserves.

Cash Flow

The cash flow statement shows zero free cash flow in 2024, which is concerning compared to the positive cash flow in previous years. The operating cash flow to net income ratio and free cash flow to net income ratio are not available for the current period due to zero operating cash flow, indicating potential liquidity management issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.45B	6.13B	6.47B	5.35B	5.13B
Gross Profit	1.00B	833.29M	1.01B	878.37M	909.13M
EBITDA	228.83M	353.01M	383.62M	450.84M	415.12M
Net Income	135.26M	251.50M	114.56M	314.30M	301.35M
Balance Sheet
Total Assets	5.20B	5.14B	4.81B	4.45B	3.87B
Cash, Cash Equivalents and Short-Term Investments	1.04B	924.84M	1.00B	819.93M	1.13B
Total Debt	608.22M	366.29M	362.35M	369.91M	70.90M
Total Liabilities	3.00B	3.01B	2.75B	2.32B	1.90B
Stockholders Equity	2.19B	2.13B	2.06B	2.13B	1.97B
Cash Flow
Free Cash Flow	-9.26M	57.03M	426.81M	189.82M	419.64M
Operating Cash Flow	146.07M	177.55M	453.35M	241.73M	435.61M
Investing Cash Flow	-150.00M	-41.46M	-14.85M	-645.02M	-89.50M
Financing Cash Flow	143.05M	-203.75M	-245.48M	81.46M	-130.28M

Analogue Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1977, the sentiment is Positive. The current price of 0.88 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.82, and above the 200-day MA of 0.81, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 68.87 is Neutral, neither overbought nor oversold. The STOCH value of 83.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1977.

Analogue Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1977	73 Outperform	HK$1.23B	9.03	6.26%	4.98%	5.17%	-45.87%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
1372	―	HK$752.26M	―	-210.39%	―	―	―
1627	79 Outperform	HK$1.44B	6.12	13.63%	6.94%	44.58%	11.62%
1662	64 Neutral	HK$1.26B	31.49	8.13%	―	33.22%	80.73%
1499	53 Neutral	HK$2.69B	―	-10.00%	―	25.70%	61.33%
1683	43 Neutral	HK$1.29B	106.67	-9.39%	―	-35.62%	-481.82%

Analogue Holdings Limited Corporate Events

Analogue Holdings Limited Successfully Passes All AGM Resolutions

Analogue Holdings Limited announced that all resolutions proposed at its Annual General Meeting held on June 26, 2025, were passed by shareholders. These resolutions included the adoption of financial statements, re-election of directors, and approval of general mandates for share issuance and buyback, indicating strong shareholder support and stability in the company’s governance.