Analogue Holdings Limited (1977) AI Stock Analysis

• Market Cap: HK$1.33B
• Dividend Yield: 5.17%
• Average Volume (3M): 125.13K
• Price to Earnings (P/E): 9.9
• Beta (1Y): 0.30
• Revenue Growth: -7.60%
• EPS Growth: 37.99%
• Country: HK
• Employees: 3,149
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.06
• Shares Outstanding: 1,400,000,000
• 10 Day Avg. Volume: 108,000
• 30 Day Avg. Volume: 125,133
• PEG Ratio: -0.20
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.19
• P/FCF Ratio: -133.35
• 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: 79 Outperform
• Price Target: HK$1.00 ▲(8.70% Upside)

The overall stock score of 79 reflects strong valuation metrics and positive technical indicators, which are the most significant factors. While financial performance shows growth and stability, concerns about cash flow management slightly temper the outlook. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, providing flexibility for future investments and resilience against economic downturns.

Revenue Growth

Consistent revenue growth reflects the company's ability to expand its market presence and adapt to increasing demand for its services, supporting long-term business sustainability.

Operational Efficiency

Maintaining a healthy gross profit margin demonstrates effective cost management, which is crucial for sustaining profitability and competitive advantage in the industry.

Negative Factors

Cash Flow Concerns

The absence of free cash flow poses risks to liquidity and limits the company's ability to invest in growth opportunities, potentially impacting long-term financial health.

Declining Net Profit Margin

A declining net profit margin indicates challenges in controlling operational costs, which could affect profitability and shareholder returns if not addressed.

Revenue Growth Decline

A negative revenue growth rate suggests potential market challenges or competitive pressures, which could hinder the company's ability to sustain its growth trajectory.

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 primarily through its engineering and technical service contracts. The company is involved in various projects that include the installation and maintenance of electrical and mechanical systems, which account for a significant portion of its income. Additionally, it earns revenue from consultancy services in environmental management and energy efficiency solutions. Key revenue streams include long-term contracts with governmental and commercial entities for infrastructure projects, as well as performance-based contracts that incentivize efficiency and sustainability. Strategic partnerships with local and international firms in the construction and engineering sector further enhance its service offerings and market reach, contributing to consistent earnings growth.

Analogue Holdings Limited Financial Statement Overview

Summary

Analogue Holdings Limited shows strong revenue growth and stable operational efficiency. The balance sheet is solid with low leverage and a healthy equity base, suggesting financial stability. However, the absence of free cash flow is concerning and poses risks to liquidity and 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.06B	6.45B	6.13B	6.47B	5.35B	5.13B
Gross Profit	1.01B	1.00B	833.29M	1.01B	878.37M	909.13M
EBITDA	244.02M	228.83M	353.01M	383.62M	450.84M	415.12M
Net Income	133.67M	135.26M	251.50M	114.56M	314.30M	301.35M
Balance Sheet
Total Assets	5.26B	5.20B	5.14B	4.81B	4.45B	3.87B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.04B	1.04B	1.00B	819.93M	1.13B
Total Debt	508.63M	608.22M	366.29M	362.35M	369.91M	70.90M
Total Liabilities	3.00B	3.00B	3.01B	2.75B	2.32B	1.90B
Stockholders Equity	2.26B	2.19B	2.13B	2.06B	2.13B	1.97B
Cash Flow
Free Cash Flow	158.28M	-9.26M	57.03M	426.81M	189.82M	419.64M
Operating Cash Flow	208.02M	146.07M	177.55M	453.35M	241.73M	435.61M
Investing Cash Flow	-69.20M	-150.00M	-41.46M	-1.02M	-627.51M	-89.50M
Financing Cash Flow	-157.40M	143.05M	-203.75M	-245.48M	81.46M	-130.28M

Analogue Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.92
• 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 0.92 is above the 20-day moving average (MA) of 0.91, above the 50-day MA of 0.91, and above the 200-day MA of 0.83, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.28 is Neutral, neither overbought nor oversold. The STOCH value of 89.68 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
1627	80 Outperform	HK$1.36B	5.74	14.15%	9.09%	26.57%	-2.39%
1977	79 Outperform	HK$1.33B	9.91	6.02%	5.17%	-7.60%	37.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1662	60 Neutral	HK$813.70M	16.76	8.67%	―	-16.13%	5.48%
1372	43 Neutral	HK$977.30M	-76.77	-60.47%	―	-9.38%	88.33%
1499	41 Neutral	HK$1.05B	-88.64	-7.49%	―	-16.73%	65.63%
1683	41 Neutral	HK$653.18M	-11.95	-8.55%	―	-37.55%	-1727.78%

Analogue Holdings Limited Corporate Events

Analogue Holdings Plans Partial Exit from Nanjing Canatal to Fund Expansion

Analogue Holdings Limited plans to dispose of up to 3% of the A shares it holds in Nanjing Canatal Data-Centre Environmental Tech Co., Ltd. via open market bidding and block trades on the Shanghai Stock Exchange, within a defined 90-day window following Nanjing Canatal’s related announcement and subject to PRC regulatory limits. The disposal, which has not yet been contractually finalised and may qualify as a discloseable transaction, is intended to boost Analogue’s cash reserves to fund business expansion and potential acquisitions, signalling a move to partially monetise its investment in Nanjing Canatal and reallocate capital to other growth areas within the group.

The most recent analyst rating on (HK:1977) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Analogue Holdings Limited stock, see the HK:1977 Stock Forecast page.