Beng Soon Machinery Holdings Limited (1987) AI Stock Analysis

• Market Cap: HK$202.00M
• Dividend Yield: N/A
• Average Volume (3M): 3.27M
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.76
• Revenue Growth: 12.70%
• EPS Growth: -33.33%
• Country: HK
• Employees: 131
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 1,277,600
• 30 Day Avg. Volume: 3,269,266
• PEG Ratio: 0.00
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.85
• P/FCF Ratio: 92.64
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$0.22 ▲(9.00% Upside)

Beng Soon Machinery Holdings Limited's overall stock score is primarily driven by its strong financial performance, characterized by robust revenue growth and a solid balance sheet. However, the stock's high valuation and limited technical momentum are notable concerns. The absence of earnings call insights and corporate events further limits the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, which can enhance long-term business sustainability.

Balance Sheet Health

A strong equity ratio reflects low financial risk and provides a solid foundation for future growth and investment opportunities.

Cash Flow Improvement

Improved cash flow management enhances financial flexibility, enabling the company to invest in growth initiatives and manage obligations effectively.

Negative Factors

Low Net Profit Margin

A low net profit margin indicates potential inefficiencies in cost management or pricing strategy, which could hinder profitability and long-term growth.

Limited Profitability

Low return on equity reflects challenges in generating sufficient returns from investments, potentially impacting investor confidence and future capital raising.

Cash Flow to Net Income Ratio

A lower conversion of net income to free cash flow may limit the company's ability to reinvest in growth opportunities and meet financial commitments.

Beng Soon Machinery Holdings Limited Business Overview & Revenue Model

Company Description

Beng Soon Machinery Holdings Limited provides demolition services to public and private sector clients in Singapore. The company undertakes demolition works of industrial buildings, power stations, chemical plants, high rise commercial and residential properties, educational institutions, bridges and marine structures, public roads, and infrastructures. It also engages in the sale of inventories and leasing of machinery; trades in minerals and ore; and sells goods through online marketing platform. The company was founded in 1979 and is headquartered in Singapore.

How the Company Makes Money

Beng Soon Machinery generates revenue through multiple streams, primarily from the sale of machinery and equipment to sectors such as construction and manufacturing. The company also earns income from after-sales services, including maintenance and repair of machinery, which provides a steady revenue flow. Additionally, the company may engage in partnerships with equipment manufacturers to become authorized distributors, earning commissions and margins on sales. These partnerships can enhance their product offerings and attract a wider customer base, contributing significantly to their overall earnings.

Beng Soon Machinery Holdings Limited Financial Statement Overview

Summary

Beng Soon Machinery Holdings Limited demonstrates strong revenue growth and a robust balance sheet with a healthy equity ratio and low leverage. However, the company faces challenges in translating revenue growth into net income, as indicated by a low net profit margin and room for improvement in cash flow generation.

Income Statement

Beng Soon Machinery Holdings Limited has shown a positive revenue growth rate of 14.06% from 2023 to 2024, indicating a strong recovery from previous years. The gross profit margin improved to 31.75% in 2024, reflecting efficient cost management. However, the net profit margin remains low at 1.04%, suggesting challenges in translating revenue growth into net income. The EBIT and EBITDA margins are 3.24% and 15.58% respectively, showing operational efficiency but room for improvement in profitability.

Balance Sheet

The company maintains a healthy equity ratio of 71.78%, indicating strong financial stability and low reliance on debt financing. The debt-to-equity ratio is 0.28, reflecting conservative leverage. Return on equity is modest at 0.86%, suggesting limited profitability relative to equity. Overall, the balance sheet is robust with a strong equity base.

Cash Flow

The free cash flow improved significantly from negative in 2023 to positive in 2024, indicating better cash management. The operating cash flow to net income ratio is 2.16, showing strong cash generation relative to net income. However, the free cash flow to net income ratio is 0.88, suggesting that not all net income translates into free cash flow. Continued focus on cash flow generation is needed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.23M	33.48M	29.35M	32.74M	26.74M	9.84M
Gross Profit	11.78M	10.63M	9.24M	9.49M	7.07M	-6.48M
EBITDA	6.70M	5.22M	4.80M	4.53M	3.74M	-11.55M
Net Income	1.04M	348.24K	24.68K	524.73K	189.79K	-11.99M
Balance Sheet
Total Assets	56.03M	56.27M	53.30M	53.78M	54.37M	53.12M
Cash, Cash Equivalents and Short-Term Investments	13.19M	14.06M	15.11M	17.06M	12.28M	9.07M
Total Debt	11.47M	11.28M	9.10M	9.79M	10.70M	11.37M
Total Liabilities	16.31M	15.88M	13.21M	13.91M	15.06M	13.86M
Stockholders Equity	39.72M	40.38M	40.09M	40.06M	39.51M	39.30M
Cash Flow
Free Cash Flow	689.52K	307.29K	-875.13K	6.08M	4.68M	-2.34M
Operating Cash Flow	1.54M	753.19K	538.24K	7.46M	5.01M	-1.78M
Investing Cash Flow	-633.65K	-168.40K	-743.66K	-1.02M	290.55K	-354.24K
Financing Cash Flow	-2.82M	-1.64M	-1.74M	-1.66M	-2.10M	-2.92M

Beng Soon Machinery Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 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:1987, the sentiment is Negative. The current price of 0.2 is below the 20-day moving average (MA) of 0.20, below the 50-day MA of 0.21, and above the 200-day MA of 0.17, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.36 is Neutral, neither overbought nor oversold. The STOCH value of 34.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1987.

Beng Soon Machinery Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9998	66 Neutral	HK$316.00M	4.20	27.58%	―	81.81%	724.56%
1987	66 Neutral	HK$202.00M	33.67	2.60%	―	12.70%	-33.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1870	59 Neutral	HK$528.93M	-15.57	-18.78%	―	-8.26%	-240.93%
1953	55 Neutral	HK$212.94M	24.85	3.28%	―	-29.24%	-40.35%
1742	52 Neutral	HK$176.00M	1.37	22.81%	―	-3.44%	1060.87%
1559	39 Underperform	HK$149.53M	-1.84	-46.27%	―	-63.83%	36.12%

Beng Soon Machinery Holdings Limited Corporate Events

Beng Soon Machinery Secures Major Demolition Contracts in Singapore

Beng Soon Machinery Holdings Limited has been awarded four significant demolition contracts in Singapore, including a technically complex project at a major power station. These contracts, expected to generate over S$30 million in revenue, highlight the company’s strong capabilities and are anticipated to positively impact its future business and financial performance.