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New Concepts Holdings Ltd (HK:2221)
:2221
Hong Kong Market
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New Concepts Holdings Ltd (2221) AI Stock Analysis

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HK

New Concepts Holdings Ltd

(2221)

Rating:43Neutral
Price Target:
New Concepts Holdings Ltd faces significant challenges, primarily in operational efficiency and cash flow management. Despite revenue growth, negative EBIT margins and cash flow issues are key concerns. The technical analysis shows a bearish trend, with no immediate signs of a reversal. Valuation metrics further highlight the stock's unattractiveness, with a negative P/E ratio and no dividend yield. Overall, these factors contribute to a low stock score.

New Concepts Holdings Ltd (2221) vs. iShares MSCI Hong Kong ETF (EWH)

New Concepts Holdings Ltd Business Overview & Revenue Model

Company DescriptionNew Concepts Holdings Limited, an investment holding company, operates in the construction industry in Hong Kong and Mainland China. It operates through Construction Works and Environmental Protection segments. The company's foundation works include construction of bored piles, pipe pile, geotechnically instrumentation, SHP, ELS, pile cap works, decontamination soil, mini-piling works, grout curtain works, and associated GIFW works. It also undertakes civil engineering and general building works. In addition, the company is involved in the construction and operation of kitchen waste treatment plants; and engineering, procurement, and construction of kitchen waste and water treatment business. New Concepts Holdings Limited was founded in 1996 and is headquartered in Kowloon Bay, Hong Kong.
How the Company Makes MoneyNew Concepts Holdings Ltd generates revenue primarily through its construction-related activities. The company's main revenue streams include contracts for foundation works and construction projects, which are typically awarded by clients in both the public and private sectors. Additionally, the company earns income from leasing construction machinery to other contractors and developers. Strategic partnerships with industry stakeholders and adherence to regulatory standards also play a significant role in securing contracts and maintaining a steady flow of business, contributing to the company's overall earnings.

New Concepts Holdings Ltd Financial Statement Overview

Summary
New Concepts Holdings Ltd shows signs of improvement in profitability but faces challenges with cash flow and operational efficiency. Revenue growth is a positive sign, but negative EBIT margins highlight operational challenges. The balance sheet reflects moderate leverage, with room for improving financial health by focusing on cash flow management and operational efficiency.
Income Statement
45
Neutral
The company has seen some improvements in net income, moving from a loss to a slight profit. Gross profit margin remains stable but low at around 9.7%. Revenue growth is positive year-over-year at 15.23%. However, EBIT and EBITDA margins are concerning due to consistent negative EBIT, indicating operational inefficiencies.
Balance Sheet
55
Neutral
The balance sheet shows a relatively high debt-to-equity ratio of 0.51, indicating moderate leverage. Equity ratio improved to 36.16%, showing strengthening equity position. ROE is positive at 0.72%, reflecting slight profitability. Overall, the balance sheet demonstrates stability with potential for leveraging improvements.
Cash Flow
40
Negative
Cash flow remains a challenge with negative operating cash flow and free cash flow. The free cash flow to net income ratio is negative, suggesting cash flow issues despite marginal net income. There is a significant drop in free cash flow compared to previous periods, indicating cash management concerns.
BreakdownMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue628.24M545.19M654.85M591.52M648.62M
Gross Profit61.09M53.56M82.80M23.66M46.98M
EBITDA73.86M23.18M13.65M8.02M-62.48M
Net Income2.86M-20.80M5.50M-55.00M-295.68M
Balance Sheet
Total Assets1.10B1.03B812.60M1.08B1.30B
Cash, Cash Equivalents and Short-Term Investments37.32M134.54M117.46M66.69M40.62M
Total Debt204.50M218.87M80.75M150.95M425.44M
Total Liabilities637.59M626.99M573.16M947.70M1.15B
Stockholders Equity399.25M359.38M191.04M100.48M110.30M
Cash Flow
Free Cash Flow-53.94M-252.41M86.19M12.63M98.96M
Operating Cash Flow-33.75M-14.14M102.70M23.24M105.08M
Investing Cash Flow-49.57M-263.89M-9.04M12.91M1.17M
Financing Cash Flow5.03M307.58M-43.76M483.00K-118.40M

New Concepts Holdings Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.06
Price Trends
50DMA
0.06
Positive
100DMA
0.06
Negative
200DMA
0.08
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
44.11
Neutral
STOCH
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2221, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.06, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.11 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:2221.

New Concepts Holdings Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$148.00M19.892.66%6.49%36.65%60.00%
62
Neutral
C$6.70B7.733.45%2.77%6.50%-23.02%
51
Neutral
HK$176.40M-9.34%-40.18%3.09%
43
Neutral
HK$101.19M-22.45%21.44%65.22%
HK$148.80M16.324.54%
40
Underperform
HK$140.40M-137.59%26.81%16.02%
38
Underperform
HK$88.95M-8.07%17.86%-12.81%-224.37%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:2221
New Concepts Holdings Ltd
0.06
-0.03
-33.33%
HK:1615
AB Builders Group Limited
0.25
0.03
13.64%
HK:1707
Geotech Holdings Ltd.
0.11
0.04
57.14%
HK:1793
Wecon Holdings Ltd.
0.18
0.04
28.57%
HK:1920
Hands Form Holdings Limited
0.40
0.06
17.65%
HK:2193
Man King Holdings Limited
0.21
0.03
16.67%

New Concepts Holdings Ltd Corporate Events

New Concepts Holdings Appoints Asian Alliance as New Auditor
Apr 28, 2025

New Concepts Holdings Limited, a company listed on the Hong Kong Stock Exchange, has announced the appointment of Asian Alliance (HK) CPA Limited as its new auditor following the resignation of BDO Limited. The decision, recommended by the company’s Audit Committee, was made after considering factors such as Asian Alliance’s industry knowledge, technical competence, and market reputation. This change is expected to enhance corporate governance and cost-effectiveness for the company.

New Concepts Holdings Announces Auditor Resignation
Apr 23, 2025

New Concepts Holdings Limited, a company incorporated in the Cayman Islands, announced the resignation of its auditor, BDO Limited, due to disagreements over the audit fee for the financial year ending March 31, 2025. The resignation was influenced by increased audit risks related to changes in the company’s directorship and shareholder structure. The Board of Directors is in the process of appointing a new auditor and believes the resignation will not materially impact the company’s annual audit and results release.

New Concepts Holdings Ltd Secures Shareholder Approval for Finance Lease Transactions
Apr 23, 2025

New Concepts Holdings Ltd announced that during its Extraordinary General Meeting held on April 23, 2025, shareholders approved an ordinary resolution related to the Finance Lease and Incidental Documentation. The resolution was passed with unanimous support, indicating strong shareholder confidence in the proposed transactions, which are expected to impact the company’s financial operations positively.

New Concepts Holdings Announces EGM for Finance Lease Approval
Mar 31, 2025

New Concepts Holdings Limited, a company incorporated in the Cayman Islands, has announced an Extraordinary General Meeting (EGM) to be held on April 23, 2025, in Hong Kong. The meeting will address the approval and ratification of the Finance Lease and Incidental Documentation, along with the authorization for directors to execute necessary actions related to these transactions. This move is significant for the company as it seeks to streamline its financial operations and potentially enhance shareholder value.

New Concepts Holdings Ltd Delays Circular Dispatch for Finance Lease Arrangement
Mar 28, 2025

New Concepts Holdings Ltd, a company incorporated in the Cayman Islands, has announced a delay in the dispatch of a circular related to a major finance lease transaction. The circular, which was initially expected to be sent to shareholders by March 28, 2025, will now be dispatched by March 31, 2025, due to the need for additional time to finalize certain information. This delay may impact stakeholders awaiting further details on the finance lease arrangement and related transactions.

New Concepts Holdings Ltd Announces Major Finance Lease Arrangement
Mar 18, 2025

New Concepts Holdings Ltd, a company incorporated in the Cayman Islands, has announced a major transaction involving a new finance lease arrangement. The company has entered into a Transfer Agreement with Jiangsu Leasing, where Jiangsu Leasing will purchase the leased assets for RMB56,000,000 and lease them back to the company at an interest rate of 6.5067% per annum for five years. This transaction is considered a major one under the Listing Rules, requiring shareholder approval.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 21, 2025