New Concepts Holdings Ltd (2221) AI Stock Analysis

• Market Cap: HK$125.28M
• Dividend Yield: N/A
• Average Volume (3M): 14.49M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 21.44%
• EPS Growth: 65.22%
• Country: HK
• Employees: 398
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,606,132,100
• 10 Day Avg. Volume: 5,395,200
• 30 Day Avg. Volume: 14,493,333
• PEG Ratio: 0.11
• Price to Book (P/B): 2.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.70
• 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

• Rating: 43 Neutral
• 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 Business Overview & Revenue Model

Company Description

New Concepts Holdings Ltd (2221) is a Hong Kong-based investment holding company primarily engaged in the construction business. The company operates through various segments, including the foundation works, construction works, and machinery leasing businesses. Its core services involve foundation piling, site formation, and other ancillary services. New Concepts Holdings Ltd is committed to delivering high-quality construction solutions and has built a reputation for reliability and efficiency in the industry.

How the Company Makes Money

New 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

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

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

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.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
683.43M	628.24M	545.19M	654.85M	591.52M	648.62M
	Gross Profit
54.16M	61.09M	53.56M	82.80M	23.66M	46.98M
	EBIT
-41.73M	-37.87M	-42.05M	-15.26M	-90.14M	-121.81M
	EBITDA
-16.61M	73.86M	23.18M	13.65M	8.02M	-62.48M
	Net Income Common Stockholders
-5.55M	2.86M	-20.80M	5.50M	-55.00M	-295.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
53.39M	37.32M	134.54M	117.46M	66.69M	40.62M
	Total Assets
1.20B	1.10B	1.03B	812.60M	1.08B	1.30B
	Total Debt
359.86M	204.50M	218.87M	80.75M	150.95M	425.44M
	Net Debt
306.47M	167.18M	84.33M	-36.70M	84.26M	395.63M
	Total Liabilities
747.04M	637.59M	626.99M	573.16M	947.70M	1.15B
	Stockholders Equity
392.04M	399.25M	359.38M	191.04M	100.48M	110.30M
Cash Flow		Free Cash Flow
-105.43M	-53.94M	-252.41M	86.19M	12.63M	98.96M
	Operating Cash Flow
-97.22M	-33.75M	-14.14M	102.70M	23.24M	105.08M
	Investing Cash Flow
-29.79M	-49.57M	-263.89M	-9.04M	12.91M	1.17M
	Financing Cash Flow
88.64M	5.03M	307.58M	-43.76M	483.00K	-118.40M

New Concepts Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2221, the sentiment is Positive. The current price of 0.08 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.05, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 63.12 is Neutral, neither overbought nor oversold. The STOCH value of 62.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2221.

New Concepts Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1618	75 Outperform	€60.51B	5.14	5.56%	5.20%	-19.10%	-30.15%
0384	72 Outperform	$41.19B	13.12	5.56%	3.97%	-5.40%	8.76%
3311	71 Outperform	$63.39B	6.46	14.62%	4.75%	1.21%	2.15%
Sector *	66 Neutral	$4.44B	12.06	5.34%	6.22%	4.17%	-11.81%
1193	59 Neutral	$48.31B	11.82	9.94%	6.78%	1.39%	-21.74%
3800	51 Neutral	$24.78B	―	-11.91%	―	-56.32%	-272.70%
2221	43 Neutral	HK$125.28M	―	-1.43%	―	21.44%	65.22%

New Concepts Holdings Ltd Corporate Events

New Concepts Holdings Appoints Asian Alliance as New Auditor

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

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

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

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

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

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.