New Concepts Holdings Ltd (2221) AI Stock Analysis

• Market Cap: HK$217.84M
• Dividend Yield: N/A
• Average Volume (3M): 597.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 38.15%
• EPS Growth: -1533.02%
• Country: HK
• Employees: 398
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.11
• Shares Outstanding: 229,303,200
• 10 Day Avg. Volume: 315,760
• 30 Day Avg. Volume: 597,880
• PEG Ratio: <0.01
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 3.03
• 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: 51 Neutral
• Price Target: HK$0.96 ▼(-8.17% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is held back primarily by weak financial performance—loss-making operations, margin pressure, and softer cash flow—despite strong recent revenue growth. Technicals are supportive with price above major moving averages and mildly positive momentum, but valuation is constrained by negative earnings (negative P/E) and no dividend yield data.

Positive Factors

Strong revenue growth

A sustained ~36% topline expansion demonstrates the company’s ability to scale its investment, property development and services mix. Durable revenue expansion provides capacity to invest in operations, amortize fixed costs and support medium-term recovery of margins if cost trends are managed.

Diversified business model

A multi‑sector portfolio (technology, real estate, financial services) reduces single‑market exposure and enables cross‑business synergies. Diversification can stabilize cashflows across cycles, sustain revenue even if one segment softens, and supports more resilient medium‑term fundamentals.

Improving leverage management

Progress in lowering leverage reduces refinancing and interest risks and improves financial flexibility. Improved debt metrics support the firm’s ability to fund development projects and investments without immediate dilution, strengthening balance sheet durability over coming quarters.

Negative Factors

Negative profitability margins

Negative net profit and EBIT margins, alongside a falling gross margin, indicate persistent operational inefficiencies or cost pressure. Without margin recovery, revenue growth may not translate into sustainable earnings, limiting reinvestment and long‑term shareholder value creation.

Weak cash conversion

Declining free cash flow growth and low conversion of net income into operating cash constrain liquidity for capex, dividends or debt paydown. Structural cash conversion weakness increases reliance on external financing and raises refinancing risk during stressed market periods.

Negative return on equity

A negative ROE signals the company is not currently creating shareholder value from equity capital. Persisting negative ROE can hamper access to capital, reduce investor confidence, and suggests structural issues in capital allocation or low operational efficiency needing sustained remediation.

New Concepts Holdings Ltd Business Overview & Revenue Model

Company Description

New 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 Money

New Concepts Holdings Ltd generates revenue through multiple channels, primarily by investing in and managing a diverse array of subsidiaries and joint ventures across its targeted sectors. The company earns income from its investment portfolio, which includes capital gains and dividends from equity investments. Additionally, revenue is derived from property development projects, where it profits from sales or leases of developed properties. The financial services segment adds to the earnings through advisory fees and commissions. Strategic partnerships with other firms in technology and real estate also enhance its revenue streams by facilitating collaborative projects and expanding market reach.

New Concepts Holdings Ltd Financial Statement Overview

Summary

Strong latest-year revenue growth (35.97%) is outweighed by weak profitability (negative net profit and EBIT margins), declining gross margin, and pressured cash generation (declining free cash flow and low operating cash flow to net income). Balance sheet leverage has improved but remains relatively high, and ROE is negative.

Income Statement

The company has shown a significant revenue growth rate of 35.97% in the latest year, which is a positive indicator. However, the profitability metrics are concerning, with negative net profit and EBIT margins, indicating operational inefficiencies and challenges in maintaining profitability. The gross profit margin has also declined over the years, suggesting pressure on cost management.

Balance Sheet

The debt-to-equity ratio has improved from previous years, indicating better leverage management, but it remains relatively high compared to industry norms. The return on equity is negative, reflecting the company's struggles to generate returns for shareholders. The equity ratio is stable, showing a reasonable proportion of equity financing.

Cash Flow

The company experienced a significant decline in free cash flow growth, indicating potential liquidity issues. The operating cash flow to net income ratio is low, suggesting challenges in converting income into cash. However, the free cash flow to net income ratio is relatively healthy, indicating some ability to generate cash relative to net income.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	929.24M	628.24M	545.19M	654.85M	591.52M
Gross Profit	58.99M	61.09M	53.56M	82.80M	23.66M
EBITDA	-48.97M	73.86M	23.18M	78.98M	8.02M
Net Income	-80.71M	2.86M	-20.80M	5.50M	-55.00M
Balance Sheet
Total Assets	1.21B	1.10B	1.03B	812.60M	1.08B
Cash, Cash Equivalents and Short-Term Investments	115.17M	37.32M	134.54M	117.46M	66.69M
Total Debt	254.30M	204.50M	218.87M	80.75M	150.95M
Total Liabilities	833.93M	637.59M	626.99M	573.16M	947.70M
Stockholders Equity	319.77M	399.25M	359.38M	191.04M	100.48M
Cash Flow
Free Cash Flow	20.16M	-53.94M	-252.41M	86.19M	12.63M
Operating Cash Flow	36.14M	-33.75M	-14.14M	102.70M	23.24M
Investing Cash Flow	-60.86M	-49.57M	-263.89M	-9.04M	12.91M
Financing Cash Flow	102.69M	5.03M	307.58M	-43.76M	483.00K

New Concepts Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.04
• 50DMA: Negative
• 100DMA: Negative
• 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:2221, the sentiment is Negative. The current price of 1.04 is above the 20-day moving average (MA) of 0.98, above the 50-day MA of 0.99, and above the 200-day MA of 0.90, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1793	52 Neutral	HK$260.00M	6.09	3.15%	5.63%	-9.62%	-2.68%
2193	52 Neutral	HK$109.09M	2.34	-6.89%	―	-1.91%	18.30%
2221	51 Neutral	HK$217.84M	-2.28	-23.21%	―	38.15%	-1533.02%
1707	47 Neutral	HK$75.60M	-5.35	-9.80%	―	3.97%	14.02%
1920	43 Neutral	HK$393.12M	507.61	-104.46%	―	62.98%	67.20%

New Concepts Holdings Ltd Corporate Events

New Concepts Holdings Raises HK$34.1 Million Through Share Subscription to Reduce Debt and Bolster Working Capital

New Concepts Holdings Limited has completed a share subscription under its general mandate, issuing 34,240,000 new shares at HK$1.0 each, representing about 14.93% of its enlarged share capital. The transaction raised gross proceeds of HK$34.24 million and net proceeds of approximately HK$34.11 million, which the company plans to use primarily to repay overdue bond, lease and other payables and to strengthen its general working capital, resulting in a dilution of existing shareholders but improving the group’s liquidity and balance sheet position.

The most recent analyst rating on (HK:2221) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on New Concepts Holdings Ltd stock, see the HK:2221 Stock Forecast page.

New Concepts Holdings Extends Deadline for Completion of Share Subscriptions

New Concepts Holdings Limited has announced a procedural update to its previously disclosed share subscription arrangements. The company and the subscribing investors have agreed to extend the deadline for satisfying the conditions attached to these new share subscriptions, pushing the long stop date from 30 January 2026 to 6 February 2026, with the option of further extension by mutual written agreement. All other terms of the subscription agreements remain unchanged, and the company has emphasized that the new information does not alter the substance of its earlier announcements on the transaction, indicating that the capital-raising process is ongoing but requires additional time to complete the necessary conditions.

The most recent analyst rating on (HK:2221) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on New Concepts Holdings Ltd stock, see the HK:2221 Stock Forecast page.

New Concepts Holdings Extends Share Subscription Deadline and Clarifies Proceeds Use

New Concepts Holdings Limited has extended the long stop date for the completion of its previously announced share subscription agreements from 16 January 2026 to 30 January 2026, giving the company and its subscribers additional time to satisfy the conditions precedent while keeping all other contractual terms unchanged. The company also corrected an earlier typographical error on the intended use of proceeds, clarifying that approximately HK$20.5 million (rather than HK$24.5 million) will be used to repay overdue bonds, lease liabilities and payables due within three months, with about HK$13.6 million earmarked for general working capital such as operating expenses, staff costs and professional fees to be fully utilised by February 2026, signalling a focus on shoring up liquidity and meeting near-term obligations.

The most recent analyst rating on (HK:2221) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on New Concepts Holdings Ltd stock, see the HK:2221 Stock Forecast page.

New Concepts Holdings Plans HK$34 Million Share Subscription at Premium

New Concepts Holdings Ltd has agreed to issue 34.24 million new shares under its existing general mandate, raising gross proceeds of HK$34.24 million at HK$1.00 per share, a modest premium to the recent market price, subject to fulfillment of conditions in the subscription agreements. The new shares will represent about 17.55% of the current issued share capital, or 14.93% post-issuance, with net proceeds of approximately HK$34.11 million and minimal issuance costs, signalling a sizeable equity fundraising that will dilute existing shareholders but strengthen the company’s capital base if completed, with one of the identified subscribers being Beijing Xiangyi Asset Management Co., Ltd., an independent third party investor.

The most recent analyst rating on (HK:2221) stock is a Hold with a HK$1.00 price target. To see the full list of analyst forecasts on New Concepts Holdings Ltd stock, see the HK:2221 Stock Forecast page.