KPa-BM Holdings Ltd (2663) AI Stock Analysis

• Market Cap: HK$211.63M
• Dividend Yield: 31.58%
• Average Volume (3M): 153.00K
• Price to Earnings (P/E): 5.9
• Beta (1Y): -0.14
• Revenue Growth: 0.25%
• EPS Growth: -22.09%
• Country: HK
• Employees: 214
• Sector: Industrials
• Sector Strength: 76
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 556,930,000
• 10 Day Avg. Volume: 96,000
• 30 Day Avg. Volume: 153,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 31.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: HK$0.50 ▲(31.58% Upside)

KPa-BM Holdings Ltd receives a strong overall stock score driven primarily by its attractive valuation, with a low P/E ratio and high dividend yield. The technical analysis supports a positive outlook with bullish indicators. However, the financial performance shows mixed results, with stable profitability but challenges in revenue growth and cash flow generation. The absence of earnings call and corporate events data did not impact the score.

KPa-BM Holdings Ltd Business Overview & Revenue Model

Company Description

KPa-BM Holdings Ltd (2663) is a diversified investment holding company based in Hong Kong, primarily engaged in the manufacturing and distribution of advanced materials and components. The company operates across several sectors, including electronics, telecommunications, and construction, providing innovative solutions and high-quality products that cater to a wide range of industries. KPa-BM Holdings focuses on enhancing technology and efficiency in its operations, ensuring that it remains competitive in a rapidly evolving market.

How the Company Makes Money

KPa-BM Holdings Ltd generates revenue through a combination of product sales, service contracts, and strategic partnerships. Its key revenue streams stem from the production and sale of advanced materials and components, which are supplied to various industries such as electronics and construction. Additionally, the company engages in service contracts that provide ongoing support and maintenance for its products, further enhancing its income. Significant partnerships with leading technology firms and suppliers bolster its market position, allowing for collaborative projects that expand its offerings and customer base. The company's focus on innovation and quality helps maintain customer loyalty and drive repeat business, contributing to its overall financial performance.

KPa-BM Holdings Ltd Financial Statement Overview

Summary

KPa-BM Holdings Ltd demonstrates a mixed financial performance. The income statement shows moderate profitability with challenges in revenue growth. The balance sheet is strong, with low leverage and good returns on equity, indicating financial stability. However, the cash flow statement reveals concerns about cash generation, despite a strong conversion of net income to free cash flow.

Income Statement

KPa-BM Holdings Ltd has shown fluctuating revenue growth with a recent decline of 9.23%. The gross profit margin has decreased over the years, indicating pressure on profitability. However, the company maintains a reasonable net profit margin of 5.42% and an EBIT margin of 6.55%, which are stable but have declined from previous years. Overall, the income statement reflects moderate profitability with some challenges in maintaining growth.

Balance Sheet

The company has a strong balance sheet with a low debt-to-equity ratio of 0.05, indicating low leverage and financial stability. The return on equity is a healthy 13.83%, showcasing effective use of equity to generate profits. The equity ratio stands at 59.68%, reflecting a solid equity base relative to total assets. Overall, the balance sheet is robust, with low financial risk and good returns on equity.

Cash Flow

KPa-BM Holdings Ltd experienced a significant decline in free cash flow growth by 61.18%, which raises concerns about cash generation capabilities. The operating cash flow to net income ratio is 0.19, indicating that cash flow from operations is not fully covering net income. However, the free cash flow to net income ratio is strong at 0.97, suggesting that the company is still able to convert a large portion of its net income into free cash flow. Overall, the cash flow statement shows some weaknesses in cash generation, despite a strong conversion of net income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	735.62M	667.71M	666.04M	568.49M	494.17M	458.49M
Gross Profit	119.73M	107.09M	115.23M	100.77M	60.71M	100.65M
EBITDA	56.90M	52.49M	68.52M	56.18M	25.80M	70.82M
Net Income	47.25M	36.16M	46.38M	37.15M	11.51M	50.17M
Balance Sheet
Total Assets	496.87M	437.82M	526.63M	497.98M	402.13M	431.39M
Cash, Cash Equivalents and Short-Term Investments	134.40M	119.97M	170.23M	124.94M	105.40M	116.65M
Total Debt	7.32M	12.98M	18.76M	54.77M	16.22M	11.66M
Total Liabilities	223.40M	176.42M	234.28M	234.18M	154.76M	163.17M
Stockholders Equity	273.47M	261.40M	292.35M	263.79M	247.37M	268.23M
Cash Flow
Free Cash Flow	82.57M	32.06M	106.85M	3.67M	6.14M	13.86M
Operating Cash Flow	83.91M	33.07M	109.48M	4.65M	7.44M	15.68M
Investing Cash Flow	-486.50K	-381.00K	7.55M	-11.11M	20.46M	-1.81M
Financing Cash Flow	-99.43M	-83.02M	-61.23M	15.78M	-38.75M	-23.43M

KPa-BM Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 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:2663, the sentiment is Positive. The current price of 0.38 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.35, and above the 200-day MA of 0.35, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 69.11 is Neutral, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2663.

KPa-BM Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1420	80 Outperform	HK$197.09M	3.97	8.41%	―	19.15%	106.56%
2663	74 Outperform	HK$211.63M	5.86	13.06%	31.58%	0.25%	-22.09%
Sector *	58 Neutral	HK$14.01B	4.01	-3.70%	5.60%	2.26%	-61.32%
1547	54 Neutral	HK$199.20M	23.71	5.05%	2.01%	-37.64%	2525.00%
1459	54 Neutral	HK$202.68M	37.25	-0.68%	5.26%	-33.92%	-94.74%
1757	53 Neutral	HK$177.60M	162.22	1.19%	―	20.78%	-55.00%
1707	51 Neutral	HK$174.72M	―	-9.34%	―	-40.18%	3.09%

KPa-BM Holdings Ltd Corporate Events

KPa-BM Holdings Announces Annual General Meeting and Key Resolutions

KPa-BM Holdings Limited has announced its upcoming annual general meeting scheduled for August 29, 2025. Key agenda items include the consideration of audited financial statements, re-election of directors, approval of a final dividend, and authorization for the board to fix remuneration. Additionally, the company seeks approval for the directors to exercise powers related to the issuance of shares, which could impact the company’s capital structure and shareholder value.

KPa-BM Holdings Reports Decline in Profits for FY2025

KPa-BM Holdings Limited announced its annual results for the year ended March 31, 2025, reporting a slight increase in revenue to HK$667.7 million compared to the previous year. However, the company experienced a decline in gross profit and net profit margins, with profits for the year decreasing to HK$36.2 million. The company declared a final dividend of HK3.0 cents per share, down from HK4.0 cents the previous year, and did not declare any special dividends. The results indicate a challenging year for the company, with implications for its financial stability and shareholder returns.

KPa-BM Holdings Announces Final Dividend for FY2025

KPa-BM Holdings Limited has announced a final cash dividend of HKD 0.03 per share for the financial year ending March 31, 2025. The dividend will be paid on September 26, 2025, following shareholder approval on August 29, 2025. The ex-dividend date is set for September 3, 2025, with a record date of September 9, 2025. This announcement reflects the company’s commitment to returning value to its shareholders.

KPa-BM Holdings Clarifies Share Option Scheme Details

KPa-BM Holdings Limited, listed on the Hong Kong Stock Exchange, has provided a supplemental announcement regarding its share option scheme as part of its annual report for the year ended 31 March 2024. The company clarified that the total number of shares available for issue under the scheme is 60,000,000, representing 10.77% of the company’s issued shares. This announcement does not alter any other information in the annual report.

KPa-BM Holdings Schedules Board Meeting for Financial Results and Dividend Decision

KPa-BM Holdings Limited has announced a board meeting scheduled for June 25, 2025, to discuss and approve the company’s final results for the fiscal year ending March 31, 2025. The meeting will also consider the declaration of a dividend, which could impact shareholder returns and market positioning.