KPa-BM Holdings Ltd (2663) AI Stock Analysis

• Market Cap: HK$178.22M
• Dividend Yield: 50%
• Average Volume (3M): 241.67K
• Price to Earnings (P/E): 3.8
• Beta (1Y): -0.12
• Revenue Growth: 23.89%
• EPS Growth: 26.19%
• Country: HK
• Employees: 214
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 556,930,000
• 10 Day Avg. Volume: 321,000
• 30 Day Avg. Volume: 241,666
• PEG Ratio: 0.02
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 43.51
• 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: 72 Outperform
• Price Target: ―

KPa-BM Holdings Ltd exhibits strong financial performance with healthy revenue growth, effective cost management, and robust cash flow generation, which underpin its stability and growth potential. However, technical indicators suggest a bearish trend, with the stock being oversold. Despite this, the valuation is compelling due to a low P/E ratio and high dividend yield, offering significant upside potential for value investors.

KPa-BM Holdings Ltd Business Overview & Revenue Model

Company Description

KPa-BM Holdings Ltd (2663) is a company engaged in the provision of formwork and scaffolding services primarily within the construction industry. The company offers a range of integrated solutions including design, manufacturing, and installation of formwork systems, which are essential for constructing various building structures. Their services cater to residential, commercial, and infrastructure projects, ensuring that they meet the diverse needs of their clients.

How the Company Makes Money

KPa-BM Holdings Ltd generates revenue primarily through the provision of formwork and scaffolding services. The company charges clients for the design, manufacturing, and installation of formwork systems, which are critical for construction projects. Revenue is driven by contracts with developers, construction companies, and infrastructure firms seeking efficient and reliable formwork solutions. Additionally, KPa-BM Holdings may engage in partnerships with construction firms to secure large-scale projects, contributing to its revenue stream.

KPa-BM Holdings Ltd Financial Statement Overview

Summary

KPa-BM Holdings Ltd shows strong revenue growth and effective cost management with a notable gross profit margin of 17.3%. The balance sheet is robust with low leverage and high equity, reflecting stability. Exceptional cash flow management further enhances financial health, positioning the company well for future growth.

Income Statement

KPa-BM Holdings Ltd shows strong revenue growth with a notable gross profit margin of 17.3% in the latest year. The net profit margin improved to 7.0%, up from 6.5% the previous year. This indicates an effective cost management strategy. However, EBIT and EBITDA margins remain moderate at 8.2% and 10.3% respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.064, indicating low financial leverage and risk. The equity ratio is robust at 55.5%, reflecting strong financial stability. Return on equity stands at 15.9%, showcasing effective utilization of shareholder funds to generate profit.

Cash Flow

KPa-BM Holdings Ltd exhibits excellent cash flow management, with a substantial increase in free cash flow to HKD 106.85 million from HKD 3.67 million. The operating cash flow to net income ratio is solid, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is also strong, highlighting the company's ability to generate cash from its operations.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
735.62M	666.04M	568.49M	494.17M	458.49M	733.35M
	Gross Profit
119.73M	115.23M	100.77M	60.71M	100.65M	109.70M
	EBIT
54.91M	54.69M	44.65M	15.63M	53.06M	60.41M
	EBITDA
56.90M	68.52M	56.18M	25.80M	70.82M	74.38M
	Net Income Common Stockholders
47.25M	46.38M	37.15M	11.51M	50.17M	53.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
134.40M	170.23M	124.94M	105.40M	116.65M	125.84M
	Total Assets
496.87M	526.63M	497.98M	402.13M	431.39M	433.94M
	Total Debt
7.32M	18.76M	54.77M	16.22M	11.66M	17.89M
	Net Debt
-125.38M	-151.47M	-60.05M	-89.18M	-104.98M	-107.95M
	Total Liabilities
223.40M	234.28M	234.18M	154.76M	163.17M	202.06M
	Stockholders Equity
273.47M	292.35M	263.79M	247.37M	268.23M	231.87M
Cash Flow		Free Cash Flow
82.57M	106.85M	3.67M	6.14M	13.86M	81.28M
	Operating Cash Flow
83.91M	109.48M	4.65M	7.44M	15.68M	83.59M
	Investing Cash Flow
633.00K	7.55M	-11.11M	20.46M	-1.81M	2.16M
	Financing Cash Flow
-71.90M	-61.23M	15.78M	-38.75M	-23.43M	-42.36M

KPa-BM Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 50DMA: Positive
• 100DMA: Negative
• 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:2663, the sentiment is Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.31, and below the 200-day MA of 0.35, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.02 is Neutral, neither overbought nor oversold. The STOCH value of 38.25 is Neutral, 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
1538	76 Outperform	HK$277.73M	2.88	8.86%	7.69%	2.04%	8.36%
2663	72 Outperform	HK$178.22M	3.77	17.39%	50.00%	23.89%	26.19%
1675	71 Outperform	€8.06B	13.29	8.12%	4.79%	-17.09%	-0.39%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
1610	62 Neutral	HK$7.06B	12.17	5.82%	―	38.41%	―
1728	52 Neutral	$1.49B	―		―	-15.73%	-73.42%
1939	43 Neutral	HK$1.55B	―	-11.99%	―	-3.32%	-107.34%

KPa-BM Holdings Ltd Corporate Events

KPa-BM Holdings Announces Key Leadership Changes

KPa-BM Holdings Limited has announced a change in its company secretary and authorized representative roles. Mr. Chan Sun Kwong has resigned from these positions, effective April 1, 2025, with no disagreements reported with the board. Ms. Cheung Ka Wai, currently the financial controller with over 10 years of experience in financial management and auditing, will assume these roles. This transition reflects the company’s ongoing commitment to strong corporate governance and leadership continuity.

KPa-BM Holdings Ltd Enhances Governance with New Auditor Appointment

KPa-BM Holdings Ltd announced a change of auditor from BDO Limited to Beijing Xinghua Caplegend CPA Limited to enhance corporate governance. The decision was made after considering the professional competence and industry experience of potential auditors, with the aim of improving governance and serving the best interests of the company and its shareholders.