KPa-BM Holdings Ltd (2663) AI Stock Analysis

• Market Cap: HK$164.29M
• Dividend Yield: 26.92%
• Average Volume (3M): 152.00K
• Price to Earnings (P/E): 4.5
• Beta (1Y): -0.16
• Revenue Growth: -32.31%
• EPS Growth: -51.89%
• Country: HK
• Employees: 214
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 556,930,000
• 10 Day Avg. Volume: 147,000
• 30 Day Avg. Volume: 152,000
• PEG Ratio: -0.24
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 5.99
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$0.28 ▲(8.85% Upside)

KPa-BM Holdings Ltd's overall stock score is driven by a strong valuation, with a low P/E ratio and high dividend yield suggesting the stock is attractively priced. However, the financial performance indicates challenges in revenue growth and cash flow generation, while technical analysis points to bearish momentum. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage enhances financial stability, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Effective Use of Equity

High return on equity indicates efficient management and the ability to generate profits from shareholders' investments, supporting long-term value creation.

Strong Free Cash Flow Conversion

Strong conversion of net income to free cash flow suggests effective cash management, providing funds for reinvestment and shareholder returns.

Negative Factors

Declining Revenue Growth

Declining revenue growth can indicate challenges in market demand or competitive positioning, potentially impacting future profitability and expansion.

Decreasing Gross Profit Margin

A decreasing gross profit margin suggests rising costs or pricing pressures, which can erode profitability and limit the ability to invest in growth.

Weak Cash Generation

Weak cash generation limits financial flexibility and the ability to fund operations and growth initiatives, posing a risk to long-term sustainability.

KPa-BM Holdings Ltd Business Overview & Revenue Model

Company Description

KPa-BM Holdings Ltd (2663) is a Hong Kong-based investment holding company primarily engaged in the sectors of manufacturing and trading of construction materials. The company focuses on providing high-quality precast concrete products and related services, catering to the growing demand in the construction industry. Its core offerings include precast concrete components, which are essential for various construction projects, including residential, commercial, and infrastructure developments.

How the Company Makes Money

KPa-BM Holdings Ltd generates revenue primarily through the sale of its precast concrete products to construction firms and developers. The company operates on a business-to-business (B2B) model, securing contracts with construction companies that require large quantities of precast materials for their projects. Key revenue streams include direct sales of precast concrete products, custom fabrication services, and ongoing maintenance or support contracts. Additionally, the company may engage in strategic partnerships with large construction firms, which can lead to long-term contracts and a steady flow of income. Factors contributing to its earnings include the overall health of the construction industry, demand for infrastructure development, and the company's ability to innovate and provide high-quality products.

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	807.83M	667.71M	666.04M	568.49M	494.17M	458.49M
Gross Profit	132.05M	107.09M	115.23M	100.77M	60.71M	100.65M
EBITDA	67.54M	52.49M	68.52M	56.18M	25.80M	70.82M
Net Income	41.69M	36.16M	46.38M	37.15M	11.51M	50.17M
Balance Sheet
Total Assets	437.82M	437.82M	526.63M	497.98M	402.13M	431.39M
Cash, Cash Equivalents and Short-Term Investments	119.97M	119.97M	170.23M	124.94M	105.40M	116.65M
Total Debt	12.98M	12.98M	18.76M	54.77M	16.22M	11.66M
Total Liabilities	176.42M	176.42M	234.28M	234.18M	154.76M	163.17M
Stockholders Equity	261.40M	261.40M	292.35M	263.79M	247.37M	268.23M
Cash Flow
Free Cash Flow	32.06M	32.06M	106.85M	3.67M	6.14M	13.86M
Operating Cash Flow	33.07M	33.07M	109.48M	4.65M	7.44M	15.68M
Investing Cash Flow	-571.50K	-381.00K	7.55M	-11.11M	20.46M	-1.81M
Financing Cash Flow	-124.52M	-83.02M	-61.23M	15.78M	-38.75M	-23.43M

KPa-BM Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.27, below the 50-day MA of 0.29, and below the 200-day MA of 0.31, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 32.25 is Neutral, neither overbought nor oversold. The STOCH value of 22.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	74 Outperform	HK$224.89M	3.20	11.37%	―	20.41%	188.08%
2663	64 Neutral	HK$164.29M	4.55	8.56%	26.92%	-32.31%	-51.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1757	56 Neutral	HK$756.00M	700.00	1.30%	―	78.48%	-33.33%
1459	49 Neutral	HK$141.34M	-11.94	-0.68%	7.14%	-33.92%	-94.74%
1547	45 Neutral	HK$180.00M	21.43	5.64%	2.72%	27.88%	1.69%
1707	41 Neutral	HK$63.84M	-4.13	-9.58%	―	3.97%	14.02%

KPa-BM Holdings Ltd Corporate Events

KPa-BM Holdings Reports Decline in Interim Profits

KPa-BM Holdings Limited, a company listed on the Hong Kong Stock Exchange, reported its interim financial results for the six months ending September 30, 2025. The company experienced a decline in revenue from HK$387,480,000 in 2024 to HK$217,711,000 in 2025, resulting in a decreased profit of HK$11,635,000 compared to HK$25,085,000 in the previous year. Despite the reduced earnings, the company managed to maintain a positive total comprehensive income of HK$12,215,000. The financial position shows a decrease in current assets and liabilities, indicating a potential impact on liquidity and operational flexibility.

KPa-BM Holdings Ltd Updates Nomination Committee Terms to Strengthen Governance

KPa-BM Holdings Ltd has updated the terms of reference for its Nomination Committee, emphasizing the importance of independent non-executive directors in its governance structure. The committee is tasked with reviewing the board’s composition, assessing director independence, and making recommendations on board appointments, re-appointments, and succession planning. This move aims to enhance corporate governance and ensure the board aligns with the company’s strategic goals.

KPa-BM Holdings Schedules Board Meeting to Review Financials and Dividend

KPa-BM Holdings Limited has announced that its Board of Directors will meet on November 28, 2025, to review and approve the company’s financial results for the six months ending September 30, 2025, and to consider the declaration of a dividend. This meeting is significant as it will provide insights into the company’s financial health and potential shareholder returns, impacting stakeholders’ perceptions and the company’s market positioning.

KPa-BM Holdings Ltd Issues Profit Warning Amid Revenue Decline

KPa-BM Holdings Ltd has issued a profit warning, indicating an expected decrease of at least 50% in consolidated profit after tax for the six months ended September 30, 2025, compared to the same period in 2024. This decline is attributed to reduced revenue from structural engineering works, as many outstanding contracts were completed and new projects acquired had smaller contract sums. The company managed to partially offset the decline in gross profit through cost-saving measures in administrative and operating expenses. However, potential impairment losses on contract assets and receivables could further impact profits, though these are non-cash items and will not affect the company’s cash position.