Ching Lee Holdings Ltd. (3728) AI Stock Analysis

• Market Cap: HK$54.70M
• Dividend Yield: N/A
• Average Volume (3M): 157.33K
• Price to Earnings (P/E): 6.4
• Beta (1Y): 0.50
• Revenue Growth: 46.37%
• EPS Growth: -22.94%
• Country: HK
• Employees: 186
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,013,000,000
• 10 Day Avg. Volume: 98,000
• 30 Day Avg. Volume: 157,333
• PEG Ratio: -0.35
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 1.05
• 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: 68 Neutral
• Price Target: HK$0.07 ▲(20.00% Upside)

Ching Lee Holdings Ltd. scores moderately due to strong revenue growth and undervaluation, despite low profitability margins and cash flow volatility. Positive technical indicators support a slightly bullish outlook, but caution is advised due to operational efficiency challenges.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for products and effective market expansion, supporting long-term business sustainability.

Improved Leverage Management

Improved leverage management enhances financial stability, reducing risk and potentially lowering borrowing costs over time.

Economies of Scale

Economies of scale allow for competitive pricing and cost efficiency, strengthening market position and profitability potential.

Negative Factors

Low Profitability Margins

Low profitability margins suggest challenges in cost management, which could impact long-term financial health and investment capacity.

Cash Flow Volatility

Significant cash flow volatility can strain liquidity and limit the ability to invest in growth opportunities or manage debt effectively.

Operational Efficiency Challenges

Limited operational efficiency may hinder profitability improvements and competitiveness, affecting long-term growth prospects.

Ching Lee Holdings Ltd. Business Overview & Revenue Model

Company Description

Ching Lee Holdings Ltd. (3728) is a Hong Kong-based investment holding company primarily engaged in the manufacturing and trading of plastic products, particularly in the household and industrial segments. The company operates within the plastics sector, providing a diverse range of offerings that include containers, household items, and various custom plastic solutions tailored to meet client specifications. Ching Lee Holdings also explores opportunities in related sectors to enhance its product portfolio and market reach.

How the Company Makes Money

Ching Lee Holdings Ltd. generates revenue primarily through the production and sale of its plastic products to both local and international markets. The company benefits from economies of scale in its manufacturing processes, allowing it to maintain competitive pricing while ensuring quality. Key revenue streams include direct sales to retailers, wholesalers, and distributors, as well as contracts with industrial clients for customized products. Additionally, strategic partnerships with suppliers and distributors enable Ching Lee to expand its market presence and enhance distribution efficiency. The company may also derive income from value-added services, such as product design and development, which cater to specialized customer needs.

Ching Lee Holdings Ltd. Financial Statement Overview

Summary

Ching Lee Holdings Ltd. shows strong revenue growth but struggles with low profitability margins and cash flow volatility. Improved leverage management is noted, but overall financial stability and efficiency need enhancement.

Income Statement

Ching Lee Holdings Ltd. has shown a strong revenue growth rate of 25.03% in the most recent year, indicating robust top-line expansion. However, the gross profit margin of 6.79% and net profit margin of 0.74% are relatively low, suggesting challenges in cost management and profitability. The EBIT and EBITDA margins are also modest at 1.88% and 2.22%, respectively, indicating limited operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.97 from higher levels in previous years, reflecting better leverage management. However, the return on equity (ROE) of 6.89% is moderate, indicating average profitability relative to equity. The equity ratio of 21.58% suggests a moderate reliance on equity financing, but there is room for improvement in strengthening the equity base.

Cash Flow

The free cash flow growth rate is negative at -322.15%, indicating significant volatility and potential cash flow management issues. The operating cash flow to net income ratio of 0.08 suggests weak cash generation relative to net income, while the free cash flow to net income ratio of 0.96 indicates that most of the net income is being converted into free cash flow, albeit with fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.64B	1.28B	896.69M	708.78M	536.50M	908.81M
Gross Profit	110.89M	87.05M	76.58M	71.67M	24.24M	61.33M
EBITDA	29.86M	28.43M	26.75M	23.33M	-14.59M	24.06M
Net Income	12.25M	9.42M	10.69M	11.56M	-18.16M	11.54M
Balance Sheet
Total Assets	633.14M	633.14M	580.86M	582.41M	321.80M	423.89M
Cash, Cash Equivalents and Short-Term Investments	50.11M	50.11M	68.01M	82.37M	32.28M	83.76M
Total Debt	133.08M	133.08M	166.16M	140.29M	70.20M	93.29M
Total Liabilities	496.46M	496.46M	453.85M	465.86M	217.06M	297.96M
Stockholders Equity	136.68M	136.68M	127.01M	116.55M	104.74M	125.94M
Cash Flow
Free Cash Flow	30.85M	38.63M	-29.68M	-10.99M	-9.16M	74.97M
Operating Cash Flow	40.39M	40.39M	-28.57M	-10.62M	-9.16M	80.27M
Investing Cash Flow	13.52M	13.52M	717.00K	-19.79M	7.34M	-1.47M
Financing Cash Flow	-46.80M	-46.80M	13.86M	60.16M	-29.47M	-76.85M

Ching Lee Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3728, the sentiment is Negative. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, below the 50-day MA of 0.07, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 45.51 is Neutral, neither overbought nor oversold. The STOCH value of 46.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3728.

Ching Lee Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3728	68 Neutral	HK$54.70M	6.43	6.32%	―	46.37%	-22.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8366	49 Neutral	HK$61.51M	65.00	―	―	-7.34%	―
8616	47 Neutral	HK$50.00M	-3.76	-5.13%	―	8.51%	-217.24%
2110	46 Neutral	HK$51.12M	―	-58.76%	―	-9.20%	32.32%
8423	45 Neutral	HK$39.20M	-3.18	-28.49%	―	-1.68%	-417.79%
6189	38 Underperform	HK$17.35M	―	―	―	―	―

Ching Lee Holdings Ltd. Corporate Events

Ching Lee Holdings Ltd. Reports Revenue Surge Amid Declining Profitability

Ching Lee Holdings Ltd. reported a significant revenue increase of 38.2% to approximately HK$791.9 million for the six months ending September 2025, compared to the same period in 2024. However, the net profit decreased by 23.3% to HK$2.9 million, and the company decided not to distribute an interim dividend. This financial performance reflects a mixed outcome, with strong revenue growth but declining profitability, which may impact stakeholder confidence and the company’s market positioning.

Ching Lee Holdings to Review Interim Results and Dividend Proposal

Ching Lee Holdings Limited has announced a board meeting scheduled for November 24, 2025, to discuss and approve the unaudited interim results for the six months ending September 30, 2025. The meeting will also consider the recommendation for an interim dividend, which could impact the company’s financial strategy and shareholder returns.