Ching Lee Holdings Ltd. (3728) AI Stock Analysis

• Market Cap: HK$92.18M
• Dividend Yield: N/A
• Average Volume (3M): 1.96M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.68
• Revenue Growth: 42.91%
• EPS Growth: -12.26%
• Country: HK
• Employees: 186
• Sector: Industrials
• Sector Strength: 80
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,013,000,000
• 10 Day Avg. Volume: 1,256,000
• 30 Day Avg. Volume: 1,962,666
• 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: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

Ching Lee Holdings Ltd. has a balanced stock score driven by strong technical indicators and reasonable valuation. However, financial performance highlights challenges in profitability and cash flow management, which weigh down the overall score. The absence of earnings call data and corporate events limits additional insights.

Ching Lee Holdings Ltd. Business Overview & Revenue Model

Company Description

Ching Lee Holdings Limited, an investment holding company, engages in the provision of construction, consultancy, and project management services in Hong Kong. The company undertakes substructure building works; superstructure building works; and repair, maintenance, alteration, and addition works. It is also involved in property holding activities. The company was founded in 1998 and is headquartered in Jordan, Hong Kong. Ching Lee Holdings Limited is a subsidiary of JT Glory Limited.

How the Company Makes Money

Ching Lee Holdings generates revenue through the sale of construction materials and prefabricated components to contractors and developers in the construction industry. The company's key revenue streams include the production and distribution of concrete products, such as ready-mix concrete and precast concrete elements, as well as steel products used in construction projects. Additionally, Ching Lee Holdings may enter into significant partnerships with construction firms and governmental projects, which can lead to substantial contracts and long-term agreements, enhancing its revenue stability. The company also benefits from economies of scale in manufacturing and may explore opportunities in real estate development to diversify its income sources.

Ching Lee Holdings Ltd. Financial Statement Overview

Summary

Ching Lee Holdings Ltd. exhibits strong revenue growth but faces challenges with low profitability margins and operational efficiency. The balance sheet shows improved leverage, but profitability and equity strength are moderate. Cash flow metrics highlight volatility and potential cash management issues.

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	1.02B	1.28B	896.69M	708.78M	536.50M	908.81M
Gross Profit	81.00M	87.05M	76.58M	71.67M	24.24M	61.33M
EBITDA	25.67M	28.43M	26.75M	23.33M	-14.59M	24.06M
Net Income	11.04M	9.42M	10.69M	11.56M	-18.16M	11.54M
Balance Sheet
Total Assets	630.31M	633.14M	580.86M	582.41M	321.80M	423.89M
Cash, Cash Equivalents and Short-Term Investments	113.76M	50.11M	45.97M	57.37M	27.25M	58.55M
Total Debt	188.24M	133.08M	166.16M	140.29M	70.20M	93.29M
Total Liabilities	499.53M	496.46M	453.85M	465.86M	217.06M	297.96M
Stockholders Equity	130.77M	136.68M	127.01M	116.55M	104.74M	125.94M
Cash Flow
Free Cash Flow	-17.39M	38.63M	-29.68M	-10.99M	-9.16M	74.97M
Operating Cash Flow	-16.28M	40.39M	-28.57M	-10.62M	-9.16M	80.27M
Investing Cash Flow	26.01M	13.52M	717.00K	-19.79M	7.34M	-1.47M
Financing Cash Flow	16.51M	-46.80M	13.86M	60.16M	-29.47M	-76.85M

Ching Lee Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3728, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.07, above the 50-day MA of 0.05, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 73.24 is Negative, neither overbought nor oversold. The STOCH value of 84.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$92.18M	9.78	7.15%	―	42.91%	-12.26%
Sector *	58 Neutral	HK$14.10B	4.53	-3.70%	5.60%	2.27%	-65.55%
8423	56 Neutral	HK$43.20M	2.76	-8.14%	―	40.98%	-222.22%
8616	49 Neutral	HK$40.00M	―	-7.37%	―	-2.10%	-1562.50%
8366	46 Neutral	HK$64.67M	70.00		―	-7.34%	―
2110	44 Neutral	HK$39.60M	―	-44.85%	―	8.09%	61.44%
6189	38 Underperform	HK$17.35M	―		―	―	―

Ching Lee Holdings Ltd. Corporate Events

Ching Lee Holdings Announces 2025 AGM and Key Resolutions

Ching Lee Holdings Limited has announced its upcoming annual general meeting, scheduled for September 2, 2025, in Hong Kong. The meeting will address ordinary resolutions including the adoption of financial statements, re-election of directors, and re-appointment of BDO Limited as the independent auditor. Additionally, a mandate will be considered for the directors to issue shares or convertible securities, with certain restrictions.

Ching Lee Holdings Proposes Modernization of Articles of Association

Ching Lee Holdings Limited has announced proposed amendments to its Articles of Association, aiming to modernize its governance structure. These amendments include provisions for electronic voting and hybrid general meetings, aligning with current market practices and regulatory requirements. The changes are pending approval at the upcoming annual general meeting.

Ching Lee Holdings Ltd. Reports Annual Financial Results for 2025

Ching Lee Holdings Ltd. announced its annual results for the year ended 31 March 2025, reporting a revenue increase to HK$1,281,422,000 from HK$896,689,000 in the previous year. Despite the revenue growth, the company’s profit for the year slightly decreased to HK$9,423,000 from HK$10,692,000, indicating increased costs and expenses impacting the bottom line. The announcement highlights the company’s financial position with total assets less current liabilities standing at HK$138,174,000, reflecting a stable yet challenging financial environment.

Ching Lee Holdings Announces Board Reshuffle

Ching Lee Holdings Ltd. announced significant changes in its board composition, including the redesignation of Mr. Tong Hin Sum Paul from an independent non-executive director to a non-executive director, effective June 30, 2025. Additionally, Dr. Wai Yin Wah Agnes has been appointed as an independent non-executive director. These changes reflect the company’s strategic adjustments in leadership, potentially impacting its governance and stakeholder relations.

Ching Lee Holdings Announces Board Composition and Committee Roles

Ching Lee Holdings Limited has announced the composition of its board of directors, which includes executive directors, independent non-executive directors, and a non-executive director. The announcement also details the roles and functions of the board members within three key committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee. This update is significant as it provides clarity on the governance structure of the company, potentially impacting its strategic direction and stakeholder confidence.

Ching Lee Holdings Limited Establishes Remuneration Committee to Strengthen Governance

Ching Lee Holdings Limited has announced the establishment of a Remuneration Committee within its Board of Directors, which was resolved in a meeting held on March 10, 2016. The committee will consist of a minimum of three members, primarily independent non-executive directors, to ensure impartiality in decision-making. This move is expected to enhance the company’s governance structure and provide a more robust framework for managing executive remuneration, potentially impacting stakeholder confidence positively.

Ching Lee Holdings to Announce Annual Results and Dividend Consideration

Ching Lee Holdings Limited has announced a board meeting scheduled for June 30, 2025, to discuss and approve the annual financial results for the year ending March 31, 2025, and to consider the recommendation for a final dividend. This meeting is significant as it will provide insights into the company’s financial health and potential returns to shareholders, impacting its market positioning and stakeholder interests.