Ching Lee Holdings Ltd. (3728) AI Stock Analysis

• Market Cap: HK$63.82M
• Dividend Yield: N/A
• Average Volume (3M): 280.00K
• Price to Earnings (P/E): 6.8
• Beta (1Y): 0.45
• Revenue Growth: 42.91%
• EPS Growth: -12.26%
• 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: 80,000
• 30 Day Avg. Volume: 280,000
• 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: 58 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall score reflects strong revenue growth and an attractive valuation, offset by low profitability margins, cash flow volatility, and bearish technical indicators. The lack of earnings call data and corporate events limits further insights.

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 construction materials and prefabricated building components. The company operates in various sectors, including construction, real estate development, and manufacturing, offering a diverse range of products such as concrete products, steel materials, and prefabricated structures. Ching Lee Holdings aims to provide innovative and sustainable building solutions to meet the growing demands of the construction industry.

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. 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: 0.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 0.07 is above the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 35.64 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
3728	58 Neutral	HK$63.82M	6.77	7.15%	―	42.91%	-12.26%
8616	55 Neutral	HK$50.00M	-3.76	-7.37%	―	-2.10%	-1562.50%
2110	54 Neutral	HK$42.60M	―	-58.76%	―	-9.20%	32.32%
8423	48 Neutral	HK$39.20M	-3.18	-8.14%	―	40.98%	-222.22%
8366	44 Neutral	HK$48.89M	50.00	―	―	-7.34%	―
6189	38 Underperform	HK$17.35M	―	―	―	―	―

Ching Lee Holdings Ltd. Corporate Events

Ching Lee Holdings Ltd. AGM Resolutions Unanimously Approved

Ching Lee Holdings Limited, a company incorporated in the Cayman Islands, announced the successful conclusion of its Annual General Meeting (AGM) held on September 2, 2025. All proposed resolutions, including the adoption of financial statements, re-election of directors, and authorization for share allotment and repurchase, were passed with unanimous approval from shareholders. This outcome reflects strong shareholder support and positions the company for continued operational stability and strategic flexibility.