Ching Lee Holdings Ltd. (3728) AI Stock Analysis

• Market Cap: HK$34.44M
• Dividend Yield: N/A
• Average Volume (3M): 897.33K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.47
• Revenue Growth: 13.59%
• EPS Growth: -19.85%
• Country: HK
• Employees: 186
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): <0.01
• Shares Outstanding: 1,013,000,000
• 10 Day Avg. Volume: 622,000
• 30 Day Avg. Volume: 897,333
• PEG Ratio: 1.99
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.33
• 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: 56 Neutral
• Price Target: ―

Ching Lee Holdings Ltd.'s overall stock score is primarily impacted by its mixed financial performance, with notable strengths in operational efficiency and balance sheet stability offset by profitability and liquidity challenges. Technical analysis indicates a bearish trend, compounded by the lack of positive market momentum. While the stock appears undervalued based on its P/E ratio, the absence of a dividend yield might deter income investors. Without recent earnings call insights or corporate events affecting the stock, the focus remains on improving profitability and cash flow management.

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 Ltd. generates revenue through its core business activities in the construction and engineering sectors. The company earns money by undertaking construction contracts for residential, commercial, and public sector projects. These contracts typically involve fixed-price agreements, where the company is paid based on the completion of specific project milestones. Additionally, Ching Lee Holdings may engage in renovation and maintenance projects, providing a steady stream of income through ongoing service contracts. The company also benefits from strategic partnerships and collaborations with developers and government agencies, which can lead to new project opportunities and enhance its market position.

Ching Lee Holdings Ltd. Financial Statement Overview

Summary

Ching Lee Holdings Ltd. exhibits improving operational efficiency with enhanced gross profit margins. However, challenges persist in profitability with a low net profit margin and liquidity concerns due to negative cash flow. The balance sheet reflects stability but is heavily leveraged.

Income Statement

Ching Lee Holdings Ltd. has shown a volatile revenue trend with significant growth in 2022 and 2023, but a decline in 2024. The gross profit margin has improved, reaching 8.5% in 2024, indicating better cost management. However, the net profit margin is low at 1.2%, suggesting challenges in converting revenue to profit. EBIT and EBITDA margins are improving, reflecting operational efficiency gains.

Balance Sheet

The company's debt-to-equity ratio is 1.31, indicating significant leverage. The equity ratio stands at 21.9%, pointing to a moderate reliance on equity financing. Return on equity (ROE) is low at 8.4%, suggesting limited profitability from shareholders' investments. Overall, the balance sheet reflects a stable, albeit leveraged, financial position.

Cash Flow

Ching Lee Holdings Ltd. exhibits negative free cash flow growth, with substantial negative free cash flow of -29.7 million in 2024. The operating cash flow to net income ratio is negative, indicating insufficient operational cash generation. This presents potential liquidity concerns despite positive financing cash flow.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	896.69M	708.78M	536.50M	908.81M	993.34M
Gross Profit	76.58M	71.67M	24.24M	61.33M	80.66M
EBITDA	26.75M	23.33M	-14.59M	24.06M	30.14M
Net Income	10.69M	11.56M	-18.16M	11.54M	12.17M
Balance Sheet
Total Assets	580.86M	582.41M	321.80M	423.89M	521.38M
Cash, Cash Equivalents and Short-Term Investments	45.97M	57.37M	27.25M	58.55M	59.38M
Total Debt	166.16M	140.29M	70.20M	93.29M	158.25M
Total Liabilities	453.85M	465.86M	217.06M	297.96M	400.40M
Stockholders Equity	127.01M	116.55M	104.74M	125.94M	120.98M
Cash Flow
Free Cash Flow	-29.68M	-10.99M	-9.16M	74.97M	54.49M
Operating Cash Flow	-28.57M	-10.62M	-9.16M	80.27M	54.97M
Investing Cash Flow	717.00K	-19.79M	7.34M	-1.47M	-12.41M
Financing Cash Flow	13.86M	60.16M	-29.47M	-76.85M	-55.06M

Ching Lee Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 0.03 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 17.77 is Positive, neither overbought nor oversold. The STOCH value of -11.57 is Positive, 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 *	71 Outperform	¥266.83B	13.99	8.47%	2.88%	6.37%	12.94%
3728	56 Neutral	HK$34.44M	3.66	7.15%	―	13.59%	-19.85%
8423	56 Neutral	HK$41.60M	2.76	-8.14%	―	40.98%	-222.22%
8616	47 Neutral	HK$34.00M	―	-7.37%	―	-2.10%	-1562.50%
8366	46 Neutral	HK$61.51M	44.29		―	21.90%	―
2110	44 Neutral	HK$39.60M	―	-44.85%	―	8.09%	61.44%
6189	38 Underperform	HK$17.35M	―		―	―	―