KFM Kingdom Holdings Ltd. (3816) AI Stock Analysis

• Market Cap: HK$300.00M
• Dividend Yield: 2.71%
• Average Volume (3M): 377.00K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.48
• Revenue Growth: 28.78%
• EPS Growth: 185.71%
• Country: HK
• Employees: 1,057
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.05
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 86,400
• 30 Day Avg. Volume: 377,000
• PEG Ratio: 0.10
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.27
• P/FCF Ratio: -6.06
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: HK$0.50 ▲(4.17% Upside)

KFM Kingdom Holdings Ltd. has a mixed financial performance with strong revenue growth but faces operational and cash flow challenges. The technical analysis indicates a bearish trend, which is a significant risk factor. However, the stock's low P/E ratio suggests it may be undervalued, providing potential upside if operational issues are resolved.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust market demand and effective business strategies, supporting long-term expansion.

Improved Profitability Margins

Improved profitability margins suggest enhanced operational efficiency and cost management, contributing to sustainable financial health.

Reduced Leverage

Reduced leverage enhances financial stability and flexibility, allowing the company to better manage economic fluctuations and invest in growth.

Negative Factors

Operational Efficiency Challenges

Decreased EBIT and EBITDA margins indicate operational inefficiencies, which could hinder profitability and competitiveness if not addressed.

Negative Operating Cash Flow

Negative operating cash flow can strain liquidity, limiting the company's ability to reinvest in growth and meet financial obligations.

Liquidity Concerns

Ongoing liquidity issues may impact the company's ability to fund operations and growth initiatives, posing a risk to long-term viability.

KFM Kingdom Holdings Ltd. Business Overview & Revenue Model

Company Description

KFM Kingdom Holdings Limited, an investment holding company, manufactures and sells precision metal stamping and metal lathing products in the People's Republic of China, North America, Europe, and internationally. The company manufactures and sells fine metal products; manufactures and trades in senor products; and provides management services. It also offers integrated services, including design engineering solutions; prototyping, computer numerical control (CNC) laser cutting, CNC tooling design and tooling mold design, and lathing or machining parts; hard tooling and soft tooling services; secondary processing services comprising laser welding or robotic argon welding, riveting, tapping, drilling, polishing, sand blasting, etc.; and post-treatment processing services, such as silk screening printing, heat treatment, plating, coating, etc., as well as product assembly and quality testing services. In addition, the company provides packaging solutions. It serves medical and test equipment, finance equipment, consumer electronics, network/data storage, and office automation industries. The company was founded in 1987 and is headquartered in Tsuen Wan, Hong Kong. KFM Kingdom Holdings Limited is a subsidiary of Massive Force Limited.

How the Company Makes Money

KFM Kingdom Holdings Ltd. generates revenue through several key streams. The primary source of income comes from property investment, where the company earns rental income from its real estate portfolio, which includes both residential and commercial properties. Additionally, the company derives revenue from its financial services segment, which offers a range of financial products, including loans and investment services, generating interest income and service fees. Trading operations contribute to the revenue by selling consumer goods, which includes a range of products sourced from various suppliers. Significant partnerships with real estate developers and financial institutions enhance its market reach and profitability, while strategic investments in high-demand sectors help to bolster its financial performance.

KFM Kingdom Holdings Ltd. Financial Statement Overview

Summary

KFM Kingdom Holdings Ltd. demonstrates strong revenue growth and improved profitability margins, but faces challenges in operational efficiency and cash flow management. The balance sheet is robust with reduced leverage and strong equity, but liquidity concerns remain due to negative operating cash flow.

Income Statement

KFM Kingdom Holdings Ltd. shows a positive revenue growth rate of 16.1% in the latest year, indicating a recovery from previous declines. The gross profit margin remains stable at around 18%, while the net profit margin has improved to 4.8%. However, the EBIT and EBITDA margins have slightly decreased, suggesting some operational efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.16, reflecting reduced leverage and a stronger equity position. Return on equity has increased to 6.6%, indicating better profitability for shareholders. The equity ratio stands at 65.8%, showcasing a solid financial structure with a high proportion of equity financing.

Cash Flow

KFM Kingdom Holdings Ltd. faces challenges in cash flow management, with a significant decline in free cash flow growth rate and negative operating cash flow. The free cash flow to net income ratio is high at 1.36, suggesting that the company is generating cash flow relative to its net income, but the negative operating cash flow coverage ratio indicates potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	757.55M	757.55M	589.90M	605.10M	612.19M	406.34M
Gross Profit	137.28M	137.28M	107.26M	103.28M	99.92M	82.63M
EBITDA	67.30M	74.78M	67.74M	61.91M	49.73M	41.91M
Net Income	36.33M	36.33M	23.24M	22.67M	-48.19M	17.92M
Balance Sheet
Total Assets	842.35M	842.35M	778.28M	728.73M	776.49M	920.25M
Cash, Cash Equivalents and Short-Term Investments	152.50M	152.50M	159.47M	293.54M	304.20M	404.15M
Total Debt	86.60M	86.60M	58.04M	114.64M	143.69M	249.77M
Total Liabilities	218.70M	218.70M	175.48M	215.61M	271.83M	360.62M
Stockholders Equity	554.38M	554.38M	530.55M	513.12M	504.66M	555.51M
Cash Flow
Free Cash Flow	-33.17M	-33.17M	2.83M	5.98M	-95.76M	31.94M
Operating Cash Flow	-24.44M	-24.44M	28.73M	10.10M	-53.41M	64.20M
Investing Cash Flow	6.48M	11.60M	-12.78M	27.16M	-56.84M	-184.42M
Financing Cash Flow	12.74M	10.62M	5.42M	-20.49M	-52.73M	-29.59M

KFM Kingdom Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.48
• 50DMA: Positive
• 100DMA: Positive
• 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:3816, the sentiment is Neutral. The current price of 0.48 is below the 20-day moving average (MA) of 0.48, above the 50-day MA of 0.47, and above the 200-day MA of 0.38, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.20 is Neutral, neither overbought nor oversold. The STOCH value of 73.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3816.

KFM Kingdom 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%
0838	63 Neutral	€1.54B	6.09	8.13%	5.03%	0.51%	3.74%
0255	62 Neutral	HK$1.14B	167.92	0.40%	14.29%	-4.52%	―
3816	60 Neutral	HK$300.00M	6.49	7.82%	2.71%	28.78%	185.71%
0929	54 Neutral	HK$799.71M	76.77	0.57%	―	1.48%	12.50%
0822	50 Neutral	HK$344.10M	-6.98	-4.46%	―	10.91%	11.01%

KFM Kingdom Holdings Ltd. Corporate Events

KFM Kingdom Holdings Reports Strong Interim Results for 2025

KFM Kingdom Holdings Limited, a company incorporated in the Cayman Islands, announced its interim results for the six months ending September 30, 2025. The company reported a significant increase in revenue and profit compared to the same period in 2024, with revenue rising from HK$376,703,000 to HK$459,463,000 and profit increasing from HK$22,547,000 to HK$30,764,000. This growth reflects improved operational performance and market positioning, benefiting stakeholders with higher earnings per share and comprehensive income.

KFM Kingdom Holdings to Review Interim Results and Dividend Proposal

KFM Kingdom Holdings Ltd. has announced that its board of directors will meet on November 25, 2025, to review and approve the interim financial results for the six months ending September 30, 2025. This meeting will also consider the potential recommendation of an interim dividend, which could impact shareholder returns and reflect the company’s financial health.

KFM Kingdom Holdings Announces Machinery Disposal in Connected Transaction

KFM Kingdom Holdings Ltd. has announced a connected transaction involving the disposal of machinery by its wholly-owned subsidiary, KPM Malaysia, to KBT, a company owned by Mr. Sun, the chairman and controlling shareholder of KFM. The transaction, valued at approximately HK$3,900,000, is subject to reporting and announcement requirements under the Hong Kong Stock Exchange’s Listing Rules but is exempt from further shareholder approval. This disposal is part of KFM’s strategic operations, potentially impacting its asset management and financial positioning.