KFM Kingdom Holdings Ltd. (3816) AI Stock Analysis

• Market Cap: HK$198.00M
• Dividend Yield: 2.42%
• Average Volume (3M): 118.00K
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.22
• Revenue Growth: 13.26%
• EPS Growth: -18.81%
• Country: HK
• Employees: 1,057
• Sector: Industrials
• Sector Strength: 86
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 0.02
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 56,000
• 30 Day Avg. Volume: 118,000
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 69 Neutral
• Price Target: ―

KFM Kingdom Holdings Ltd. has a solid financial foundation with low leverage and improving profitability metrics, although declining revenue and constrained cash flow pose challenges. The stock shows positive price momentum and is fairly valued with a reasonable P/E ratio and dividend yield. The overall score reflects these factors, balancing financial stability with growth challenges.

KFM Kingdom Holdings Ltd. Business Overview & Revenue Model

Company Description

KFM Kingdom Holdings Ltd. (3816) is an investment holding company primarily engaged in the manufacturing and sale of precision metal stamping and lathing products. The company operates through various segments including precision metal stamping, lathing, and the sale of automotive parts, catering to a diverse range of industries such as electronics, automotive, and telecommunications.

How the Company Makes Money

KFM Kingdom Holdings Ltd. generates revenue by manufacturing and selling precision metal stamping and lathing products. The company's key revenue streams include the sale of these products to clients across various industries including electronics, automotive, and telecommunications. KFM Kingdom Holdings Ltd. has established significant partnerships with major clients in these sectors, which contributes to its earnings. Additionally, the company benefits from economies of scale in production and leverages its technological expertise to maintain competitive pricing and quality standards, ensuring a steady flow of income.

KFM Kingdom Holdings Ltd. Financial Statement Overview

Summary

KFM Kingdom Holdings Ltd. presents a mixed financial performance. The company has demonstrated improvements in profitability metrics and maintains a strong balance sheet with low leverage. However, revenue has been declining, and cash flow remains constrained by capital expenditures. Overall, while the company shows stable financial health, there are challenges in sustaining growth and enhancing cash flow.

Income Statement

KFM Kingdom Holdings Ltd. shows a decrease in revenue over the past years, with the latest annual revenue at HKD 589.9 million, down from HKD 605.1 million the previous year. The gross profit margin is stable at approximately 18.2%, while the net profit margin has improved to about 3.9%, indicating better cost management. EBIT and EBITDA margins are modest at 2.9% and 11.5%, respectively, highlighting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio has improved to approximately 0.11, indicating a low level of leverage and reduced financial risk. The equity ratio is strong at 68.2%, suggesting a solid financial foundation. Return on Equity (ROE) has improved to about 4.4%, reflecting positive performance and value generation for shareholders.

Cash Flow

Operating cash flow has increased significantly to HKD 28.7 million from HKD 10.1 million, indicating improved cash generation capabilities. However, free cash flow has declined to HKD 2.8 million due to higher capital expenditures. The operating cash flow to net income ratio is 1.23, showing adequate cash conversion, but the free cash flow to net income ratio is only 0.12, suggesting limited cash available after capital investments.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	589.90M	605.10M	612.19M	406.34M	986.74M
Gross Profit	107.26M	103.28M	99.92M	82.63M	240.14M
EBITDA	67.74M	61.91M	49.73M	41.91M	104.41M
Net Income	23.24M	22.67M	-48.19M	17.92M	644.00K
Balance Sheet
Total Assets	778.28M	728.73M	776.49M	920.25M	825.31M
Cash, Cash Equivalents and Short-Term Investments	159.47M	293.54M	304.20M	404.15M	386.35M
Total Debt	58.04M	114.64M	143.69M	249.77M	214.09M
Total Liabilities	175.48M	215.61M	271.83M	360.62M	313.20M
Stockholders Equity	530.55M	513.12M	504.66M	555.51M	508.47M
Cash Flow
Free Cash Flow	2.83M	5.98M	-95.76M	31.94M	66.56M
Operating Cash Flow	28.73M	10.10M	-53.41M	64.20M	90.90M
Investing Cash Flow	-12.78M	27.16M	-56.84M	-184.42M	-35.19M
Financing Cash Flow	5.42M	-20.49M	-52.73M	-29.59M	-22.78M

KFM Kingdom Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.33
• 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 Positive. The current price of 0.33 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.31, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 58.24 is Neutral, neither overbought nor oversold. The STOCH value of 61.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
1810	78 Outperform	$1.39T	40.66	14.98%	―	38.46%	72.44%
2331	77 Outperform	$42.25B	12.90	11.92%	3.90%	1.85%	-6.19%
2020	77 Outperform	$249.67B	14.88	28.11%	0.03%	11.51%	47.88%
3816	69 Neutral	HK$198.00M	5.45	6.70%	2.42%	13.26%	-18.81%
1177	68 Neutral	$130.92B	68.99	6.14%	0.96%	7.63%	-24.23%
1211	64 Neutral	$904.79B	20.96	23.91%	1.24%	33.89%	45.52%
Sector *	58 Neutral	HK$13.15B	4.79	-3.05%	5.94%	3.60%	-58.57%

KFM Kingdom Holdings Ltd. Corporate Events

KFM Kingdom Holdings Ltd. Announces Acquisition of Metal Pressing Machines

KFM Kingdom Holdings Ltd., through its wholly-owned subsidiary KPM Malaysia, has entered into a purchase contract to acquire 16 frame crank press machines for metal pressing at a total price of RMB9,440,000. This acquisition is classified as a discloseable transaction under the Hong Kong Stock Exchange Listing Rules, requiring notification and announcement due to its size relative to the company’s existing assets.

KFM Kingdom Holdings Ltd. Projects Significant Profit Growth for FY2025

KFM Kingdom Holdings Ltd. has announced a positive profit alert, expecting a 50% to 80% increase in profit for the fiscal year ending March 2025 compared to the previous year. This growth is primarily driven by increased revenue from the network and data storage industry, despite a decline in the office automation sector.