KFM Kingdom Holdings Ltd. (3816) AI Stock Analysis

• Market Cap: HK$1.87B
• Dividend Yield: 2.71%
• Average Volume (3M): 377.00K
• Price to Earnings (P/E): 2.8
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: HK$3.50 ▲(629.17% Upside)
• Action: Upgraded Date: 03/07/26
• Date: Action: Upgraded 03/07/26

Overall score reflects strong technical momentum and very attractive valuation (low P/E and very high dividend yield), tempered by mixed financial performance where negative operating cash flow and weakening free cash flow growth offset otherwise improving profitability and a strengthened balance sheet.

Positive Factors

Revenue Growth

A 16.1% revenue recovery signals durable demand and expanding sales at the core business. Sustained top-line growth over multiple quarters supports operating leverage, provides headroom for reinvestment in capacity or products, and underpins longer-term profit expansion.

Margin Improvement

Improved net margin to 4.8% alongside a stable ~18% gross margin points to better pricing or cost control at the gross and bottom-line levels. If maintained, these margins create a more resilient earnings base that can absorb input cost volatility and support capital allocation decisions.

Strong Balance Sheet

Very low leverage and a high equity ratio reduce refinancing and solvency risk, giving management flexibility to fund working capital, capex, or strategic initiatives. Improved ROE indicates the balance sheet is being used more effectively to generate shareholder returns.

Negative Factors

Negative Operating Cash Flow

Consistent negative operating cash flow undermines the sustainability of earnings improvements. Without positive cash conversion, the company may need external financing to fund operations or investments, increasing liquidity risk and constraining long-term strategic flexibility.

Declining Operating Margins

Compression in EBIT/EBITDA margins signals rising operating costs or weakening efficiency that could erode profitability if not addressed. Even with net margin gains, sustained declines in core operating margins risk reducing cash generation and investor returns over time.

Cash Conversion & Coverage Risk

A high FCF-to-net-income ratio coupled with a negative operating cash flow coverage ratio suggests volatile or unreliable cash conversion. This raises the risk that reported profits do not translate into usable cash, limiting ability to sustain dividends, capex, or debt servicing long-term.

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. Financial Statement Overview

Summary

Mixed fundamentals: strong revenue growth (16.1%) and improved net margin (4.8%) plus a solid balance sheet (debt-to-equity 0.16; equity ratio 65.8%), but cash flow is a key weakness with negative operating cash flow and declining free cash flow growth.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	840.31M	757.55M	589.90M	605.10M	612.19M	406.34M
Gross Profit	154.35M	137.28M	107.26M	103.28M	99.92M	82.63M
EBITDA	86.05M	74.78M	67.74M	61.91M	49.73M	41.91M
Net Income	44.42M	36.33M	23.24M	22.67M	-48.19M	17.92M
Balance Sheet
Total Assets	902.36M	842.35M	778.28M	728.73M	776.49M	920.25M
Cash, Cash Equivalents and Short-Term Investments	212.48M	152.50M	159.47M	293.54M	304.20M	404.15M
Total Debt	73.78M	86.60M	58.04M	114.64M	143.69M	249.77M
Total Liabilities	246.75M	218.70M	175.48M	215.61M	271.83M	360.62M
Stockholders Equity	585.75M	554.38M	530.55M	513.12M	504.66M	555.51M
Cash Flow
Free Cash Flow	29.05M	-33.17M	2.83M	5.98M	-95.76M	31.94M
Operating Cash Flow	65.19M	-24.44M	28.73M	10.10M	-53.41M	64.20M
Investing Cash Flow	-18.58M	11.60M	-12.78M	27.16M	-56.84M	-184.42M
Financing Cash Flow	-29.54M	10.62M	5.42M	-20.49M	-52.73M	-29.59M

KFM Kingdom Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.48
• 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:3816, the sentiment is Positive. The current price of 0.48 is below the 20-day moving average (MA) of 2.28, below the 50-day MA of 1.30, and below the 200-day MA of 0.62, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 76.97 is Negative, neither overbought nor oversold. The STOCH value of 89.08 is Negative, 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
3816	76 Outperform	HK$1.87B	2.76	7.82%	2.71%	28.78%	185.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0838	63 Neutral	HK$1.42B	2.31	7.83%	5.09%	0.51%	3.74%
0929	54 Neutral	HK$652.40M	55.00	0.57%	―	1.48%	12.50%
0255	53 Neutral	HK$950.83M	-59.57	0.40%	14.77%	-4.52%	―
0822	50 Neutral	HK$268.13M	-2.13	-4.33%	―	10.91%	11.01%

KFM Kingdom Holdings Ltd. Corporate Events

KFM Kingdom Flags Up to 120% Profit Surge on Data-Sector Demand

KFM Kingdom Holdings has issued a positive profit alert, indicating that net profit after tax for the financial year ending 31 March 2026 is expected to rise by about 80% to 120% from the prior year. The surge is mainly driven by higher revenue from customers in the network and data storage sector, underscoring the Group’s growing reliance on technology-driven demand and suggesting stronger earnings momentum, though final audited results may still vary and investors are urged to exercise caution.

The board’s preliminary assessment is based on unaudited management accounts for the first ten months of FY2026 and its view of market conditions for the final two months of the period. The company plans to release its full annual results on or before 30 June 2026, and has cautioned that market developments and subsequent audit and board review could lead to differences between the forecast and the final reported figures.

The most recent analyst rating on (HK:3816) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on KFM Kingdom Holdings Ltd. stock, see the HK:3816 Stock Forecast page.

KFM Kingdom Holdings Declares HK$24 Million Special Dividend

KFM Kingdom Holdings has approved a special dividend of HK$0.04 per share, totaling about HK$24 million, signalling a distribution of surplus capital to shareholders. The payout, scheduled for mid-April 2026, underlines the company’s current financial capacity to return cash to investors and may enhance its appeal to income-focused shareholders.

Shareholders on the register at the close of business on 17 March 2026 will be entitled to the special dividend, with the register of members closed from 13 to 17 March to determine eligibility. The timetable and transfer requirements mean investors must complete share transfers by 12 March 2026, a key date for stakeholders seeking to capture the one-off distribution.

The most recent analyst rating on (HK:3816) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on KFM Kingdom Holdings Ltd. stock, see the HK:3816 Stock Forecast page.

KFM Kingdom Holdings to Consider Special Dividend at Upcoming Board Meeting

KFM Kingdom Holdings Ltd. has announced that its board of directors will meet on 27 February 2026 to consider the declaration of a special dividend for its shareholders. The company plans to issue a further announcement detailing the special dividend if it is approved, while cautioning shareholders and potential investors that the proposal may not be endorsed and urging them to exercise care when trading its shares.

The most recent analyst rating on (HK:3816) stock is a Buy with a HK$2.00 price target. To see the full list of analyst forecasts on KFM Kingdom Holdings Ltd. stock, see the HK:3816 Stock Forecast page.

KFM Kingdom Flags Unusual Trading as Controlling Shareholder Weighs Potential Cooperation Deals

KFM Kingdom Holdings Ltd. reported unusual movements in its share price and trading volume on 29 January 2026 and, after internal enquiries, said it was not aware of any undisclosed information that would account for the sharp trading activity or require disclosure under Hong Kong’s securities laws. The company revealed that its controlling shareholder, KIG Real Estate Holdings Limited, has been approached by several parties regarding possible forms of cooperation, including a potential transaction involving KFM’s securities, though no structure or terms have been determined, and it warned shareholders and investors to exercise caution when dealing in the stock pending further announcements.

The most recent analyst rating on (HK:3816) stock is a Buy with a HK$0.78 price target. To see the full list of analyst forecasts on KFM Kingdom Holdings Ltd. stock, see the HK:3816 Stock Forecast page.

KFM Kingdom Holdings Ltd. Issues Supplemental Announcement on CEO Emoluments

KFM Kingdom Holdings Ltd., listed on the Hong Kong Stock Exchange, has issued a supplemental announcement regarding its annual report for the fiscal year ending March 31, 2016. The announcement provides additional details on the emoluments of its former CEO, Ms. Chung Sin Ling, who resigned in February 2016. This disclosure ensures transparency in the company’s financial reporting and maintains compliance with listing regulations.

The most recent analyst rating on (HK:3816) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on KFM Kingdom Holdings Ltd. stock, see the HK:3816 Stock Forecast page.