Sam Woo Construction Group Ltd. (3822) AI Stock Analysis

• Market Cap: HK$68.04M
• Dividend Yield: 10.34%
• Average Volume (3M): 4.54K
• Price to Earnings (P/E): 6.2
• Beta (1Y): -0.11
• Revenue Growth: 52.69%
• EPS Growth: N/A
• Country: HK
• Employees: 318
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.56
• Shares Outstanding: 84,000,000
• 10 Day Avg. Volume: 3,080
• 30 Day Avg. Volume: 4,540
• PEG Ratio: -0.04
• Price to Book (P/B): 0.11
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 1.94
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$1.50 ▲(23.97% Upside)

Sam Woo Construction Group Ltd. has a strong valuation with a low P/E ratio, indicating potential undervaluation. The technical analysis shows bullish momentum, although the high RSI suggests caution. Financial performance is improving, but cash flow issues need addressing for sustainable growth.

Positive Factors

Revenue Growth

The strong revenue growth indicates an expanding market presence and effective project execution, which can lead to sustained profitability and market competitiveness.

Operational Margins

Improved operational margins suggest enhanced efficiency and cost control, which are crucial for long-term profitability and competitive advantage in the construction industry.

Balance Sheet Health

A healthier balance sheet with improved leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Cash Flow Challenges

Weak cash flow generation can limit the company's ability to fund operations and growth initiatives, potentially impacting its long-term financial health and operational capacity.

Low Net Profit Margin

A low net profit margin indicates limited profitability, which can hinder the company's ability to reinvest in business development and compete effectively in the market.

Cash Conversion Issues

Challenges in converting income to cash can strain liquidity, affecting the company's ability to meet short-term obligations and invest in strategic opportunities.

Sam Woo Construction Group Ltd. Business Overview & Revenue Model

Company Description

Sam Woo Construction Group Limited, an investment holding company, provides foundation works and ancillary services in Hong Kong and Macau. The company undertakes the construction of bored piles and rock socketed H-piles; and excavation and lateral support works. In addition, it offers site investigation and removal of installed piles; and engages in the trading and leasing of machinery and equipment. The company was incorporated in 2012 and is headquartered in Tsim Sha Tsui, Hong Kong. Sam Woo Construction Group Limited is a subsidiary of Actiease Assets Limited.

How the Company Makes Money

Sam Woo Construction Group Ltd. generates revenue primarily through contracts awarded for construction projects, which can include public infrastructure projects, commercial buildings, and residential developments. The company typically bids for tenders issued by government bodies and private developers, securing contracts that outline specific project deliverables and timelines. Key revenue streams include direct construction services, project management fees, and additional services such as consulting and design. The company's profitability is influenced by factors such as the volume of contracts secured, efficiency in project execution, and effective cost management. Additionally, partnerships with suppliers and subcontractors play a crucial role in optimizing operations and maintaining competitive pricing.

Sam Woo Construction Group Ltd. Financial Statement Overview

Summary

Sam Woo Construction Group Ltd. shows a positive trajectory in revenue growth and operational margins, indicating recovery and potential for future profitability. The balance sheet is stable with improved leverage, but the cash flow statement highlights areas needing attention, particularly in cash generation and management.

Income Statement

Sam Woo Construction Group Ltd. has shown a significant improvement in revenue with a growth rate of 39.83% in the latest year. The gross profit margin improved to 12.52%, indicating better cost management. However, the net profit margin remains low at 1.24%, suggesting that profitability is still a concern. The positive EBIT and EBITDA margins indicate operational improvements, but there is room for further enhancement in profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.40, reflecting a more balanced capital structure. The return on equity is modest at 2.28%, indicating limited profitability relative to shareholder equity. The equity ratio is stable, suggesting a solid financial foundation. Overall, the balance sheet shows signs of stability with manageable leverage.

Cash Flow

The cash flow statement reveals challenges, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is low at 0.21, indicating potential issues in converting income to cash. The free cash flow to net income ratio is moderate at 0.36, suggesting some ability to generate cash from operations, but improvements are needed.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	961.84M	880.85M	457.88M	416.85M	362.51M	356.21M
Gross Profit	134.49M	110.29M	31.81M	-737.00K	-57.52M	-4.05M
EBITDA	120.93M	66.30M	18.65M	13.08M	-67.42M	-1.16M
Net Income	55.12M	10.94M	-28.28M	-31.45M	-100.70M	-33.75M
Balance Sheet
Total Assets	935.63M	921.08M	863.59M	971.43M	804.21M	933.37M
Cash, Cash Equivalents and Short-Term Investments	96.27M	112.37M	85.73M	197.07M	127.93M	187.92M
Total Debt	195.04M	191.59M	255.64M	213.30M	110.48M	119.98M
Total Liabilities	408.56M	441.42M	392.99M	471.48M	272.11M	302.38M
Stockholders Equity	527.07M	479.65M	470.60M	499.95M	532.10M	630.99M
Cash Flow
Free Cash Flow	77.09M	28.19M	-48.38M	-89.74M	-21.59M	-14.90M
Operating Cash Flow	125.92M	79.04M	-33.32M	-58.09M	-13.42M	-2.66M
Investing Cash Flow	-47.39M	-49.40M	-15.05M	-31.64M	-8.16M	-12.24M
Financing Cash Flow	-85.36M	-2.99M	-62.97M	158.88M	-18.58M	-24.33M

Sam Woo Construction Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3822, the sentiment is Neutral. The current price of 1.21 is above the 20-day moving average (MA) of 1.20, above the 50-day MA of 0.99, and above the 200-day MA of 0.75, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 51.82 is Neutral, neither overbought nor oversold. The STOCH value of 6.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3822.

Sam Woo Construction Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3822	71 Outperform	HK$68.04M	6.22	11.01%	10.34%	52.69%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1500	54 Neutral	HK$122.84M	4.76	10.02%	―	-17.67%	1010.71%
1718	48 Neutral	HK$53.81M	-0.49	-46.48%	―	-0.64%	13.72%
0784	47 Neutral	HK$90.40M	―	-31.99%	―	-9.05%	-678.72%
1802	44 Neutral	HK$37.42M	0.04	―	―	―	―
2195	43 Neutral	HK$55.68M	-2.09	-19.00%	―	48.86%	54.49%

Sam Woo Construction Group Ltd. Corporate Events

Sam Woo Construction Declares Interim Dividend for 2025

Sam Woo Construction Group Limited announced an interim dividend of HKD 0.12 per share for the six months ending September 30, 2025. The dividend will be paid on December 30, 2025, with the record date set for December 12, 2025. This announcement reflects the company’s financial health and commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors.

Sam Woo Construction Group Announces Interim Results for 2025

Sam Woo Construction Group Limited has announced its unaudited interim results for the six months ending 30 September 2025. The announcement adheres to the listing rules of the Hong Kong Stock Exchange, indicating the company’s compliance and transparency in financial reporting. This release may impact stakeholders by providing insights into the company’s financial health and operational performance during this period.

Sam Woo Construction Schedules Board Meeting for Interim Results

Sam Woo Construction Group Limited has announced a board meeting scheduled for November 27, 2025, to approve the interim results for the six months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and could impact its market positioning and stakeholder confidence.

Sam Woo Construction Group Anticipates Major Profit Surge

Sam Woo Construction Group Limited announced a significant profit increase for the six months ending September 30, 2025, expecting to record a profit of at least HK$40 million compared to HK$3 million in the previous year. This growth is attributed to the successful execution of the Lantau Island project, settlement of major contract accounts, and the absence of impairment losses, which collectively enhanced the company’s financial performance.

Sam Woo Construction Secures Major HK$400 Million Contract

Sam Woo Construction Group Limited has announced the award of a significant construction contract for foundation works in the Yuen Long District, valued at over HK$400 million. The project is expected to be completed by the end of 2026, marking a substantial development in the company’s business activities. This contract could potentially enhance the company’s market position and operational capacity, although no profit forecasts have been made.

Sam Woo Construction Group’s AGM Resolutions Passed

Sam Woo Construction Group Limited announced that all resolutions proposed at its annual general meeting on 9 September 2025 were passed by shareholders. These resolutions included the re-election of directors, re-appointment of auditors, and granting of mandates to the board for share issuance and repurchase, indicating strong shareholder support and potential strategic flexibility for the company.

Sam Woo Construction Group Updates Board of Directors

Sam Woo Construction Group Ltd. has announced the updated list of its board of directors and their roles, effective from September 10, 2025. This update includes the appointment of executive directors and independent non-executive directors, along with their roles in the audit, remuneration, and nomination committees, potentially impacting the company’s governance and strategic direction.