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

• Market Cap: HK$103.32M
• Dividend Yield: 10.17%
• Average Volume (3M): 4.54K
• Price to Earnings (P/E): 0.4
• Beta (1Y): -0.04
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: HK$1.50 ▲(26.05% Upside)
• Action: Upgraded Date: 11/30/25
• Date: Action: Upgraded 11/30/25

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

Strong revenue growth

Sustained high revenue growth demonstrates the company is winning more contracts and scaling operations. Over a 2-6 month horizon, this trend supports backlog expansion and better utilization of fixed resources, strengthening long-term cash generation potential if margins hold.

Improving gross and operating margins

Rising gross profit and positive operating margins reflect improved cost control and project execution. These operational gains are structural drivers for sustainable profitability, enabling competitive bidding and cushioning margin volatility across future contracts.

More balanced capital structure

Lower leverage provides financial flexibility to pursue new tenders and absorb project delays. A D/E of 0.40 reduces refinancing risk and interest burden, improving resilience to construction cycle swings and supporting continued investment in operations.

Negative Factors

Weak cash conversion

Poor conversion of accounting profits into cash is a structural concern for a contract-driven contractor. Low OCF/Net Income and declining FCF constrain liquidity for working capital, retentions, and new bid financing, increasing reliance on external funding over the medium term.

Low net profit margin

A sub-2% net margin limits the firm's ability to self-fund growth, absorb cost shocks, or deliver returns to shareholders. In construction, low net margins reduce buffer against project overruns and commodity price swings, affecting long-term earnings durability.

Modest return on equity

ROE around 2% signals limited effectiveness in converting equity into earnings. This structural weakness may deter capital providers and constrain reinvestment capacity, making it harder to scale profitably without improving margins or cash conversion.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 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: Positive
• Last Price: 1.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3822, the sentiment is Positive. The current price of 1.19 is above the 20-day moving average (MA) of 1.10, above the 50-day MA of 1.12, and above the 200-day MA of 0.88, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 74.36 is Negative, neither overbought nor oversold. The STOCH value of 80.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$103.32M	0.44	11.01%	10.17%	52.69%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1500	56 Neutral	HK$175.96M	0.50	10.06%	―	-17.67%	1010.71%
0784	54 Neutral	HK$182.40M	48.23	-31.99%	―	-9.05%	-678.72%
1718	47 Neutral	HK$121.89M	13.37	-46.48%	―	-0.64%	13.72%
1802	44 Neutral	HK$37.42M	0.01	―	―	―	―
2195	43 Neutral	HK$65.97M	-1.06	-19.64%	―	48.86%	54.49%