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

• Market Cap: HK$87.36M
• Dividend Yield: N/A
• Average Volume (3M): 48.75K
• Price to Earnings (P/E): 8.0
• Beta (1Y): -0.15
• Revenue Growth: 92.38%
• EPS Growth: N/A
• Country: HK
• Employees: 318
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): 0.09
• Shares Outstanding: 84,000,000
• 10 Day Avg. Volume: 138,520
• 30 Day Avg. Volume: 48,746
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$1.00
• Price Target Upside: -3.85% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 58 Neutral
• Price Target: HK$1.00 ▼(-3.85% Downside)

The overall score reflects strong revenue growth and valuation attractiveness, but is tempered by technical overbought signals and cash flow challenges. The stock has potential, but caution is advised due to current market conditions.

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. primarily generates revenue through its construction contracts, which include public and private sector projects. The company bids for and secures contracts for various construction works, receiving payments based on project milestones and completion stages. Key revenue streams include civil engineering projects, building construction projects, and specialized services in project management. Additionally, the firm may benefit from partnerships with government agencies and private developers, enabling access to larger projects and consistent work. Factors contributing to its earnings include a strong reputation in the market, a skilled workforce, and the ability to manage complex projects efficiently.

Sam Woo Construction Group Ltd. Financial Statement Overview

Summary

Sam Woo Construction Group Ltd. shows positive revenue growth and improved operational margins, indicating recovery potential. However, low net profit margins and cash flow challenges highlight areas needing improvement.

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	880.85M	880.85M	457.88M	416.85M	362.51M	356.21M
Gross Profit	107.13M	110.29M	31.81M	-737.00K	-57.52M	-4.05M
EBITDA	63.41M	66.30M	19.18M	13.76M	-66.86M	-865.00K
Net Income	10.94M	10.94M	-28.28M	-31.45M	-100.70M	-33.75M
Balance Sheet
Total Assets	921.08M	921.08M	863.59M	971.43M	804.21M	933.37M
Cash, Cash Equivalents and Short-Term Investments	112.37M	112.37M	85.73M	197.07M	127.93M	187.92M
Total Debt	191.59M	191.59M	255.64M	213.30M	110.48M	119.98M
Total Liabilities	441.42M	441.42M	392.99M	471.48M	272.11M	302.38M
Stockholders Equity	479.65M	479.65M	470.60M	499.95M	532.10M	630.99M
Cash Flow
Free Cash Flow	28.19M	28.19M	-48.38M	-89.74M	-21.59M	-14.90M
Operating Cash Flow	79.04M	79.04M	-33.32M	-58.09M	-13.42M	-2.66M
Investing Cash Flow	-49.40M	-49.40M	-15.05M	-31.64M	-8.16M	-12.24M
Financing Cash Flow	-2.99M	-2.99M	-62.97M	158.88M	-18.58M	-24.33M

Sam Woo Construction Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.04
• 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 1.04 is above the 20-day moving average (MA) of 0.76, above the 50-day MA of 0.70, and above the 200-day MA of 0.78, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 82.26 is Negative, neither overbought nor oversold. The STOCH value of 74.55 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
Sector *	64 Neutral	$10.75B	15.58	7.62%	2.01%	2.80%	-14.32%
3822	58 Neutral	HK$87.36M	7.98	2.30%	―	92.38%	―
1802	48 Neutral	HK$45.74M	0.04		―	―	―
0784	45 Neutral	HK$46.40M	13.83	-30.59%	―	10.55%	-3312.50%
1500	44 Neutral	HK$52.29M	20.36	-7.50%	―	-28.58%	-47.10%
1718	44 Neutral	HK$72.90M	―	-72.83%	―	4.32%	-143.93%
2195	―	HK$73.30M	―	-19.00%	―	―	―

Sam Woo Construction Group Ltd. Corporate Events

Sam Woo Construction Secures HK$300 Million Contract for Yuen Long South Project

Sam Woo Construction Group Ltd. has been awarded a major construction contract for foundation works in Yuen Long South, valued at over HK$300 million. This development is expected to enhance the company’s project portfolio, with completion slated for the end of 2025, though no profit forecasts have been made.

Sam Woo Construction Group Announces Share Consolidation Approval

Sam Woo Construction Group Limited, a company incorporated in the Cayman Islands, held an Extraordinary General Meeting on February 12, 2025, where the proposed resolution for share consolidation was approved. The resolution, which consolidates every twenty issued and unissued shares of HK$0.0025 par value into one share of HK$0.05 par value, was overwhelmingly passed with 99.99% of votes in favor, indicating strong shareholder support for the company’s strategic financial restructuring.