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Vicon Holdings Limited (HK:3878)
:3878
Hong Kong Market

Vicon Holdings Limited (3878) AI Stock Analysis

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HK

Vicon Holdings Limited

(3878)

Rating:57Neutral
Price Target:
Vicon Holdings Limited shows a stable financial foundation with revenue growth and improved cash flow management. However, its modest profitability and operational efficiency are areas for improvement. The technical indicators point to a bearish trend, and while the valuation is reasonable, the lack of a dividend yield may deter some investors. Overall, the stock reflects stability with potential for growth, but current market sentiment is weak.

Vicon Holdings Limited (3878) vs. iShares MSCI Hong Kong ETF (EWH)

Vicon Holdings Limited Business Overview & Revenue Model

Company DescriptionVicon Holdings Limited (3878) is a Hong Kong-based construction company specializing in foundation works and ground investigation field works. The company is primarily engaged in the provision of foundation works including piling works, ELS works, and other ancillary services such as site formation, ground investigation, and site investigation. Vicon Holdings serves a diverse range of customers in both public and private sectors, delivering critical infrastructure and construction projects.
How the Company Makes MoneyVicon Holdings Limited makes money through its core operations in the construction industry, particularly focusing on foundation works. The company generates revenue by undertaking construction contracts for both public and private sector clients. These contracts typically involve various stages of construction work, including design, planning, and execution of foundation and site investigation services. The company's earnings are further supported by its specialization in piling and ELS works, which are critical components of construction that require technical expertise and equipment. Additionally, Vicon Holdings may engage in strategic partnerships or collaborations with other construction firms or developers to expand its project portfolio and enhance its service offerings.

Vicon Holdings Limited Financial Statement Overview

Summary
Vicon Holdings Limited demonstrates positive financial trends with revenue growth and improved profitability. The company's balance sheet remains robust with low leverage, and cash flow generation is strong, supporting operational activities. While profitability margins have improved, they remain modest, indicating areas for further operational efficiency.
Income Statement
62
Positive
Vicon Holdings Limited has shown improvements in profitability, with net profit margin increasing from 0.57% in 2023 to 1.70% in 2024. Revenue grew by 16.7% from 2023 to 2024, indicating positive growth. Gross profit margin remained stable at 9.03% in 2024. However, the EBIT margin of 1.43% in 2024 suggests limited operational efficiency. Overall, the income statement reflects recovery and growth but also highlights modest profitability and operational challenges.
Balance Sheet
70
Positive
The company's balance sheet is strong, with a debt-to-equity ratio of 0.03, indicating low leverage and reduced financial risk. The equity ratio improved to 86.42% in 2024, showcasing a solid balance sheet structure. Return on Equity (ROE) increased to 3.10% in 2024, reflecting improved profitability for shareholders. The balance sheet reflects stability and low financial risk, but there is room for improvement in achieving higher returns on equity.
Cash Flow
75
Positive
Vicon Holdings has shown significant improvement in cash flow management. Operating cash flow increased to 39.72M in 2024, resulting in a robust Operating Cash Flow to Net Income Ratio of 4.80. Free Cash Flow to Net Income Ratio is strong at 4.66, indicating efficient cash conversion from earnings. Free cash flow growth is evident with a positive trend, reflecting strong cash generation capabilities. The cash flow statement highlights strong operational cash flow and effective cash management strategies.
BreakdownTTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income Statement
Total Revenue318.51M486.64M417.04M156.59M254.63M468.24M
Gross Profit33.70M43.95M43.58M33.16M-38.46M43.52M
EBITDA14.46M17.43M10.82M-5.10M-25.85M59.42M
Net Income7.56M8.27M2.39M-24.56M-51.51M23.73M
Balance Sheet
Total Assets309.47M308.42M338.93M335.19M405.05M576.57M
Cash, Cash Equivalents and Short-Term Investments34.14M39.48M18.63M25.48M14.61M22.57M
Total Debt8.96M8.78M11.02M23.29M93.05M165.70M
Total Liabilities36.56M41.93M80.71M79.36M144.02M264.03M
Stockholders Equity272.91M266.49M258.22M255.83M261.03M312.54M
Cash Flow
Free Cash Flow29.80M38.50M-17.77M29.14M60.63M6.87M
Operating Cash Flow31.03M39.72M-14.51M34.44M61.67M26.75M
Investing Cash Flow-1.43M-19.83M22.89M30.29M10.78M-18.83M
Financing Cash Flow-2.73M-2.89M-15.22M-53.87M-80.41M-6.75M

Vicon Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.16
Price Trends
50DMA
0.18
Negative
100DMA
0.19
Negative
200DMA
0.21
Negative
Market Momentum
MACD
>-0.01
Positive
RSI
36.75
Neutral
STOCH
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3878, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.17, below the 50-day MA of 0.18, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 36.75 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3878.

Vicon Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$16.83B8.1616.66%5.53%-8.19%-9.98%
58
Neutral
HK$13.89B4.44-3.01%7.32%3.67%-54.16%
57
Neutral
HK$74.34M15.351.80%-46.10%-38.04%
45
Neutral
HK$74.80M-102.44%-24.20%-97.97%
40
Underperform
HK$91.01M68.18-21.90%-8.34%-8828.57%
31
Underperform
$142.20M
-69.69%-9.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:3878
Vicon Holdings Limited
0.15
-0.08
-34.78%
HK:8490
Niche-Tech Semiconductor Materials Limited
0.14
>-0.01
-6.67%
HK:1592
Anchorstone Holdings Limited
0.04
0.01
33.33%
HK:1738
Feishang Anthracite Resources
0.10
-0.02
-14.17%
HK:1999
Man Wah Holdings
4.32
-0.09
-1.97%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025