Kwong Man Kee Group Ltd (8023) AI Stock Analysis

• Market Cap: HK$209.11M
• Dividend Yield: 1.75%
• Average Volume (3M): 11.80K
• Price to Earnings (P/E): 8.2
• Beta (1Y): -0.48
• Revenue Growth: 14.72%
• EPS Growth: -26.49%
• Country: HK
• Employees: 56
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.01
• Shares Outstanding: 597,444,000
• 10 Day Avg. Volume: 22,200
• 30 Day Avg. Volume: 11,800
• PEG Ratio: -0.63
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 709.14
• 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: 56 Neutral
• Price Target: HK$0.36 ▲(28.93% Upside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

Kwong Man Kee Group Ltd's overall stock score is primarily influenced by its mixed financial performance, with positive revenue growth but declining profitability and weak cash flow. Technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth Recovery

Kwong Man Kee's latest year revenue growth of ~10.5% signals a recovery in underlying demand and project wins. Sustained top-line growth over the coming months supports operational leverage, provides runway for margin repair and reinvestment if cost discipline is maintained.

Low Leverage / Strong Balance Sheet

A debt-to-equity ratio of ~0.07 and healthy equity backing indicate conservative leverage and capital structure. That durable strength provides flexibility to fund working capital or selective project bids, absorb shocks and avoid distress financing over a multi-month horizon.

Lean Operating Base

A small headcount (56 employees) suggests a relatively lean fixed-cost base and operational nimbleness. This structure can help control overhead, scale via subcontracting or project-based hires, and preserve margins and cash flow while revenue recovers over several months.

Negative Factors

Declining Profitability Margins

Material contraction in gross and net margins indicates ongoing pressure on pricing, costs or project mix. Persistent margin erosion reduces earnings power per revenue dollar, limiting the company's ability to rebuild reserves, invest in growth or improve returns absent structural cost or pricing fixes.

Weak Cash Generation

A >100% decline in free cash flow growth and an OCF-to-net-income ratio near 0.024 show poor cash conversion. Weak cash generation threatens internal funding for projects and capex, may force external financing despite low leverage, and elevates execution and liquidity risk over the medium term.

Falling ROE and EPS

Declining return on equity and significant negative EPS growth signal weakening profitability and earnings quality. Reduced ROE and EPS contraction limit retained earnings growth and may constrain strategic investments or dividend capacity unless operational performance improves.

Kwong Man Kee Group Ltd Business Overview & Revenue Model

Company Description

Kwong Man Kee Group Limited, an investment holding company, provides engineering services to the car park flooring industry in Hong Kong. The company offers flooring services, including application of proprietary floor coating products for providing a colorful, slip-resistance, and hard wearing surface that is resistant against water and petrochemicals; and ancillary services comprising specialized texture painting and waterproofing works. It also offers screeding and anti-skid surfacing services, as well as engages in trading of materials; and sells car park flooring materials. The company was founded in 2002 and is headquartered in Kowloon, Hong Kong. Kwong Man Kee Group Limited is a subsidiary of Sage City Investments Limited.

How the Company Makes Money

Kwong Man Kee Group Ltd Financial Statement Overview

Summary

Kwong Man Kee Group Ltd shows positive revenue growth but faces declining profitability margins. The balance sheet is strong with low leverage, yet cash flow performance is weak, indicating potential risks if not addressed.

Income Statement

Kwong Man Kee Group Ltd has shown a positive revenue growth rate of 10.53% in the latest year, indicating a recovery from previous declines. However, the gross profit margin has decreased from 36.13% to 30.98%, and the net profit margin has also declined from 9.39% to 4.91%. This suggests pressure on profitability despite revenue growth. The EBIT and EBITDA margins have similarly decreased, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong, with a low debt-to-equity ratio of 0.0715, indicating conservative leverage. Return on equity has decreased to 6.43%, reflecting lower profitability. The equity ratio remains healthy, suggesting a stable financial position with adequate equity backing the assets.

Cash Flow

Cash flow performance is concerning, with a significant decline in free cash flow growth of -102.38%. The operating cash flow to net income ratio is low at 0.024, indicating potential issues in converting income into cash. The free cash flow to net income ratio is moderate at 0.251, but overall cash generation appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	218.90M	166.94M	147.56M	170.61M	110.42M	118.87M
Gross Profit	67.93M	51.72M	53.31M	53.85M	35.74M	41.78M
EBITDA	18.41M	16.40M	22.46M	27.27M	12.06M	21.97M
Net Income	9.17M	8.19M	13.86M	19.12M	7.46M	15.57M
Balance Sheet
Total Assets	206.99M	179.90M	181.26M	174.30M	149.80M	129.92M
Cash, Cash Equivalents and Short-Term Investments	27.78M	33.45M	50.55M	38.47M	23.87M	34.55M
Total Debt	27.09M	9.11M	15.53M	13.96M	15.94M	9.98M
Total Liabilities	70.75M	50.09M	54.81M	55.62M	47.99M	29.52M
Stockholders Equity	133.23M	127.35M	125.08M	118.25M	102.10M	100.64M
Cash Flow
Free Cash Flow	276.64K	294.87K	18.71M	23.86M	-4.15M	16.65M
Operating Cash Flow	8.97M	1.18M	20.00M	24.20M	148.11K	17.57M
Investing Cash Flow	-8.54M	-349.60K	-768.00K	-6.48M	-9.71M	-906.53K
Financing Cash Flow	-12.53M	-13.68M	-7.45M	-7.22M	-1.09M	-1.70M

Kwong Man Kee Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8023, the sentiment is Positive. The current price of 0.28 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.32, and below the 200-day MA of 0.31, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 57.31 is Neutral, neither overbought nor oversold. The STOCH value of 82.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8023.

Kwong Man Kee Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8601	78 Outperform	HK$208.00M	7.28	18.71%	5.14%	4.57%	8.55%
1582	65 Neutral	HK$180.00M	2.21	6.22%	9.71%	27.42%	-32.34%
2663	64 Neutral	HK$153.16M	3.77	8.56%	23.73%	-32.31%	-51.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0368	61 Neutral	HK$416.00M	11.37	9.06%	3.63%	6.27%	―
8023	56 Neutral	HK$209.11M	8.23	6.14%	1.75%	14.72%	-26.49%
1865	48 Neutral	HK$499.88M	-1.14	-16.00%	―	9.19%	84.15%