CL Group (Holdings) Limited (8098) AI Stock Analysis

• Market Cap: HK$101.20M
• Dividend Yield: N/A
• Average Volume (3M): 138.33K
• Price to Earnings (P/E): 3.2
• Beta (1Y): -0.33
• Revenue Growth: -3.21%
• EPS Growth: -184.91%
• Country: HK
• Employees: 15
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): <0.01
• Shares Outstanding: 2,200,000,000
• 10 Day Avg. Volume: 34,000
• 30 Day Avg. Volume: 138,333
• PEG Ratio: 0.43
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 4.33
• 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: 47 Neutral
• Price Target: HK$0.05 ▼(-2.00% Downside)
• Action: Reiterated Date: 10/18/25
• Date: Action: Reiterated 10/18/25

The overall stock score reflects significant financial challenges, with declining revenues and profitability being the most impactful factors. Technical indicators suggest limited short-term upside, and valuation metrics highlight unattractiveness due to negative earnings. The absence of earnings call data and corporate events further limits positive influences on the score.

Positive Factors

Conservative capital structure

A low debt-to-equity ratio and healthy equity base provide a durable financial cushion, reducing refinancing and default risk. This conservative structure supports multi-month project financing and resilience to cyclical construction slowdowns, enabling strategic investments or opportunistic M&A without immediate liquidity stress.

Positive operating cash flow

Positive operating cash flow shows the core business can convert revenue into cash, supporting working capital and near-term obligations. While free cash flow is declining, sustained OCF means management can prioritize stabilizing operations and cash conversion over the next 2-6 months to restore free cash flow.

Diversified business model

Multiple revenue streams across construction, property development, and materials trading reduce single-market exposure. This structural diversification helps smooth cash flows across project cycles, enabling the company to reallocate resources between segments and sustain revenue while individual markets fluctuate.

Negative Factors

Declining revenue and profitability

Persistent revenue and profit declines indicate structural demand weakness or execution problems in core operations. Over a 2-6 month horizon, continued top-line contraction undermines margin recovery, limits reinvestment capacity, and requires corrective strategy to avoid longer-term erosion of competitive position.

Negative gross and net margins

Negative gross and net margins point to pricing pressure or rising input costs and inefficiencies. Margin deterioration compresses retained earnings and weakens return on invested capital, making it harder to fund projects internally or compete on cost over the medium term without structural margin improvements.

Steep EPS decline and weakening free cash flow

A dramatic EPS decline and falling free cash flow reduce ability to fund capex, service debt, or pursue growth. This constrains strategic flexibility, increases funding risk for new projects, and may force prioritization of liquidity measures that limit long-term growth prospects absent a sustained operational turnaround.

CL Group (Holdings) Limited Business Overview & Revenue Model

Company Description

CL Group (Holdings) Limited, an investment holding company, provides various financial services in Hong Kong and the People's Republic of China. It offers securities, futures, and options brokering and trading services; loan financing services; placing and underwriting services; margin financing and money lending services; and securities advisory and wealth management services. The company is headquartered in Wan Chai, Hong Kong. CL Group (Holdings) Limited is a subsidiary of Zillion Profit Limited.

How the Company Makes Money

CL Group (Holdings) Limited generates revenue through multiple key streams. Its primary source of income comes from construction contracts, where the company undertakes various projects for clients, including public infrastructure and private developments. Additionally, revenue is derived from property sales and leasing, as the company develops residential and commercial real estate to sell or lease to customers. Trading in construction materials also contributes to earnings, as CL Group sources and supplies essential materials and equipment to contractors and builders. Furthermore, strategic partnerships with other construction and real estate companies help enhance project opportunities and can lead to joint ventures that provide additional revenue avenues.

CL Group (Holdings) Limited Financial Statement Overview

Summary

The company faces significant financial challenges with declining revenues and profitability. Despite a stable balance sheet with low leverage, negative return on equity and cash flow issues highlight operational inefficiencies. Improvements in revenue and cash generation are needed.

Income Statement

The income statement shows significant volatility with a drastic decline in revenue and profitability in the latest period. Gross profit margin and net profit margin have turned negative, indicating operational challenges. The revenue growth rate is severely negative, reflecting a substantial drop in sales. However, the EBITDA margin remains positive, suggesting some operational efficiency in managing non-cash expenses.

Balance Sheet

The balance sheet remains relatively stable with a low debt-to-equity ratio, indicating conservative leverage. However, the return on equity is negative, reflecting poor profitability. The equity ratio is healthy, showing a strong equity base relative to total assets, which provides some financial stability.

Cash Flow

Cash flow analysis reveals a mixed picture. Operating cash flow is positive, but free cash flow growth is negative, indicating challenges in generating cash from operations. The operating cash flow to net income ratio is positive, suggesting some ability to convert earnings into cash, but the overall cash flow position is weak due to declining free cash flow.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	40.56M	40.46M	41.78M	48.18M	41.50M
Gross Profit	-259.67K	38.22M	39.51M	14.53M	38.94M
EBITDA	2.77M	-7.59M	567.74K	-5.71M	22.19M
Net Income	-2.66M	-12.26M	-5.56M	-8.01M	15.19M
Balance Sheet
Total Assets	232.93M	249.34M	301.21M	277.49M	287.38M
Cash, Cash Equivalents and Short-Term Investments	12.04M	11.11M	24.66M	51.09M	72.88M
Total Debt	13.96M	29.96M	32.84M	25.95M	23.82M
Total Liabilities	53.93M	67.66M	105.85M	76.41M	54.60M
Stockholders Equity	179.01M	181.68M	195.37M	201.08M	232.79M
Cash Flow
Free Cash Flow	20.81M	-6.86M	-23.22M	20.46M	-12.24M
Operating Cash Flow	20.86M	-6.84M	-23.19M	20.74M	-12.22M
Investing Cash Flow	7.46M	7.97M	-5.11M	13.68M	-7.21M
Financing Cash Flow	-20.51M	-4.01M	5.44M	-16.05M	-2.71M

CL Group (Holdings) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8098, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.04, and above the 200-day MA of 0.04, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 69.57 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8098.

CL Group (Holdings) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
8193	59 Neutral	HK$117.52M	0.41	47.82%	―	34.66%	―
8098	47 Neutral	HK$101.20M	3.19	-10.11%	―	-3.21%	-184.91%
0510	46 Neutral	HK$301.82M	-2.34	-14.47%	―	51.58%	69.53%
0821	42 Neutral	HK$100.44M	-0.54	-28.22%	―	―	48.53%
8123	41 Neutral	HK$77.49M	5.56	-439.49%	―	-81.40%	-435.00%