M&L Holdings Group Limited (8152) AI Stock Analysis

• Market Cap: HK$51.60M
• Dividend Yield: N/A
• Average Volume (3M): 40.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: -47.24%
• EPS Growth: -626.32%
• Country: HK
• Employees: 41
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 31,000
• 30 Day Avg. Volume: 40,333
• PEG Ratio: 0.01
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 8.04
• 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: 46 Neutral
• Price Target: HK$0.08 ▲(20.00% Upside)

The score is weighed down primarily by weak financial performance, including a major revenue drop, losses, and zero operating cash flow/negative free cash flow. Technicals are supportive in the near term (price above key moving averages and positive MACD) but are offset by overbought signals. Valuation is not supportive because the negative P/E reflects unprofitable operations, and there is no dividend yield data.

Positive Factors

Improved leverage

Improved debt-to-equity to 0.25 signals reduced leverage, lowering interest burdens and improving financial flexibility. This durable balance-sheet improvement enhances capacity to withstand shocks and access financing, supporting operations over the next several quarters.

Resilient gross margin

A gross profit margin around mid-30s indicates the company retains healthy unit economics in its distribution activities. Sustained mid-30s gross margins provide room to absorb SG&A and help restore operating profitability if volumes rebound, supporting long-term recovery.

Reasonable equity position

A relatively stable equity ratio and reasonable equity position provide a capital cushion against losses and support creditor confidence. This structural equity buffer helps the company absorb setbacks and maintain access to capital markets or lenders during restructuring or growth phases.

Negative Factors

Severe revenue decline

Revenue plunged ~56% YoY, eroding scale and fixed-cost absorption. A persistent top-line collapse damages customer and supplier relationships, reduces operating leverage, and makes recovery harder; reversing this decline is critical to restore margins and long-term viability.

Cash flow deterioration

Operating cash flow fell to zero and free cash flow turned negative, indicating the business is no longer self-funding. This structural cash shortfall forces reliance on external financing, limits capex, and increases liquidity risk, constraining strategic options over months.

Negative operating profitability

Negative net margin with negative EBIT/EBITDA shows core operations are loss-making. Persistent operating losses destroy equity, limit reinvestment, and may require restructuring or capital injections to avoid solvency stress, posing a major long-term fundamental concern.

M&L Holdings Group Limited Business Overview & Revenue Model

Company Description

M&L Holdings Group Limited, an investment holding company, engages in the trading and leasing of construction machinery and spare parts in Hong Kong, the People's Republic of China, Singapore, and internationally. The company operates through two segments, Tunnelling and Foundation. It supplies specialized cutting tools and parts for construction equipment, and fabricated construction steelworks and equipment, as well as provides repair and maintenance services. It is also involved in the property investment business. It serves tunneling construction sites and tunneling equipment manufacturers. The company was founded in 1994 and is headquartered in Tsimshatsui, Hong Kong. M&L Holdings Group Limited is a subsidiary of JAT United Company Limited.

How the Company Makes Money

M&L Holdings Group Limited generates revenue through multiple key channels. Primarily, the company earns income from its property investments by leasing out commercial and residential spaces, which provides a steady stream of rental income. Additionally, M&L Holdings profits from its hospitality segment, where it manages hotels and resorts, earning revenue from room bookings, dining services, and event hosting. Furthermore, the company may engage in property sales, which can yield substantial profits. Strategic partnerships with real estate developers and hospitality brands enhance its market reach and operational capabilities, contributing to its overall earnings. The company also seeks to optimize its asset portfolio through strategic acquisitions and disposals, which can further bolster its financial performance.

M&L Holdings Group Limited Financial Statement Overview

Summary

Weak financial performance driven by a sharp revenue decline (down 55.96% YoY), profitability deterioration (net margin turned negative with negative EBIT/EBITDA), and severe cash generation issues (operating cash flow fell to zero and free cash flow turned negative). Balance sheet leverage is moderate with improved debt-to-equity (0.25), but declining equity/assets adds concern.

Income Statement

The income statement reveals significant challenges for M&L Holdings Group Limited. Gross profit margin has decreased to 34.65% in 2024 from 36.07% in 2023, indicating reduced pricing power or higher costs. The net profit margin turned negative, with a substantial loss in 2024, driven by declining revenues and negative EBIT and EBITDA margins. Revenue also saw a dramatic drop of 55.96% from 2023 to 2024, reflecting potential market or operational issues.

Balance Sheet

The balance sheet indicates moderate financial stability but highlights some concerning trends. The debt-to-equity ratio improved slightly to 0.25 in 2024 from 0.32 in 2023, suggesting a reduction in leverage. However, stockholders' equity decreased, and total assets declined, indicating possible erosion in asset base. The equity ratio remains relatively stable, suggesting a reasonable equity position, but the company needs to manage liabilities prudently.

Cash Flow

Cash flow analysis shows significant weaknesses, with operating cash flow dropping to zero in 2024 from $8.4 million in 2023, indicating challenges in generating cash from operations. Free cash flow also turned negative due to the absence of positive operating cash flow, raising concerns about liquidity and the ability to fund operations without external financing. The lack of cash flow growth and negative operating cash flow to net income ratio highlights liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	57.22M	67.71M	153.75M	87.05M	85.99M	70.94M
Gross Profit	20.93M	23.47M	55.46M	29.26M	21.07M	21.53M
EBITDA	-5.12M	-3.73M	16.84M	-3.37M	-3.42M	-123.00K
Net Income	-8.27M	-12.83M	6.89M	-8.45M	-9.06M	-5.38M
Balance Sheet
Total Assets	161.48M	168.42M	180.60M	194.83M	198.78M	205.12M
Cash, Cash Equivalents and Short-Term Investments	31.10M	23.39M	28.30M	28.24M	25.97M	21.06M
Total Debt	16.91M	25.03M	33.18M	35.50M	38.48M	29.06M
Total Liabilities	64.06M	68.27M	75.91M	99.60M	95.36M	97.37M
Stockholders Equity	96.33M	98.96M	103.32M	94.22M	102.27M	106.41M
Cash Flow
Free Cash Flow	-18.79M	5.59M	7.73M	7.50M	-623.00K	-2.87M
Operating Cash Flow	-4.06M	6.16M	8.41M	7.88M	-37.00K	-2.31M
Investing Cash Flow	14.85M	-727.00K	-881.00K	-534.00K	-787.00K	-546.00K
Financing Cash Flow	-8.64M	-9.97M	-7.44M	-4.88M	5.79M	-1.45M

M&L Holdings Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8152, the sentiment is Positive. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.07, and above the 200-day MA of 0.06, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 71.83 is Negative, neither overbought nor oversold. The STOCH value of 89.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8152.

M&L Holdings Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3728	68 Neutral	HK$64.83M	7.86	6.32%	―	46.37%	-22.94%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
8201	59 Neutral	HK$61.02M	-8.90	-3.59%	―	2.94%	-56.79%
2147	51 Neutral	HK$51.74M	-0.30	-28.48%	―	56.39%	-86.79%
8152	46 Neutral	HK$51.60M	-6.30	-8.62%	―	-47.24%	-626.32%
2110	41 Neutral	HK$32.40M	-0.63	-58.76%	―	-9.20%	32.32%
6189	38 Underperform	HK$17.35M	―	―	―	―	―