Luen Wong Group Holdings Ltd. (8217) AI Stock Analysis

• Market Cap: HK$117.73M
• Dividend Yield: N/A
• Average Volume (3M): 973.87K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 0.03
• Revenue Growth: -32.25%
• EPS Growth: N/A
• Country: HK
• Employees: 26
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.07
• Shares Outstanding: 301,860,000
• 10 Day Avg. Volume: 383,125
• 30 Day Avg. Volume: 973,865
• PEG Ratio: 0.16
• Price to Book (P/B): 2.32
• Price to Sales (P/S): 1.74
• P/FCF Ratio: -8.68
• 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: 52 Neutral
• Price Target: HK$0.37 ▼(-1.58% Downside)

The score is held back primarily by weak financial performance (shrinking revenue, ongoing losses, and negative 2025 operating/free cash flow). Offsetting this, technicals show an upward price trend with positive MACD, and valuation appears low on P/E, though fundamentals limit how much credit the low multiple deserves.

Positive Factors

Improvement in Net Losses

The reduction in net losses suggests potential operational improvements and cost management, which could lead to future profitability if sustained.

Moderate Leverage

Moderate leverage indicates a manageable debt level, providing some financial flexibility and reducing immediate solvency risk.

Occasional Strong Cash Flow

The ability to generate strong cash flow in certain years highlights potential for cash generation, which is crucial for funding operations and investments.

Negative Factors

Revenue Contraction

Significant revenue decline indicates a shrinking market presence and challenges in maintaining customer base, impacting long-term growth prospects.

Negative Cash Flow

Negative cash flow raises concerns about liquidity and the ability to fund operations without external financing, threatening financial stability.

Equity Decline

The decline in equity reflects cumulative losses, reducing the company's financial resilience and ability to absorb future shocks.

Luen Wong Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Ju Fu Tang Biotech Holdings Co., Ltd, an investment holding company, provides civil engineering, decoration, and renovation works in Hong Kong. The company offers road and drainage works, which includes construction and improvement of local road and carriageway junction improvement, as well as associated footpaths, planting areas, drains, sewers, water mains, and utilities diversion services. It also provides structural works, including construction of reinforced concrete structures for bridges and retaining walls; and site formation works, such as excavation and filling works for forming a new site or later development. The company was formerly known as WMHW Holdings Limited and changed its name to Ju Fu Tang Biotech Holdings Co., Ltd in September 2025. Ju Fu Tang Biotech Holdings Co., Ltd was incorporated in 2015 and is headquartered in Causeway Bay, Hong Kong.

How the Company Makes Money

Luen Wong Group Holdings Ltd. generates revenue through contracts for civil engineering services. The company's primary income comes from executing infrastructure projects such as roadworks, drainage systems, and site formations. They secure contracts through competitive bidding processes, often collaborating with governmental bodies or private developers. Key revenue streams include service fees for project management, construction execution, and maintenance services. Strategic partnerships with other construction and engineering firms can enhance their project portfolio, thus influencing their income positively.

Luen Wong Group Holdings Ltd. Financial Statement Overview

Summary

Luen Wong Group Holdings Ltd. faces significant financial challenges, with declining revenues, persistent losses, and operational inefficiencies. The balance sheet shows high leverage and declining equity, raising concerns about financial stability. Cash flow volatility and reliance on financing indicate potential liquidity risks. Overall, the company needs significant improvement in its operational and financial strategies to enhance its financial health.

Income Statement

Luen Wong Group Holdings Ltd. has experienced significant revenue declines from 2020 to 2024, with a sharp drop of approximately 66% from 2023 to 2024. The company has consistently reported net losses over the years, with a negative net profit margin and gross profit margin in the latest period. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies and challenges in cost management.

Balance Sheet

The balance sheet shows a stable debt level but declining stockholders' equity, resulting in a high debt-to-equity ratio. The equity ratio has decreased, reflecting reduced financial stability. The return on equity is negative due to consistent net losses. While cash reserves are relatively stable, the overall financial leverage is high, suggesting potential risks in meeting long-term financial obligations.

Cash Flow

Cash flows have been volatile, with a significant drop in operating cash flow from 2023 to 2024. The company has managed to generate positive free cash flow in the latest year, but the operating cash flow to net income ratio is low due to ongoing losses. The free cash flow to net income ratio indicates reliance on external financing to maintain cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.30M	36.20M	35.14M	104.60M	92.75M	168.30M
Gross Profit	52.00K	982.00K	1.88M	-2.88M	1.04M	-2.28M
EBITDA	-6.87M	-5.10M	-16.63M	-9.13M	-19.14M	-12.94M
Net Income	-6.50M	-5.90M	-17.43M	-9.96M	-20.15M	-13.13M
Balance Sheet
Total Assets	80.36M	80.36M	81.55M	105.51M	144.35M	163.21M
Cash, Cash Equivalents and Short-Term Investments	30.17M	30.17M	26.71M	44.22M	44.70M	47.70M
Total Debt	12.00M	12.00M	12.00M	12.00M	12.15M	12.41M
Total Liabilities	53.15M	53.15M	48.44M	54.96M	83.83M	138.44M
Stockholders Equity	27.22M	27.22M	33.12M	50.55M	60.51M	24.76M
Cash Flow
Free Cash Flow	-7.27M	-7.27M	3.72M	32.23M	-19.52M	28.54M
Operating Cash Flow	-7.27M	-7.27M	3.72M	32.23M	-19.52M	28.54M
Investing Cash Flow	0.00	0.00	0.00	806.00K	90.00K	4.39M
Financing Cash Flow	5.38M	5.38M	-7.87M	-33.09M	12.05M	-21.18M

Luen Wong Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 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:8217, the sentiment is Positive. The current price of 0.38 is above the 20-day moving average (MA) of 0.36, above the 50-day MA of 0.31, and above the 200-day MA of 0.27, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 69.85 is Neutral, neither overbought nor oversold. The STOCH value of 88.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8217.

Luen Wong Group Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2227	60 Neutral	HK$142.83M	8.25	5.68%	―	23.93%	425.00%
1486	58 Neutral	HK$259.43M	4.64	11.15%	―	4.56%	―
1751	56 Neutral	HK$603.83M	-36.05	-53.25%	―	-45.46%	-329.88%
8217	52 Neutral	HK$117.73M	5.82	52.51%	―	-32.25%	―
1413	47 Neutral	HK$126.28M	-0.91	-40.10%	―	-70.99%	-2956.76%
6816	45 Neutral	HK$160.00M	-0.96	-98.05%	―	14.57%	13.79%