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

• Market Cap: HK$83.01M
• Dividend Yield: N/A
• Average Volume (3M): 271.56K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.08
• Revenue Growth: 3.02%
• EPS Growth: 66.26%
• Country: HK
• Employees: 26
• Sector: Industrials
• Sector Strength: 80
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 301,860,000
• 10 Day Avg. Volume: 341,250
• 30 Day Avg. Volume: 271,562
• PEG Ratio: -0.02
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.81
• P/FCF Ratio: 7.62
• 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

• Rating: 45 Neutral
• Price Target: ―

Luen Wong Group Holdings Ltd.'s overall stock score of 44.9 reflects significant financial weaknesses, marked by declining revenues, persistent losses, and high leverage. Technical indicators show short-term positive momentum, but caution is warranted due to overbought conditions. The valuation is unattractive given the negative P/E ratio and lack of dividends, signaling limited investor appeal.

Luen Wong Group Holdings Ltd. Business Overview & Revenue Model

Company Description

Luen Wong Group Holdings Ltd. (8217) is a construction company based in Hong Kong. The company is primarily engaged in the provision of civil engineering works, including roads and drainage, site formation, and building works. Luen Wong Group Holdings serves both public and private sector clients, contributing to various infrastructure projects in 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 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	40.61M	35.14M	104.60M	92.75M	168.30M	354.88M
Gross Profit	4.14M	1.88M	-2.88M	1.04M	-2.28M	-20.20M
EBITDA	1.32M	-16.63M	-9.13M	-19.14M	-12.94M	-50.10M
Net Income	-2.50M	-17.43M	-9.96M	-20.15M	-13.13M	-55.57M
Balance Sheet
Total Assets	81.57M	81.55M	105.51M	144.35M	163.21M	215.15M
Cash, Cash Equivalents and Short-Term Investments	21.35M	26.71M	44.22M	44.70M	47.70M	20.91M
Total Debt	14.26M	12.00M	12.00M	12.15M	12.41M	698.00K
Total Liabilities	53.15M	48.44M	54.96M	83.83M	138.44M	183.93M
Stockholders Equity	28.42M	33.12M	50.55M	60.51M	24.76M	31.22M
Cash Flow
Free Cash Flow	7.86M	3.72M	32.23M	-19.52M	28.54M	-21.05M
Operating Cash Flow	7.86M	3.72M	32.23M	-19.52M	28.54M	-21.04M
Investing Cash Flow	0.00	0.00	806.00K	90.00K	4.39M	4.04M
Financing Cash Flow	-7.87M	-7.87M	-33.09M	12.05M	-21.18M	-450.00K

Luen Wong Group Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.29 is above the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.29, and above the 200-day MA of 0.22, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 41.79 is Neutral, 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
1729	66 Neutral	HK$23.43B	51.73		0.19%	―	―
1623	59 Neutral	€259.56M	8.51	0.86%	―	7.69%	-81.72%
Sector *	58 Neutral	HK$14.10B	4.53	-3.70%	5.60%	2.27%	-65.55%
1477	54 Neutral	HK$9.31B	―	-7.71%	―	74.73%	31.65%
8313	47 Neutral	HK$48.00M	―	-2.51%	―	-24.85%	54.55%
8217	45 Neutral	HK$83.01M	―	-19.55%	―	3.02%	66.26%