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Luen Wong Group Holdings Ltd. (HK:8217)
:8217
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Luen Wong Group Holdings Ltd.
(8217)
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Rating:45Neutral
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. (8217) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$78.48M
Dividend YieldN/A
Average Volume (3M)825.06K
Price to Earnings (P/E)―
Beta (1Y)<0.01
Revenue Growth3.02%
EPS Growth66.26%
CountryHK
Employees26
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)N/A
Shares Outstanding301,860,000
10 Day Avg. Volume1,162,875
30 Day Avg. Volume825,062
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)2.32
Price to Sales (P/S)1.74
P/FCF Ratio-8.68
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Luen Wong Group Holdings Ltd. Business Overview & Revenue Model
Company DescriptionLuen 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 MoneyLuen 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.30
Negative
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.45
Neutral
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.40
Negative
| 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
Negative
0.26
Price Trends
0.27
Negative
0.28
Negative
0.24
Positive
Market Momentum
>-0.01
Negative
47.75
Neutral
14.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8217, the sentiment is Negative. The current price of 0.26 is below the 20-day moving average (MA) of 0.26, below the 50-day MA of 0.27, and above the 200-day MA of 0.24, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 47.75 is Neutral, neither overbought nor oversold. The STOCH value of 14.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8217.
Luen Wong Group Holdings Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | HK$164.31M | 2.94 | 11.15% | ― | 4.56% | ― | |
57 Neutral | HK$241.92M | ― | -53.25% | ― | -45.46% | -329.88% | |
55 Neutral | HK$100.72M | 5.82 | 5.68% | ― | 23.93% | 425.00% | |
45 Neutral | HK$130.20M | -1.36 | -33.39% | ― | -34.49% | -496.53% | |
45 Neutral | HK$78.48M | ― | -19.55% | ― | 3.02% | 66.26% | |
43 Neutral | HK$174.40M | ― | -98.05% | ― | 14.57% | 13.79% |
* Industrials Sector Average
HK:8217
Luen Wong Group Holdings Ltd.
0.26
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.