Tong Kee (Holding) Ltd. (8305) AI Stock Analysis

• Market Cap: HK$340.20M
• Dividend Yield: N/A
• Average Volume (3M): 1.73M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.31
• Revenue Growth: 4.61%
• EPS Growth: 89.62%
• Country: HK
• Employees: 67
• Sector: Industrials
• Sector Strength: 90
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 1,260,000,000
• 10 Day Avg. Volume: 1,310,000
• 30 Day Avg. Volume: 1,733,333
• PEG Ratio: -1.13
• Price to Book (P/B): 5.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 167.26
• 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: 50 Neutral
• Price Target: ―

Tong Kee (Holding) Ltd. has a challenging financial outlook characterized by declining revenue and profitability issues. The technical analysis suggests mixed short-term momentum, while the valuation highlights significant risk due to negative earnings and lack of dividends. Overall, strategic improvements are needed to enhance the financial and operational stability of the company.

Tong Kee (Holding) Ltd. Business Overview & Revenue Model

Company Description

Tong Kee (Holding) Ltd. (8305) is a company operating in the construction and engineering sector, primarily engaged in the provision of construction services. The company specializes in building works, including new building construction, renovation, and maintenance, with a focus on both public and private sector projects in Hong Kong.

How the Company Makes Money

Tong Kee (Holding) Ltd. generates revenue through its comprehensive range of construction services. The company's key revenue streams include new construction projects, renovation works, and maintenance services. These projects often involve contracts with government bodies, private developers, and corporate clients. The company earns income through the execution of these projects, which are often secured through competitive bidding processes. Additionally, significant partnerships with suppliers and subcontractors help optimize project delivery and cost management, contributing to the company's profitability.

Tong Kee (Holding) Ltd. Financial Statement Overview

Summary

Tong Kee (Holding) Ltd. faces significant financial challenges with declining revenue and persistent losses, indicating difficulties in maintaining profitability. The balance sheet shows moderate leverage, but declining assets and equity are concerning. Cash flow volatility adds complexity to the financial outlook, requiring strategic improvements.

Income Statement

The company has been experiencing declining revenue over the past few years, with a negative revenue growth rate from 2019 to 2024. Gross profit margin has also decreased, reflecting potential issues in cost management or pricing power. Net profit margin remains negative, indicating ongoing profitability challenges. The negative EBIT and EBITDA margins further emphasize operational inefficiencies.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a manageable level of leverage. However, the declining equity ratio and negative return on equity suggest that the company is not generating adequate returns on shareholder investment. The trend of decreasing total assets over the years also poses concerns about asset management.

Cash Flow

Operating cash flow has been volatile, with significant fluctuations over the years. The absence of free cash flow growth highlights the company's challenges in generating cash from operations. The operating cash flow to net income ratio is unfavorable, indicating inefficiencies in converting profits into cash. Additionally, the free cash flow to net income ratio suggests insufficient cash available for reinvestment and growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
150.02M	143.41M	185.01M	154.25M	173.48M
	Gross Profit
9.78M	7.86M	22.49M	17.08M	22.77M
	EBIT
-4.09M	-25.28M	-23.93M	-41.85M	-1.08M
	EBITDA
-2.45M	-25.34M	-18.62M	-36.77M	3.54M
	Net Income Common Stockholders
-3.14M	-30.32M	-24.64M	-42.64M	-2.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.04M	362.00K	10.87M	9.73M	23.64M
	Total Assets
138.10M	132.74M	188.08M	235.53M	181.37M
	Total Debt
7.22M	9.37M	34.07M	57.84M	39.82M
	Net Debt
1.18M	9.00M	23.20M	48.10M	16.18M
	Total Liabilities
88.70M	91.27M	116.28M	139.10M	99.35M
	Stockholders Equity
49.40M	41.47M	71.79M	96.43M	82.02M
Cash Flow		Free Cash Flow
0.00	7.45M	7.06M	-21.21M	9.68M
	Operating Cash Flow
0.00	7.45M	7.26M	-21.14M	14.88M
	Investing Cash Flow
0.00	-451.00K	18.38M	-1.76M	-5.38M
	Financing Cash Flow
0.00	-17.51M	-24.51M	9.00M	272.00K

Tong Kee (Holding) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8305, the sentiment is Positive. The current price of 0.28 is below the 20-day moving average (MA) of 0.28, below the 50-day MA of 0.30, and above the 200-day MA of 0.18, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.34 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8305.

Tong Kee (Holding) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0838	72 Outperform	€1.26B	5.22	7.82%	7.01%	1.85%	2.72%
6821	69 Neutral	HK$33.66B	23.59	5.72%	2.77%	-15.81%	-48.17%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
6178	61 Neutral	€79.67B	12.09	4.53%	5.85%	0.05%	-32.78%
6088	55 Neutral	HK$17.01B	14.13	6.27%	―	5.75%	18.75%
8305	50 Neutral	HK$340.20M	―	-6.91%	―	4.61%	89.62%
1628	20 Underperform	HK$379.06M	―		―	-55.88%	-10.72%