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

• Market Cap: HK$430.92M
• Dividend Yield: N/A
• Average Volume (3M): 4.10M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.18
• Revenue Growth: -0.84%
• EPS Growth: 72.06%
• Country: HK
• Employees: 67
• Sector: Industrials
• Sector Strength: 71
• Industry: Engineering & Construction
• EPS (TTM): 0.00
• Shares Outstanding: 1,512,000,000
• 10 Day Avg. Volume: 3,723,000
• 30 Day Avg. Volume: 4,102,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 78.57% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: HK$0.50 ▲(78.57% Upside)

The overall stock score reflects significant financial challenges and a poor valuation, offset by positive technical momentum. The company's declining revenue and persistent losses are major concerns, while technical indicators suggest short-term strength. The lack of earnings call data and corporate events limits additional insights.

Positive Factors

Diverse Revenue Streams

Tong Kee's diverse revenue streams from various engineering services provide resilience against sector-specific downturns, supporting long-term stability.

Government Contracts

Engagement in government contracts and infrastructure projects ensures a steady income stream, enhancing financial stability and growth potential.

Project-Based Revenue Model

A project-based revenue model allows for flexibility and scalability, enabling Tong Kee to adjust to market demands and secure large-scale projects.

Negative Factors

Declining Revenue

Persistent revenue decline indicates potential market share loss or operational inefficiencies, threatening long-term profitability and growth.

Negative Profit Margins

Negative profit margins highlight cost management issues and pricing pressures, undermining the company's ability to generate sustainable profits.

Cash Flow Volatility

Volatile cash flow reflects inefficiencies in operations and financial management, limiting the company's capacity for reinvestment and strategic growth.

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

Company Description

Sheng Tang Holdings Limited, an investment holding company, operates as a multi-disciplinary contractor in the construction industry in Hong Kong. The company provides repair, alteration and addition, maintenance, modification, rehabilitation, steel, civil, and demolition works in various venues, such as residential and commercial buildings, carparks, roads, footbridges, and theme parks. It also offers various constructions and related alterations, and additions works and facilities, including noise mitigation works, architectural metalworks, bus shelters, and dangerous goods store buildings, as well as structures, such as air balloons. In addition, the company provides various corrosion protection solutions comprising installation of cathodic protection systems that consists of sacrificial anodes protection and impressed current systems; and consultancy services. The company was formerly known as Allurefem Holding Limited and changed its name to Sheng Tang Holdings Limited in March 2025. Sheng Tang Holdings Limited was founded in 1994 and is headquartered in North Point, Hong Kong.

How the Company Makes Money

Tong Kee (Holding) Ltd. makes money through its diverse range of services in the construction and engineering industry. The company's revenue model is largely project-based, where they are contracted for various construction and engineering projects. Key revenue streams include fees for civil engineering services, electrical and mechanical installations, and general building construction. The company may also engage in partnerships or joint ventures for large-scale projects, which can significantly contribute to its earnings. Additionally, Tong Kee might benefit from long-term maintenance contracts and government infrastructure initiatives, which provide a steady flow of income.

Tong Kee (Holding) Ltd. Financial Statement Overview

Summary

Tong Kee (Holding) Ltd. faces significant financial challenges, with declining revenue and persistent losses. The balance sheet shows moderate leverage but concerning declines in assets and equity. Cash flow volatility indicates inefficiencies and a need for 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
EBITDA	-2.45M	-25.34M	-18.62M	-36.77M	3.54M
Net Income	-3.14M	-30.32M	-24.64M	-42.64M	-2.29M
Balance Sheet
Total Assets	138.10M	132.74M	188.08M	235.53M	181.37M
Cash, Cash Equivalents and Short-Term Investments	6.04M	362.00K	10.87M	9.73M	23.64M
Total Debt	7.22M	9.37M	34.07M	57.84M	39.82M
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	-4.41M	7.45M	7.06M	-21.21M	9.68M
Operating Cash Flow	-4.29M	7.45M	7.26M	-21.14M	14.88M
Investing Cash Flow	915.00K	-451.00K	18.38M	-1.76M	-5.38M
Financing Cash Flow	9.06M	-17.51M	-24.51M	9.00M	272.00K

Tong Kee (Holding) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.28
• 50DMA: Positive
• 100DMA: Positive
• 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 above the 20-day moving average (MA) of 0.28, above the 50-day MA of 0.27, and above the 200-day MA of 0.25, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 55.62 is Neutral, neither overbought nor oversold. The STOCH value of 45.83 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
1447	72 Outperform	HK$208.00M	8.55	6.66%	13.46%	13.59%	-12.52%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
8305	54 Neutral	HK$430.92M	―	-8.56%	―	-0.84%	72.06%
1746	47 Neutral	HK$330.00M	―	-4.80%	―	-30.56%	-160.00%
2163	―	HK$292.58M	―	-20.28%	―	―	―
6063	46 Neutral	HK$366.00M	114.38	2.51%	―	7.08%	-5.88%
8021	45 Neutral	HK$272.97M	8.18	-1.80%	―	-3.98%	37.50%