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

• Market Cap: HK$771.12M
• Dividend Yield: N/A
• Average Volume (3M): 6.14M
• Price to Earnings (P/E): ―
• Beta (1Y): -0.15
• Revenue Growth: -0.84%
• EPS Growth: 72.06%
• Country: HK
• Employees: 67
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.00
• Shares Outstanding: 1,512,000,000
• 10 Day Avg. Volume: 3,877,000
• 30 Day Avg. Volume: 6,142,666
• PEG Ratio: 0.71
• Price to Book (P/B): 4.06
• Price to Sales (P/S): 1.34
• P/FCF Ratio: -45.49
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$0.50 ▼(-16.67% Downside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenue and profitability issues. Technical analysis provides some positive momentum, but overbought signals suggest caution. Valuation metrics are unfavorable due to ongoing losses.

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

Company Description

Tong Kee (Holding) Ltd. (8305) is a company primarily engaged in the construction and engineering sectors. The company offers a range of services that include civil engineering, electrical and mechanical engineering, as well as building construction. With a focus on delivering high-quality infrastructure projects, Tong Kee serves both public and private sector clients, providing comprehensive solutions that span from project design to execution.

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: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 0.6 is above the 20-day moving average (MA) of 0.46, above the 50-day MA of 0.35, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 84.23 is Negative, neither overbought nor oversold. The STOCH value of 88.89 is Negative, 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
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$190.00M	7.89	6.66%	14.58%	13.59%	-12.52%
8305	55 Neutral	HK$771.12M	―	-8.56%	―	-0.84%	72.06%
6063	54 Neutral	HK$430.00M	128.13	2.51%	―	7.08%	-5.88%
1746	47 Neutral	HK$355.00M	―	-4.80%	―	-30.56%	-160.00%
8021	43 Neutral	HK$272.97M	8.18	-1.80%	―	-3.98%	37.50%