Tai Kam Holdings Limited (8321) AI Stock Analysis

• Market Cap: HK$413.95M
• Dividend Yield: N/A
• Average Volume (3M): 686.80K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.49
• Revenue Growth: 6.34%
• EPS Growth: 48.38%
• Country: HK
• Employees: 21
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.13
• Shares Outstanding: 246,400,000
• 10 Day Avg. Volume: 394,400
• 30 Day Avg. Volume: 686,800
• PEG Ratio: 0.20
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 1.39
• P/FCF Ratio: -5.24
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: HK$2.00 ▲(140.96% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven by mixed financial performance—improving losses and a debt-free balance sheet are positives, but ongoing net losses and negative operating/free cash flow are major risks. Technicals are a near-term support with strong upward trend and positive momentum, while valuation looks reasonable based on the provided P/E but lacks dividend yield information.

Positive Factors

Debt-free balance sheet

Zero reported debt materially reduces refinancing and interest-rate risk and preserves financial flexibility. Over the next several months this durable low-leverage profile supports the company’s ability to withstand operating losses, delay external financing, and prioritize operational recovery or selective reinvestment.

Revenue rebound and narrower losses

A meaningful revenue recovery and sharply improved net margin show improving demand and operating leverage. This trend indicates progress toward sustainable earnings quality; if maintained it can underpin margin normalization and reduce the structural deficit over a multi-quarter horizon rather than being a one-off fluctuation.

Reduced cash burn vs earlier years

Although 2025 cash flow was negative, the sizable improvement versus prior years suggests management has begun to stabilize working capital or operating efficiencies. This trend toward lower cash burn is a durable positive if continued, improving runway and reducing the urgency for dilutive or expensive financing.

Negative Factors

Persistent thin gross margins

Very low gross margins limit the company’s ability to cover fixed costs and invest in growth without sustained top-line momentum or structural margin improvement. Over several quarters this constraint makes durable profitability harder to achieve and increases sensitivity to pricing, input costs, and contract mix.

Negative operating and free cash flow in 2025

Material negative operating and free cash flow signal weak cash conversion and working-capital pressure. Persisting cash outflows constrain investment, force reliance on reserves or external financing, and create execution risk over the coming months if operational improvements do not continue to reduce the cash deficit.

Equity erosion and negative ROE

Declining equity and negative ROE reflect recurring losses that erode shareholder capital. This structural weakness limits balance-sheet resilience, raises the probability of future capital raises on unfavorable terms, and impairs long-term investor confidence absent clear sustained profitability.

Tai Kam Holdings Limited Business Overview & Revenue Model

Company Description

Tai Kam Holdings Limited, an investment holding company, undertakes site formation works and renovation works in Hong Kong. Its site formation works include the piling, landslip preventive, and remedial works for improving or maintaining the stability of slopes and/or retaining walls; and fitting out works for premises. The company was incorporated in 2016 and is headquartered in Central, Hong Kong.

How the Company Makes Money

Tai Kam Holdings Limited generates revenue through its civil engineering services, focusing on site formation works. The company's key revenue streams include contracts with government bodies and private developers. Tai Kam Holdings secures these contracts by bidding on various public and private sector projects, leveraging its expertise and experience in the field. The company's earnings are significantly influenced by its ability to efficiently complete projects on time and within budget, maintaining strong relationships with clients and stakeholders to secure future contracts. Additionally, Tai Kam Holdings may engage in strategic partnerships or joint ventures to enhance its service offerings and expand its market reach.

Tai Kam Holdings Limited Financial Statement Overview

Summary

Financials are mixed. Revenue rebounded in 2025 and losses narrowed, but the company remains loss-making with thin gross margins and negative returns. Cash flow is a key risk, with operating and free cash flow turning negative in 2025 despite improvement versus earlier years.

Income Statement

Revenue has been highly volatile, with a sharp multi-year decline from 2020 to 2024 followed by a rebound in 2025 (+16.9% YoY). Profitability remains weak: gross margin is thin (about 4.2% in 2025) and the company is still loss-making, though losses narrowed meaningfully in 2025 versus 2024 (net margin improved from about -29.9% to -14.5%). Overall, the trajectory shows improving earnings quality in the latest year, but the business is not yet demonstrating sustainable profitability.

Balance Sheet

The balance sheet is conservatively positioned with zero debt in 2024 and 2025 and a debt-to-equity ratio at 0.0x, which reduces refinancing and interest-rate risk. However, equity has trended down over time (consistent with recurring losses), and returns on equity remain negative (about -10.0% in 2025), indicating ongoing value erosion despite the low leverage.

Cash Flow

Cash generation is inconsistent. Operating cash flow swung from positive in 2024 to materially negative in 2025 (about -10.7M), implying weaker cash conversion and/or working-capital pressure in the latest year. Free cash flow also turned negative in 2025, but the magnitude of cash burn improved substantially versus 2021–2022 levels, suggesting some progress even though cash flow stability remains a key risk.

Breakdown	Apr 2024	Apr 2023	Apr 2022	Apr 2021	Apr 2020
Income Statement
Total Revenue	40.55M	38.13M	97.33M	58.34M	137.78M
Gross Profit	1.72M	724.00K	1.96M	2.05M	4.12M
EBITDA	-5.89M	-11.41M	-31.47M	-18.49M	-9.77M
Net Income	-5.89M	-11.41M	-31.75M	-18.78M	-11.57M
Balance Sheet
Total Assets	77.62M	83.91M	93.99M	133.26M	156.13M
Cash, Cash Equivalents and Short-Term Investments	24.25M	33.25M	24.11M	31.16M	27.01M
Total Debt	0.00	0.00	0.00	13.99M	13.73M
Total Liabilities	18.73M	19.12M	17.79M	32.13M	38.56M
Stockholders Equity	58.90M	64.79M	76.20M	101.13M	117.57M
Cash Flow
Free Cash Flow	-10.71M	8.94M	-3.76M	-8.75M	-22.82M
Operating Cash Flow	-10.71M	8.94M	-3.76M	-8.75M	-22.82M
Investing Cash Flow	3.30M	0.00	-6.37M	380.00K	1.24M
Financing Cash Flow	0.00	0.00	1.74M	1.76M	9.28M

Tai Kam Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.83
• 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:8321, the sentiment is Positive. The current price of 0.83 is below the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.14, and above the 200-day MA of 0.52, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 79.01 is Negative, neither overbought nor oversold. The STOCH value of 90.64 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8321.

Tai Kam Holdings Limited 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%
8321	61 Neutral	HK$413.95M	15.08	-9.52%	―	6.34%	48.38%
1630	53 Neutral	HK$133.50M	-7.36	-14.78%	―	-28.21%	34.59%
1557	49 Neutral	HK$165.60M	-7.22	―	―	-52.58%	69.44%
1591	47 Neutral	HK$74.67M	-3.32	-12.77%	―	11.27%	-1272.22%
2195	43 Neutral	HK$71.04M	-2.23	-19.00%	―	48.86%	54.49%