Tai Kam Holdings Limited (8321) AI Stock Analysis

• Market Cap: HK$273.50M
• Dividend Yield: N/A
• Average Volume (3M): 686.80K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 0.59
• 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: 53 Neutral
• Price Target: HK$1.00 ▲(20.48% Upside)

The score is held back primarily by weak financial performance—continued losses, very thin margins, and negative operating/free cash flow in 2025—despite the benefit of a debt-free balance sheet. Offsetting this, technical indicators show strong positive price momentum. Valuation remains a concern because earnings are negative and there is no dividend yield data to support the risk profile.

Positive Factors

Debt-free balance sheet

A zero-debt balance sheet materially reduces refinancing and interest-rate exposure for an engineering & construction firm, preserving financial flexibility through project cycles. This structural strength supports investment or weathering slow periods without immediate external financing.

Revenue recovery in 2025

A clear revenue rebound implies recovering demand and better capacity utilization. Over a 2–6 month horizon this supports operating leverage, aids margin improvement potential, and signals that the firm can scale activity to pursue sustainable profitability if the trend persists.

Improving cash burn trend

Reduced magnitude of negative free cash flow versus earlier years indicates progress on cost control or working-capital management. If sustained, this structural improvement lowers future financing needs and increases runway for executing strategic turnaround initiatives.

Negative Factors

Persistently thin gross margins

A ~4% gross margin in construction-related activities leaves little buffer to cover SG&A, project overruns, or pricing pressure. Structurally thin margins make it difficult to achieve durable profitability and increase vulnerability to cost inflation or contract disputes over the medium term.

Negative operating cash flow in 2025

Materially negative operating cash flow signals weak cash conversion and possible working-capital strain. Even with zero debt, recurring negative OCF necessitates external funding or asset sales, constraining strategic options and increasing liquidity risk absent sustained cash-flow recovery.

Eroding equity and negative ROE

Declining equity and a negative return on equity reflect ongoing value erosion from losses. Over the medium term, restoring positive ROE is essential to rebuild capital and investor confidence; continued negative returns threaten long-term capital base and growth funding.

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

Improving but still weak fundamentals: revenue rebounded in 2025 and losses narrowed, but the company remains loss-making with thin gross margins (~4.2%). Cash flow is the key drag, with operating and free cash flow turning negative in 2025, despite a strong low-risk balance sheet position (zero debt).

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

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 1.13, below the 50-day MA of 0.98, and above the 200-day MA of 0.44, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.05 is Neutral, neither overbought nor oversold. The STOCH value of 3.33 is Positive, 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	53 Neutral	HK$273.50M	9.96	-9.52%	―	6.34%	48.38%
1630	53 Neutral	HK$130.50M	-7.19	-14.78%	―	-28.21%	34.59%
1557	49 Neutral	HK$206.40M	-9.00	―	―	-52.58%	69.44%
1591	47 Neutral	HK$57.60M	-3.41	-12.77%	―	11.27%	-1272.22%
2195	43 Neutral	HK$76.96M	-2.41	-19.00%	―	48.86%	54.49%