Tai Kam Holdings Limited (8321) AI Stock Analysis

• Market Cap: HK$236.54M
• Dividend Yield: N/A
• Average Volume (3M): 686.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: 6.34%
• EPS Growth: 48.38%
• Country: HK
• Employees: 21
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• 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$0.97 ▲(17.35% 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 debt-free balance sheet reduces refinancing and interest-rate risk, providing financial stability and flexibility for future investments.

Revenue Rebound

The rebound in revenue indicates potential recovery and market demand, which could lead to improved financial performance if sustained.

Narrowing Losses

Narrowing losses suggest improving operational efficiency and cost management, which are critical for achieving long-term profitability.

Negative Factors

Negative Cash Flow

Negative cash flow indicates potential liquidity issues and challenges in sustaining operations without external funding, impacting long-term viability.

Thin Margins

Thin margins limit profitability and buffer against cost increases, posing a risk to financial health if not improved.

Equity Erosion

Declining equity reflects ongoing value erosion, which can undermine investor confidence and limit growth opportunities.

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

Tai Kam Holdings Limited shows mixed financial performance. While the balance sheet is strong with zero debt and a healthy equity ratio, the company faces challenges with declining revenue and net losses. Cash flow trends have improved but need sustained positive movement for enhanced stability.

Income Statement

Tai Kam Holdings Limited has been experiencing a declining trend in revenue with a significant drop from HKD 192.98 million in 2020 to HKD 38.13 million in 2024. The gross profit margin has also decreased substantially, highlighting potential inefficiencies or increased costs. The company has reported net losses in recent years, reflecting negative net profit margins, which suggest challenges in profitability.

Balance Sheet

The company's balance sheet shows a strong equity position with zero debt in 2024, resulting in a favorable debt-to-equity ratio. The equity ratio remains healthy at over 77%, indicating a stable financial structure. Despite a reduction in total assets, the company maintains a solid equity base, suggesting resilience in financial standing.

Cash Flow

Tai Kam Holdings Limited has shown improvement in operating cash flow, turning positive in 2024, which is a positive turnaround from previous years. However, free cash flow has been volatile. The operating cash flow to net income ratio is positive, indicating some operational efficiency despite overall losses.

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: Neutral

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 0.90, above the 50-day MA of 0.66, and above the 200-day MA of 0.34, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 67.44 is Neutral, 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$236.54M	-40.17	-9.52%	―	6.34%	48.38%
1630	52 Neutral	HK$66.00M	-3.64	-14.78%	―	-28.21%	34.59%
1591	47 Neutral	HK$74.67M	-3.32	-12.77%	―	11.27%	-1272.22%
1557	46 Neutral	HK$165.60M	-7.22	―	―	-52.58%	69.44%
2195	43 Neutral	HK$81.19M	-2.55	-19.00%	―	48.86%	54.49%