CNC Holdings Limited (8356) AI Stock Analysis

• Market Cap: HK$26.04M
• Dividend Yield: N/A
• Average Volume (3M): 53.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• Revenue Growth: -2.90%
• EPS Growth: -314.04%
• Country: HK
• Employees: 224
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.15
• Shares Outstanding: 57,220,165
• 10 Day Avg. Volume: 88,550
• 30 Day Avg. Volume: 53,843
• PEG Ratio: >-0.01
• Price to Book (P/B): -1.12
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -4.47
• 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: 39 Underperform
• Price Target: HK$0.34 ▼(-11.84% Downside)

CNC Holdings Limited's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis indicates a bearish trend, while valuation metrics reflect financial distress with a negative P/E ratio. The lack of earnings call data and corporate events does not alter the negative outlook.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance product offerings and market reach, supporting long-term revenue growth and competitive positioning.

Economies of Scale

Economies of scale allow CNC Holdings to maintain competitive pricing and improve profit margins, strengthening its market position.

Free Cash Flow Improvement

Improved free cash flow indicates better cash generation ability, enhancing financial flexibility and supporting future investments.

Negative Factors

Revenue Decline

A significant revenue decline suggests challenges in market demand or competitive positioning, impacting long-term growth prospects.

High Leverage

High leverage and negative equity indicate financial instability, limiting the company's ability to invest in growth opportunities.

Negative Profitability Margins

Negative profitability margins reflect operational inefficiencies and competitive pressures, challenging long-term financial health.

CNC Holdings Limited Business Overview & Revenue Model

Company Description

CNC Holdings Limited, an investment holding company, primarily provides civil engineering services in Hong Kong and the People's Republic of China. It operates through Provision of Civil Engineering Services and Media and Advertising Business segments. The company provides waterworks engineering, road works and drainage, and site formation works for the public sector in Hong Kong, as well as laying of water pipes. It also broadcasts television programs on television channels operated by television broadcasting companies in the Asia-Pacific region. In addition, the company engages in advertising business. The company was formerly known as Tsun Yip Holdings Limited and changed its name to CNC Holdings Limited in February 2012. CNC Holdings Limited was founded in 1989 and is headquartered in Wanchai, Hong Kong.

How the Company Makes Money

CNC Holdings Limited generates revenue through several key streams, primarily from the sale of manufactured goods across its various sectors. The company operates on a business-to-business model, supplying products to wholesalers and retailers worldwide. Additional revenue is derived from strategic partnerships with other manufacturers, which allows CNC Holdings to expand its product offerings and market reach. The company also benefits from economies of scale in production, which helps in maintaining competitive pricing and improving profit margins. Furthermore, CNC Holdings may engage in contract manufacturing services, providing tailored production solutions for clients, contributing significantly to its overall earnings.

CNC Holdings Limited Financial Statement Overview

Summary

CNC Holdings Limited is experiencing significant financial challenges. The income statement shows a substantial revenue decline and negative profitability margins. The balance sheet reveals high leverage and negative equity, indicating financial instability. Although there is some improvement in free cash flow, the overall cash flow situation remains problematic.

Income Statement

CNC Holdings Limited has faced significant challenges in its income statement. The company experienced a substantial revenue decline of 31.76% in the most recent year, indicating a downward trend. Gross profit margin is low at 2.71%, and the net profit margin is negative at -3.10%, reflecting ongoing profitability issues. The EBIT and EBITDA margins are also weak, suggesting operational inefficiencies.

Balance Sheet

The balance sheet of CNC Holdings Limited shows a concerning financial structure with negative stockholders' equity, leading to a negative debt-to-equity ratio. This indicates high leverage and potential financial instability. The equity ratio is also negative, further highlighting the company's financial vulnerability.

Cash Flow

Cash flow analysis reveals some positive aspects, such as a significant improvement in free cash flow growth at 86.32%. However, the operating cash flow is negative, and the operating cash flow to net income ratio is also negative, indicating cash flow challenges. The free cash flow to net income ratio is high, suggesting reliance on non-operational cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	500.04M	366.07M	468.96M	496.46M	408.18M	239.23M
Gross Profit	10.88M	9.93M	18.06M	3.42M	-9.36M	-28.82M
EBITDA	-17.33M	3.74M	14.37M	11.19M	-10.17M	-31.00M
Net Income	-32.16M	-11.34M	-9.32M	-9.44M	-41.73M	-72.95M
Balance Sheet
Total Assets	133.28M	165.65M	218.96M	245.54M	213.48M	174.91M
Cash, Cash Equivalents and Short-Term Investments	38.84M	56.12M	48.22M	51.62M	42.56M	71.54M
Total Debt	42.56M	40.46M	302.96M	305.92M	305.85M	291.75M
Total Liabilities	181.75M	205.51M	622.39M	640.35M	598.79M	518.10M
Stockholders Equity	-49.53M	-40.93M	-405.11M	-396.28M	-386.80M	-345.10M
Cash Flow
Free Cash Flow	-22.75M	-10.24M	947.00K	14.39M	-29.37M	-19.44M
Operating Cash Flow	-18.18M	-1.07M	4.59M	20.98M	-22.85M	-7.90M
Investing Cash Flow	-5.31M	-8.13M	-2.77M	-4.83M	2.87M	-11.00M
Financing Cash Flow	-2.34M	17.09M	-5.72M	-7.05M	-4.28M	-6.17M

CNC Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8356, the sentiment is Negative. The current price of 0.38 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.41, and below the 200-day MA of 0.56, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 87.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8356.

CNC Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3822	71 Outperform	HK$68.04M	6.22	11.01%	10.34%	52.69%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1500	54 Neutral	HK$122.84M	4.76	10.02%	―	-17.67%	1010.71%
1718	48 Neutral	HK$53.81M	-0.49	-46.48%	―	-0.64%	13.72%
1802	44 Neutral	HK$37.42M	0.04	―	―	―	―
2113	40 Neutral	HK$61.16M	―	―	―	-23.73%	―
8356	39 Underperform	HK$26.04M	―	―	―	-2.90%	-314.04%