K W Nelson Interior Design and Contracting Group Limited (8411) AI Stock Analysis

• Market Cap: HK$139.58M
• Dividend Yield: 25%
• Average Volume (3M): 58.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.11
• Revenue Growth: 57.17%
• EPS Growth: 41.54%
• Country: HK
• Employees: 13
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 1,000,000,000
• 10 Day Avg. Volume: 3,000
• 30 Day Avg. Volume: 58,333
• PEG Ratio: 0.53
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 3.44
• P/FCF Ratio: -8.47
• 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: 47 Neutral
• Price Target: HK$0.07 ▲(1.43% Upside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

The score is held back primarily by weak financial performance, including multi-year revenue decline, ongoing losses, and deteriorating/limited cash generation. Technicals are also soft, with the stock trading below its 20-day average and oversold momentum signals. Valuation is the main offset due to the very high dividend yield, but a negative P/E underscores continued profitability risk.

Positive Factors

Integrated service revenue streams

Multiple, complementary revenue streams (design, project management, contracting and supplier margins) reduce dependence on any single source. This integrated model supports cross-selling, steadier billing and higher client lifetime value, improving resilience over months.

Low leverage / strong equity base

A low debt-to-equity profile and relatively strong equity position provide financial flexibility and lower default risk. This capital structure helps the firm withstand project timing shocks and pursue selective contracts without heavy interest burdens over the medium term.

Reputation and repeat business

An established portfolio and market reputation act as durable competitive advantages for a services firm, reducing client acquisition costs and improving win rates. Over months, steady referral and repeat work supports revenue stability and helps protect margins.

Negative Factors

Multi-year revenue decline and margin compression

Sustained revenue declines and shrinking gross margins indicate weakening pricing power and lost scale economies. Persistent negative EBIT and net losses impair reinvestment capacity, hinder competitive bidding on projects and raise the risk of continued operational deterioration over the medium term.

Weak operating and free cash flow

Collapse of operating cash flow to zero and negative free cash flow constrain working capital and capital expenditure plans. Poor cash generation increases reliance on external funding, heightens execution risk on contracts and limits ability to invest in growth or withstand project delays.

Shrinking assets and equity

Material declines in total assets and shareholders' equity erode the financial cushion and reduce collateral for project financing. Lower equity levels limit strategic flexibility, increase solvency risk and make it harder to scale operations or absorb further revenue shocks over coming months.

K W Nelson Interior Design and Contracting Group Limited Business Overview & Revenue Model

Company Description

K W Nelson Interior Design and Contracting Group Limited, an investment holding company, operates as an interior decorator for commercial premises in the People's Republic of China. The company offers pre-lease advisory, interior design, space planning, project management, fitting-out, construction, maintenance for tailor made sections, and after sales services. It serves multi-national companies from various industries, such as banking, retail, healthcare, legal services, catering, education, energy, insurance, telecommunications, property management, and logistics management. The company was formerly known as K W Nelson Interior Architect Group Limited and changed its name to K W Nelson Interior Design and Contracting Group Limited in August 2017. K W Nelson Interior Design and Contracting Group Limited was incorporated in 2009 and is headquartered in Quarry Bay, Hong Kong.

How the Company Makes Money

The company generates revenue through multiple streams, primarily by charging clients for design services, project management fees, and contracting work. Key revenue streams include fees for initial consultations, design proposals, and contracts for construction services, where they may charge a percentage of the total project cost. Additionally, K W Nelson may benefit from strategic partnerships with suppliers of design materials and furnishings, allowing them to offer exclusive products to clients while earning a margin on sales. Their reputation and portfolio of successful projects also play a significant role in attracting new clients and securing repeat business.

K W Nelson Interior Design and Contracting Group Limited Financial Statement Overview

Summary

Income statement and cash flow are weak: revenue has materially declined over multiple years, margins have compressed, and EBIT/net income remain negative. Operating cash flow fell to zero in 2024 and free cash flow has been negative or minimal. The balance sheet shows low leverage, but shrinking assets and equity raise sustainability risk.

Income Statement

The company's revenue has significantly declined over the years, with a negative revenue growth rate from 2019 to 2024. Gross profit margins have been decreasing, and the company has consistently recorded negative EBIT and net income, indicating ongoing profitability challenges.

Balance Sheet

The company maintains a strong equity position relative to its total assets, with a low debt-to-equity ratio, indicating limited leverage. However, the large declines in stockholders' equity and total assets over the years suggest potential sustainability issues.

Cash Flow

The company has struggled with operating cash flow, seeing a significant decline from positive cash flows in earlier years to zero in 2024. Free cash flow has also been negative or minimal, indicating cash generation challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.21M	21.54M	28.89M	42.52M	44.09M	82.36M
Gross Profit	8.50M	6.78M	8.44M	11.95M	9.13M	35.64M
EBITDA	-4.17M	-1.72M	-4.42M	-1.34M	-3.21M	22.64M
Net Income	-3.63M	-3.34M	-5.69M	-3.40M	-5.17M	16.75M
Balance Sheet
Total Assets	66.41M	66.11M	69.63M	80.36M	150.34M	157.53M
Cash, Cash Equivalents and Short-Term Investments	54.54M	52.73M	59.03M	63.84M	119.23M	113.65M
Total Debt	717.00K	934.00K	277.00K	749.00K	653.00K	631.00K
Total Liabilities	6.79M	4.32M	4.33M	8.14M	20.82M	15.49M
Stockholders Equity	59.62M	61.80M	65.30M	72.22M	129.51M	142.03M
Cash Flow
Free Cash Flow	-4.36M	-8.76M	-4.81M	-287.00K	13.22M	25.26M
Operating Cash Flow	-4.01M	-10.55M	-4.81M	98.00K	17.34M	25.27M
Investing Cash Flow	35.57M	1.11M	406.00K	-704.00K	-42.24M	476.00K
Financing Cash Flow	-360.50K	-562.00K	-1.63M	-54.71M	-8.18M	-3.24M

K W Nelson Interior Design and Contracting Group Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.07
• 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:8411, the sentiment is Positive. The current price of 0.07 is below the 20-day moving average (MA) of 0.13, below the 50-day MA of 0.10, and below the 200-day MA of 0.08, indicating a bullish trend. The MACD of 0.01 indicates Positive momentum. The RSI at 63.04 is Neutral, neither overbought nor oversold. The STOCH value of 67.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8411.

K W Nelson Interior Design and Contracting Group 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%
0784	52 Neutral	HK$224.00M	48.23	-38.18%	―	-9.05%	-678.72%
1630	49 Neutral	HK$105.00M	23.50	-16.01%	―	-28.21%	34.59%
3789	49 Neutral	HK$142.80M	4.72	0.18%	―	-2.05%	―
8411	47 Neutral	HK$139.58M	-13.83	-5.97%	25.00%	57.17%	41.54%
1591	47 Neutral	HK$74.67M	-1.08	-12.80%	―	11.27%	-1272.22%
1546	45 Neutral	HK$156.80M	-0.77	-48.75%	―	54.20%	-833.33%