Chi Ho Development Holdings Ltd (8423) AI Stock Analysis

• Market Cap: HK$43.20M
• Dividend Yield: N/A
• Average Volume (3M): 41.67K
• Price to Earnings (P/E): 2.8
• Beta (1Y): 0.39
• Revenue Growth: 40.98%
• EPS Growth: -222.22%
• Country: HK
• Employees: 76
• Sector: Industrials
• Sector Strength: 70
• Industry: Engineering & Construction
• EPS (TTM): -0.03
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 5,000
• 30 Day Avg. Volume: 41,666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: HK$0.00 ▼(-100.00% Downside)

The overall score for Chi Ho Development Holdings Ltd is primarily driven by its improved cash flow position and stable balance sheet, despite facing significant profitability challenges. Positive short-term technical indicators suggest some investor interest, but a negative P/E ratio and lack of dividend yield indicate valuation concerns.

Positive Factors

Cash Flow Improvement

The company's strong growth in operating cash flow indicates robust cash generation ability, enhancing liquidity and operational efficiency. This improvement suggests better cash management practices, which can support long-term investments and debt servicing.

Stable Balance Sheet

A moderate debt-to-equity ratio indicates a balanced capital structure, providing financial stability. This suggests the company can maintain operations without excessive reliance on debt, which is crucial for long-term sustainability.

Revenue Growth

The significant revenue growth demonstrates the company's ability to expand its market presence and secure more contracts, which is essential for sustaining long-term business growth and competitiveness in the construction sector.

Negative Factors

Profitability Challenges

Negative earnings and declining margins highlight ongoing profitability challenges. This can limit the company's ability to reinvest in growth opportunities and may affect its competitive position over time.

Declining Margins

Decreasing gross profit margins suggest cost pressures or pricing challenges, which can erode profitability. Sustained margin pressure may hinder the company's ability to invest in growth and innovation.

Negative Return on Equity

A negative return on equity indicates that the company is not generating sufficient profits from its equity base, which can deter investors and limit access to capital for future growth initiatives.

Chi Ho Development Holdings Ltd Business Overview & Revenue Model

Company Description

Chi Ho Development Holdings Ltd (8423) is a company primarily engaged in the construction and development sectors. The company offers a wide range of services, including building construction, repair, and maintenance services. It focuses on providing these services to both public and private sector clients, ensuring quality and compliance with industry standards.

How the Company Makes Money

Chi Ho Development Holdings Ltd generates revenue through its construction and development services. The company earns income by securing contracts for building construction, repair, and maintenance projects. These contracts may involve residential, commercial, and public infrastructure developments. Revenue is primarily driven by the successful bidding and completion of these projects, ensuring adherence to timelines and budget constraints. Additionally, the company may engage in partnerships or collaborations to enhance its service offerings and expand its client base, contributing to its overall financial performance.

Chi Ho Development Holdings Ltd Financial Statement Overview

Summary

Chi Ho Development Holdings Ltd faces profitability challenges with negative earnings and declining margins. Despite this, significant improvements in cash flow indicate strong liquidity and operational efficiency. The stable balance sheet is offset by a negative return on equity.

Income Statement

Chi Ho Development Holdings Ltd has shown inconsistent revenue growth with a decline in the latest period compared to the previous year. The company is currently operating at a net loss, with a negative EBIT margin and declining EBITDA, highlighting profitability challenges. Gross profit margin has also decreased, indicating potential cost pressures or pricing issues.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, which suggests a balanced capital structure. However, the return on equity has turned negative due to net losses. The equity ratio remains relatively healthy, suggesting that the company maintains a reasonable level of equity financing.

Cash Flow

Chi Ho Development Holdings Ltd has demonstrated strong growth in operating cash flow, turning positive compared to a significant outflow in previous years. The free cash flow has also improved, indicating better cash management. The operating cash flow to net income ratio is favorable, suggesting that cash generation is robust despite reported losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	447.39M	497.51M	352.90M	337.68M	257.21M	281.67M
Gross Profit	45.32M	31.57M	40.54M	42.72M	34.29M	39.43M
EBITDA	19.65M	-4.31M	18.58M	22.07M	13.70M	27.95M
Net Income	13.01M	-12.29M	10.09M	13.15M	8.02M	21.44M
Balance Sheet
Total Assets	422.81M	379.35M	397.26M	344.08M	296.69M	260.87M
Cash, Cash Equivalents and Short-Term Investments	13.71M	25.66M	22.54M	43.96M	51.28M	33.32M
Total Debt	107.48M	103.92M	99.11M	93.29M	93.65M	40.85M
Total Liabilities	256.68M	234.42M	240.14M	196.76M	160.81M	133.36M
Stockholders Equity	166.13M	144.93M	157.12M	147.31M	135.88M	127.50M
Cash Flow
Free Cash Flow	24.06M	37.84M	8.09M	5.43M	-25.26M	8.12M
Operating Cash Flow	24.24M	37.99M	8.63M	5.57M	-18.50M	8.16M
Investing Cash Flow	-37.98M	-34.27M	-30.72M	-6.53M	-6.62M	78.00K
Financing Cash Flow	9.61M	-597.00K	666.00K	-6.36M	43.07M	-16.71M

Chi Ho Development Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.05
• 50DMA: Negative
• 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:8423, the sentiment is Neutral. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 40.45 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8423.

Chi Ho Development Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.84B	15.52	7.44%	2.00%	2.86%	-14.57%
3728	57 Neutral	HK$51.66M	5.48	7.15%	―	42.91%	-12.26%
8423	56 Neutral	HK$43.20M	2.76	-8.14%	―	40.98%	-222.22%
3321	―	HK$34.52M	―		―	―	―
8619	60 Neutral	HK$44.09M	6.46	41.20%	―	3.26%	1648.15%
8616	49 Neutral	HK$44.00M	―	-7.37%	―	-2.10%	-1562.50%
8445	40 Neutral	HK$44.22M	―	-11.50%	―	1.52%	21.51%