Chi Ho Development Holdings Ltd (8423) AI Stock Analysis

• Market Cap: HK$33.60M
• Dividend Yield: N/A
• Average Volume (3M): 188.00K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 0.19
• Revenue Growth: 44.26%
• EPS Growth: 16.43%
• Country: HK
• Employees: 76
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.01
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 101,000
• 30 Day Avg. Volume: 188,000
• PEG Ratio: 0.04
• Price to Book (P/B): 0.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.07
• 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

• Rating: 72 Outperform
• Price Target: ―

Chi Ho Development Holdings Ltd exhibits a solid financial foundation with strong cash flow performance and undervaluation based on its P/E ratio. While technical indicators suggest caution due to potential overbought conditions, the company's financial stability and growth prospects provide a positive outlook. Focus on improving profitability metrics could further enhance its stock performance.

Chi Ho Development Holdings Ltd Business Overview & Revenue Model

Company Description

Chi Ho Development Holdings Ltd (8423) is a Hong Kong-based investment holding company primarily engaged in foundation works and ancillary services. The company operates through its subsidiaries to provide construction and engineering services, focusing on foundation and site formation works, which include piling, excavation, and lateral support, as well as pile cap construction. With a strong presence in Hong Kong's construction industry, Chi Ho Development Holdings Ltd serves both private and public sector clients, delivering projects that range from residential developments to large-scale infrastructure undertakings.

How the Company Makes Money

Chi Ho Development Holdings Ltd generates revenue primarily through its construction and engineering services within the foundation works sector. The company's key revenue streams include income from contracts for piling, excavation, lateral support, and pile cap construction. These contracts are often secured through competitive bidding processes for both private developments and government infrastructure projects. By leveraging its technical expertise and industry experience, Chi Ho Development Holdings Ltd maintains a robust project pipeline, which contributes significantly to its earnings. Additionally, the company may engage in partnerships or joint ventures to expand its market reach and enhance its service offerings, although specific partnerships were not detailed.

Chi Ho Development Holdings Ltd Financial Statement Overview

Summary

Chi Ho Development Holdings Ltd presents a balanced financial outlook with steady revenue growth and robust cash flow performance. While profitability metrics reflect industry competitiveness, the company's stable balance sheet and effective cash flow management position it well for future growth. Attention to improving profit margins and return on equity could enhance overall financial health.

Income Statement

Chi Ho Development Holdings Ltd demonstrates a moderate financial performance. The gross profit margin and net profit margin have slightly declined over the year, indicating pressure on profitability. However, the company achieved a revenue growth rate of 4.5% in the latest year, which is a positive sign. The EBIT and EBITDA margins are relatively stable, reflecting efficient operations despite competitive industry conditions.

Balance Sheet

The balance sheet shows a stable financial structure with a debt-to-equity ratio of 0.63, indicating a manageable level of leverage. The return on equity is modest at approximately 6.4%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 39.6%, denoting a reasonable proportion of equity financing. Overall, the balance sheet reflects stability with some potential risks from moderate leverage.

Cash Flow

The cash flow statement reveals a solid performance with a strong increase in free cash flow by 48.8% from the previous year, highlighting effective operational management. The operating cash flow to net income ratio of 0.86 indicates strong cash generation relative to earnings. The free cash flow to net income ratio of 0.80 further underscores cash flow strength, providing a cushion for future investments or debt repayment.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
447.39M	352.90M	337.68M	257.21M	281.67M	404.02M
	Gross Profit
45.32M	40.54M	42.72M	34.29M	39.43M	45.80M
	EBIT
18.19M	14.58M	18.22M	12.54M	26.69M	27.24M
	EBITDA
19.65M	18.58M	22.07M	13.70M	27.95M	27.03M
	Net Income Common Stockholders
13.01M	10.09M	13.15M	8.02M	21.44M	19.51M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.71M	22.54M	43.96M	51.28M	33.32M	41.79M
	Total Assets
422.81M	397.26M	344.08M	296.69M	260.87M	243.39M
	Total Debt
107.48M	99.11M	93.29M	93.65M	40.85M	53.66M
	Net Debt
93.77M	76.57M	49.33M	42.37M	7.53M	11.87M
	Total Liabilities
256.68M	240.14M	196.76M	160.81M	133.36M	135.33M
	Stockholders Equity
166.13M	157.12M	147.31M	135.88M	127.50M	108.06M
Cash Flow		Free Cash Flow
24.06M	8.09M	5.43M	-25.26M	8.12M	6.80M
	Operating Cash Flow
24.24M	8.63M	5.57M	-18.50M	8.16M	6.99M
	Investing Cash Flow
-37.98M	-30.72M	-6.53M	-6.62M	78.00K	3.46M
	Financing Cash Flow
9.61M	666.00K	-6.36M	43.07M	-16.71M	1.93M

Chi Ho Development Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8423, the sentiment is Negative. The current price of 0.04 is below the 20-day moving average (MA) of 0.04, below the 50-day MA of 0.04, and below the 200-day MA of 0.05, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of -11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
8423	72 Outperform	HK$33.60M	2.58	8.14%	―	44.26%	16.43%
6869	70 Outperform	$23.37B	16.29	6.68%	3.16%	0.24%	-31.74%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
1663	61 Neutral	HK$209.44M	3.36	3.30%	―	105.34%	75.69%
1458	55 Neutral	HK$5.24B	50.31	2.60%	2.05%	-12.46%	-13.70%
1611	52 Neutral	HK$1.15B	14.24	-19.51%	―	344.37%	-288.45%
8406	46 Neutral	HK$135.43M	―	-15.56%	―	35.26%	26.07%