Hing Ming Holdings Ltd (8425) AI Stock Analysis

• Market Cap: HK$33.09M
• Dividend Yield: N/A
• Average Volume (3M): 232.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.26
• Revenue Growth: 23.95%
• EPS Growth: -12.01%
• Country: HK
• Employees: 36
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): <0.01
• Shares Outstanding: 376,000,000
• 10 Day Avg. Volume: 42,000
• 30 Day Avg. Volume: 232,533
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -0.64
• 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: 49 Neutral
• Price Target: HK$0.09 ▼(-4.44% Downside)

The overall stock score of 49 reflects significant financial challenges, including declining profitability and high leverage. Technical analysis suggests mixed signals with short-term bearish momentum but some longer-term bullish trends. Valuation is weak due to a negative P/E ratio and lack of dividend yield, further impacting the stock's attractiveness.

Positive Factors

Revenue Growth

A strong revenue growth rate of nearly 24% indicates the company's ability to expand its market presence and capture new business opportunities, which is a positive indicator of its business model strength and market position.

Strategic Sourcing

Strategic sourcing helps maintain competitive pricing, enhancing market competitiveness and potentially leading to increased market share and customer retention over the long term.

Industry Diversification

Diversification across multiple industries reduces dependency on a single sector, providing resilience against sector-specific downturns and offering multiple growth avenues.

Negative Factors

Declining Profitability

Declining profitability with negative margins suggests operational inefficiencies or increased costs, which could hinder long-term financial health and ability to reinvest in growth.

High Leverage

A high debt-to-equity ratio indicates financial leverage risk, potentially limiting financial flexibility and increasing vulnerability to economic downturns.

Negative Free Cash Flow

Negative free cash flow growth highlights challenges in generating sufficient cash after capital expenditures, which could constrain the company's ability to fund operations and growth initiatives.

Hing Ming Holdings Ltd Business Overview & Revenue Model

Company Description

Hing Ming Holdings Limited provides rental services for temporary suspended working platforms and other equipment. It rents tower cranes and generators; and trades in equipment and spare parts, including permanent suspended working platforms, motors, and wire ropes. The company also offers project management and construction consulting services. It provides services to construction companies, owners of commercial properties, and trading companies in Hong Kong, Thailand, Macau, Singapore, and internationally. The company was founded in 1997 and is headquartered in Kowloon City, Hong Kong. Hing Ming Holdings Limited operates as a subsidiary of Hing Gut Limited.

How the Company Makes Money

Hing Ming Holdings generates revenue primarily through the sale of electrical and electronic components to various industries. Its revenue model is based on direct sales to clients, which include manufacturers and distributors across multiple sectors. Key revenue streams include wholesale distribution of components, value-added services such as logistics and supply chain solutions, and potential partnerships with manufacturers for exclusive distribution agreements. The company may also engage in long-term contracts with clients to ensure steady revenue flow. Additionally, the strategic sourcing of high-demand products allows Hing Ming Holdings to maintain competitive pricing, contributing to its profitability.

Hing Ming Holdings Ltd Financial Statement Overview

Summary

Hing Ming Holdings Ltd faces financial pressures with declining profitability and increased leverage. The income statement shows declining profitability with negative net profit and EBIT margins. The balance sheet reveals a high debt-to-equity ratio, indicating financial leverage risk. Cash flow analysis shows negative free cash flow growth, highlighting challenges in generating sufficient cash after capital expenditures.

Income Statement

The income statement shows declining profitability with a negative net profit margin and EBIT margin in the latest year, indicating operational challenges. Revenue slightly decreased from the previous year, and there is a significant drop in EBIT and EBITDA margins, reflecting increased operational costs or reduced efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which has increased significantly, indicating potential financial leverage risk. However, the company maintains a relatively stable equity ratio, suggesting that a reasonable portion of its assets is financed by equity. Stockholder's equity decreased, impacting the return on equity negatively.

Cash Flow

The cash flow analysis reveals a negative free cash flow growth rate, indicating challenges in generating sufficient cash after capital expenditures. Despite having a positive operating cash flow, the company struggles with high capital expenditure requirements, which significantly impacts free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	138.71M	106.06M	107.81M	98.23M	75.44M	52.37M
Gross Profit	31.46M	22.92M	23.92M	25.58M	18.85M	19.52M
EBITDA	1.63M	153.00K	22.43M	25.82M	15.34M	24.95M
Net Income	-32.95M	-24.70M	-568.00K	2.37M	-3.04M	4.58M
Balance Sheet
Total Assets	183.69M	183.69M	181.13M	178.66M	178.90M	142.46M
Cash, Cash Equivalents and Short-Term Investments	12.37M	12.37M	13.29M	14.21M	30.42M	13.80M
Total Debt	52.57M	52.57M	17.28M	19.50M	30.54M	3.28M
Total Liabilities	91.49M	91.49M	64.24M	61.20M	57.54M	18.07M
Stockholders Equity	92.19M	92.19M	116.89M	117.46M	121.35M	124.39M
Cash Flow
Free Cash Flow	-30.75M	-30.75M	12.08M	-6.68M	4.43M	-2.18M
Operating Cash Flow	24.79M	24.79M	31.65M	30.65M	15.38M	16.19M
Investing Cash Flow	-44.40M	-44.40M	-18.88M	-36.97M	-10.68M	-17.32M
Financing Cash Flow	18.69M	18.69M	-13.69M	-9.90M	11.92M	-7.56M

Hing Ming Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.09
• 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:8425, the sentiment is Positive. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.09, and above the 200-day MA of 0.07, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.51 is Neutral, neither overbought nor oversold. The STOCH value of 64.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8425.

Hing Ming Holdings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1581	76 Outperform	HK$90.88M	3.64	8.86%	―	-12.78%	-20.50%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1496	62 Neutral	HK$134.78M	10.68	5.46%	6.20%	-13.83%	14.96%
8425	49 Neutral	HK$33.09M	-2.36	-13.79%	―	23.95%	-12.01%
8612	44 Neutral	HK$11.40M	-0.37	-202.44%	―	1.88%	34.21%