Hing Ming Holdings Ltd (8425) AI Stock Analysis

• Market Cap: HK$21.06M
• Dividend Yield: N/A
• Average Volume (3M): 20.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.01
• Revenue Growth: -7.51%
• EPS Growth: -5650.00%
• Country: HK
• Employees: 36
• Sector: Industrials
• Sector Strength: 84
• Industry: Rental & Leasing Services
• EPS (TTM): -0.04
• Shares Outstanding: 376,000,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 20,533
• PEG Ratio: -0.21
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -13.65
• 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: 66 Neutral
• Price Target: ―

Hing Ming Holdings Ltd's overall stock score reflects a company with positive revenue growth and strong cash flow management, offset by declining profitability and operational efficiency. Technically, the stock shows upward trends, but the lack of profitability and absence of a dividend yield weigh heavily on its valuation.

Hing Ming Holdings Ltd Business Overview & Revenue Model

Company Description

Hing Ming Holdings Ltd (8425) is a company based in Hong Kong that specializes in the provision of rental services for temporary suspended working platforms and other equipment. The company primarily serves the construction industry, offering essential equipment for construction, renovation, and maintenance projects. Hing Ming Holdings Ltd also provides equipment installation, maintenance, and dismantling services, ensuring comprehensive support to its clientele.

How the Company Makes Money

Hing Ming Holdings Ltd generates revenue primarily through the rental of temporary suspended working platforms and related equipment to construction companies. The company charges its clients rental fees based on the duration of equipment use, which forms the bulk of its revenue stream. Additionally, Hing Ming offers supplementary services such as installation, maintenance, and dismantling of equipment, which contribute to its earnings. The company's financial performance is influenced by the level of construction activity in Hong Kong, partnerships with construction firms, and its ability to maintain a robust and reliable equipment fleet.

Hing Ming Holdings Ltd Financial Statement Overview

Summary

Hing Ming Holdings Ltd shows a mixed financial position. The revenue growth is promising, but declining profitability and operational efficiency are concerning. The balance sheet indicates solid equity and manageable debt, though profitability metrics like ROE have weakened. Strong cash flow performance is a positive highlight, showcasing effective cash management despite the net income loss. Strategic focus on improving margins and profitability is essential moving forward.

Income Statement

The company's revenue grew by 9.74% in 2024, indicating positive sales growth. However, the net profit margin turned negative, moving from a positive 2.41% in 2023 to -0.53% in 2024, which suggests a decline in profitability. The gross profit margin declined slightly from 26.03% to 22.18%. The EBIT margin also decreased significantly, from 6.07% to 1.75%, reflecting lower operational efficiency. Despite this, the EBITDA margin remains strong at 20.81%.

Balance Sheet

The debt-to-equity ratio improved slightly to 0.15, indicating manageable leverage. The return on equity, however, fell from 2.02% to -0.49%, highlighting reduced profitability. The equity ratio remains high at 64.55%, which points to a solid equity base. The overall financial stability is reasonable despite the decreased profitability.

Cash Flow

The company demonstrated a strong recovery in free cash flow, moving from negative to positive, with a growth rate of 281.02%. The operating cash flow to net income ratio is robust at -55.74, indicating strong cash flow generation relative to net income. The free cash flow to net income ratio improved significantly, demonstrating better cash management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
122.28M	107.81M	98.23M	75.44M	52.37M	55.22M
	Gross Profit
15.46M	23.92M	25.58M	18.85M	19.52M	19.84M
	EBIT
-13.29M	1.89M	5.96M	-769.00K	8.91M	7.42M
	EBITDA
13.84M	22.43M	25.82M	15.34M	24.95M	19.59M
	Net Income Common Stockholders
-14.66M	-568.00K	2.37M	-3.04M	4.58M	1.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.24M	13.29M	14.21M	30.42M	13.80M	22.49M
	Total Assets
186.50M	181.13M	178.66M	178.90M	142.46M	150.53M
	Total Debt
33.99M	17.28M	19.50M	30.54M	3.28M	10.44M
	Net Debt
20.75M	4.00M	5.29M	117.00K	-10.51M	-12.05M
	Total Liabilities
77.81M	64.24M	61.20M	57.54M	18.07M	30.72M
	Stockholders Equity
108.69M	116.89M	117.46M	121.35M	124.39M	119.81M
Cash Flow		Free Cash Flow
33.58M	12.08M	-6.68M	4.43M	-2.18M	-7.74M
	Operating Cash Flow
43.36M	31.65M	30.65M	15.38M	16.19M	24.84M
	Investing Cash Flow
-54.87M	-18.88M	-36.97M	-10.68M	-17.32M	-32.36M
	Financing Cash Flow
9.55M	-13.69M	-9.90M	11.92M	-7.56M	-7.57M

Hing Ming Holdings Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.06
• 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:8425, the sentiment is Positive. The current price of 0.06 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.06, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 47.81 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
1460	78 Outperform	HK$197.46M	8.06	4.42%	4.44%	7.39%	142.61%
3868	74 Outperform	€8.88B	10.24		5.35%	-3.06%	-24.51%
8425	66 Neutral	HK$21.06M	―	-10.88%	―	-7.51%	-5650.00%
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
1528	46 Neutral	HK$11.92B	―	-6.64%	2.39%	-35.35%	-14.20%
8395	36 Underperform	HK$332.64M	―	-16.42%	―	-13.93%	75.32%
1738	31 Underperform	$136.70M	―		―	-69.69%	-9.41%