SEM Holdings Limited (9929) AI Stock Analysis

• Market Cap: HK$1.46B
• Dividend Yield: N/A
• Average Volume (3M): 3.43M
• Price to Earnings (P/E): 122.8
• Beta (1Y): 0.39
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 50
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.00
• Shares Outstanding: 2,000,000,000
• 10 Day Avg. Volume: 6,709,000
• 30 Day Avg. Volume: 3,426,000
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 59 Neutral
• Price Target: HK$0.96 ▲(60.17% Upside)

The score is driven primarily by improving profitability and a robust, low-debt balance sheet, but it is held back by a steep revenue decline and negative operating/free cash flow. Technically the trend is strong but overbought, and valuation is a major headwind due to the very high P/E.

Positive Factors

Low leverage / strong equity base

An equity ratio of 82.66% and negligible debt-to-equity (0.03) provide durable financial resilience, enabling the company to fund development cycles, withstand property market volatility, and access capital without heavy interest burdens, supporting long-term strategic flexibility.

Margin and profit recovery

Material improvement to positive net income and a 25.65% gross margin shows structural cost control and operational recovery. Sustained margins bolster internal cash generation potential, improve reinvestment capacity, and reduce reliance on external financing over the medium term.

Diversified real estate income streams

A mix of leasing (recurring rents), development (value realization), and asset-management fees creates diversified and complementary cash flows. This reduces single-segment dependency, smoothing revenue cycles and enhancing long-term stability versus pure-play developers.

Negative Factors

Steep revenue decline

A 64.56% revenue drop erodes scale and can persistently weaken bargaining power with tenants and contractors. Lower top-line base constrains margins, reduces room for fixed-cost absorption, and slows the company’s ability to rebuild recurring cash flows and finance growth organically.

Negative operating and free cash flow

Negative operating and free cash flow indicate the business is not converting profits to cash, forcing reliance on financing or asset disposals. This undermines the capacity to fund development projects, maintain properties, and sustain distributions without changing operating or working capital dynamics.

Low return on equity

An ROE of 1.79% remains low, implying limited efficiency in generating profits from shareholder capital. Persistently low ROE can signal poor capital allocation or low-yield asset mix, constraining long-term shareholder value creation unless operating returns materially improve.

SEM Holdings Limited Business Overview & Revenue Model

Company Description

SEM Holdings Limited, an investment holding company, provides electrical and mechanical (E&M) engineering services in Macau and Hong Kong. The company supplies, installs, and maintains electrical systems for new and existing buildings in the projects of commercial and residential development, hotel development, casino development, public properties, and hotel renovation. It serves contractors or the E&M engineering works subcontractors in the related development and renovation projects. The company was founded in 2006 and is based in Chai Wan, Hong Kong. SEM Holdings Limited is a subsidiary of SEM Enterprises Limited.

How the Company Makes Money

SEM Holdings Limited generates revenue through several key streams. The primary source of income comes from leasing commercial properties, where the company earns rental income from tenants occupying its properties. Additionally, the company engages in property development, generating revenue from the sale of developed properties and land parcels. Asset management services also contribute to its earnings by charging fees for managing investment portfolios and real estate assets. Strategic partnerships with other real estate firms and financial institutions further enhance its revenue potential by enabling access to larger projects and investment opportunities.

SEM Holdings Limited Financial Statement Overview

Summary

SEM Holdings Limited shows a mixed financial performance. Profitability and operational efficiency have improved, but revenue decline and negative cash flows are concerning. The balance sheet remains strong with low leverage, providing stability.

Income Statement

SEM Holdings Limited has shown a significant improvement in profitability with a positive net income in 2024 compared to a loss in 2023. The gross profit margin improved to 25.65% from 7.54%, indicating better cost management. However, the revenue has decreased substantially by 64.56%, which is a concern for future growth. The EBIT and EBITDA margins have turned positive, showing operational improvements.

Balance Sheet

The company maintains a strong equity position with an equity ratio of 82.66%, indicating financial stability. The debt-to-equity ratio is low at 0.03, suggesting minimal leverage risk. The return on equity improved to 1.79% from a negative position, reflecting better profitability. Overall, the balance sheet is robust with a strong equity base and low debt levels.

Cash Flow

The cash flow situation has deteriorated with a negative operating cash flow in 2024, compared to a positive cash flow in 2023. The free cash flow has also turned negative, indicating potential liquidity challenges. The company needs to improve its cash generation from operations to support its financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.36M	91.71M	258.89M	281.33M	172.99M	66.83M
Gross Profit	25.30M	23.52M	19.51M	23.15M	20.39M	10.07M
EBITDA	13.07M	6.65M	-5.09M	-2.24M	-1.98M	-16.43M
Net Income	11.46M	3.80M	-7.97M	-6.73M	-4.72M	-19.23M
Balance Sheet
Total Assets	244.92M	257.60M	259.91M	268.46M	265.06M	258.89M
Cash, Cash Equivalents and Short-Term Investments	112.58M	72.13M	56.05M	40.80M	66.38M	106.43M
Total Debt	5.66M	6.09M	6.91M	7.75M	8.63M	819.61K
Total Liabilities	31.75M	44.66M	50.77M	51.34M	41.22M	34.48M
Stockholders Equity	213.16M	212.94M	209.14M	217.11M	223.84M	224.41M
Cash Flow
Free Cash Flow	-10.13M	-1.63M	14.79M	-5.67M	-64.74M	-50.09M
Operating Cash Flow	-10.09M	-1.44M	15.10M	-5.18M	-41.42M	-48.79M
Investing Cash Flow	12.02M	23.45M	3.04M	-12.06M	-26.72M	15.22M
Financing Cash Flow	0.00	-1.76M	-2.00M	-2.06M	6.30M	101.93M

SEM Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9929, the sentiment is Positive. The current price of 0.6 is below the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.35, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 58.89 is Neutral, neither overbought nor oversold. The STOCH value of 48.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9929.

SEM Holdings 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%
9929	59 Neutral	HK$1.46B	122.81	5.52%	―	―	―
1793	54 Neutral	HK$176.00M	20.18	3.17%	5.63%	-9.62%	-2.68%
1741	48 Neutral	HK$120.00M	-11.60	-47.66%	―	-34.70%	-388.24%
1920	44 Neutral	HK$155.38M	-7.38	-68.45%	―	62.98%	67.20%

SEM Holdings Limited Corporate Events

SEM Holdings Issues Composite Document for Mandatory Unconditional Cash Offer

SEM Holdings Limited has announced the formal despatch of a composite document relating to a mandatory unconditional cash offer by Yao Capital Limited, made through Lego Securities Limited, to acquire all issued shares of SEM Holdings not already owned or agreed to be acquired by the offeror and its concert parties. The composite document, sent to independent shareholders on 29 December 2025, sets out the terms and timetable of the offer, together with a recommendation from the company’s Independent Board Committee and advice from an Independent Financial Adviser, with the offer open from 29 December 2025 until 4:00 p.m. on 19 January 2026, marking a key step in the potential change of control and providing minority investors with guidance on how to respond.

The most recent analyst rating on (HK:9929) stock is a Hold with a HK$0.61 price target. To see the full list of analyst forecasts on SEM Holdings Limited stock, see the HK:9929 Stock Forecast page.

SEM Holdings Delays Despatch of Composite Offer Document for Mandatory Cash Bid

Yao Capital Limited and SEM Holdings Limited have announced a delay in sending to shareholders a combined offer document and board circular relating to a mandatory unconditional cash offer for all SEM shares not already owned or agreed to be acquired by Yao Capital and its concert parties. The composite document, which will set out full offer terms, an independent board committee recommendation and financial adviser’s opinion, is now expected to be despatched on or before 30 December 2025 following regulatory agreement to extend the original 24 December deadline, slightly pushing back the timetable for shareholders’ formal consideration of the bid.

The most recent analyst rating on (HK:9929) stock is a Hold with a HK$0.61 price target. To see the full list of analyst forecasts on SEM Holdings Limited stock, see the HK:9929 Stock Forecast page.

SEM Holdings Appoints Independent Financial Adviser Amid Takeover Offer

SEM Holdings Limited has announced the appointment of Red Sun Capital Limited as the Independent Financial Adviser to guide its Independent Board Committee regarding an offer. This decision is part of the company’s compliance with the Takeovers Code, and the advice from Red Sun Capital will be included in a forthcoming Composite Document. The company cautions shareholders and potential investors that there is no assurance the offer will proceed and advises them to remain cautious in dealing with its securities.

The most recent analyst rating on (HK:9929) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on SEM Holdings Limited stock, see the HK:9929 Stock Forecast page.

SEM Holdings Completes Major Share Acquisition by Yao Capital

SEM Holdings Limited, incorporated in the Cayman Islands, has announced the completion of a significant transaction involving the sale and purchase of 75% of its issued shares to Yao Capital Limited. This transaction, valued at HK$165.0 million, has led to a mandatory unconditional cash offer by Yao Capital Limited to acquire the remaining shares of SEM Holdings Limited. The completion of this acquisition and the subsequent offer are expected to impact the company’s market positioning and shareholder structure.

The most recent analyst rating on (HK:9929) stock is a Hold with a HK$0.11 price target. To see the full list of analyst forecasts on SEM Holdings Limited stock, see the HK:9929 Stock Forecast page.

SEM Holdings Announces Trading Halt Pending Major Announcement

SEM Holdings Limited, a company incorporated in the Cayman Islands, has announced a trading halt of its shares on the Hong Kong Stock Exchange. This suspension, effective from 9:00 a.m. on November 26, 2025, is pending the release of an announcement related to inside information under the Hong Kong Code on Takeovers and Mergers. The halt indicates a significant event that could impact the company’s operations and stakeholders.