Kwan Yong Holdings Limited (9998) AI Stock Analysis

• Market Cap: HK$384.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 5.1
• Beta (1Y): 0.57
• Revenue Growth: 81.81%
• EPS Growth: 724.56%
• Country: HK
• Employees: 504
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.08
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 1,634,500
• 30 Day Avg. Volume: 1,755,000
• PEG Ratio: <0.01
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.10
• P/FCF Ratio: 0.44
• 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: 82 Outperform
• Price Target: HK$0.52 ▲(41.08% Upside)

The score is driven primarily by strong financial performance (notably revenue growth, improving profitability, and robust free cash flow) and very compelling valuation (low P/E and solid dividend yield). Technicals are supportive with price above key moving averages and positive MACD, though historical margin volatility remains a key risk.

Positive Factors

Robust revenue growth

Sustained revenue growth of ~37% indicates durable demand and successful project execution in the engineering and construction business. A larger revenue base supports scale advantages, steadier backlog conversion and long-term reinvestment capacity, improving strategic flexibility over months.

Strong free cash flow generation

A near 79% increase in free cash flow demonstrates efficient cash conversion and internal funding ability. Strong FCF supports capex, working capital needs, debt reduction and dividends without reliance on external finance, enhancing the firm’s resilience and investment capacity over the medium term.

Conservative balance sheet and low leverage

A low debt-to-equity profile and improved ROE reflect prudent financial management. Reduced leverage lowers refinancing and interest risks, enabling the company to bid on larger projects or withstand industry cycles while preserving capital allocation optionality for strategic investments or shareholder returns.

Negative Factors

Historical margin volatility

Past fluctuations in gross and net margins point to project mix, cost pass-through and procurement exposure typical in construction. Such volatility undermines earnings predictability, complicates long-term planning, budgeting and may pressure cash flow and returns if adverse cost swings recur.

Moderate reliance on equity financing

A structural dependence on equity financing can limit financial leverage and dilute returns when raising capital. Over the medium term this may constrain ability to fund large, capital-intensive contracts or acquisitions without dilution or higher-cost alternatives, reducing growth optionality.

Recent recovery from negative net margin

Turning from negative to positive net margins shows improvement but also recent earnings instability. Recovery may reflect timing of project completions; permanence is uncertain. Reversion risk could impact free cash flow and reinvestment capacity if cyclical headwinds or project delays occur.

Kwan Yong Holdings Limited Business Overview & Revenue Model

Company Description

Kwan Yong Holdings Limited, an investment holding company, provides general building and construction services in Singapore. It undertakes building construction works of institutional buildings, such as education institutions, hospitals, and nursing homes; and commercial buildings comprising office buildings and restaurants, as well as industrial and residential buildings. The company was incorporated in 2018 and is headquartered in Singapore. Kwan Yong Holdings Limited operates as a subsidiary of Ideal Smart Ventures Limited.

How the Company Makes Money

Kwan Yong Holdings Limited generates revenue primarily through the sale of construction materials, including cement, concrete, and other related products. The company benefits from a strong market presence and established relationships with contractors and construction firms, which are key revenue drivers. Additionally, Kwan Yong engages in real estate development projects that contribute to its income through property sales and leasing activities. The company may also explore strategic partnerships with other firms in the construction and real estate sectors, enhancing its market reach and operational efficiencies. Seasonal demand fluctuations and economic conditions may impact earnings, but diversification across sectors helps stabilize revenue streams.

Kwan Yong Holdings Limited Financial Statement Overview

Summary

Solid overall fundamentals: strong revenue growth (+37.04%), improved gross margin, and net margin turning positive. Cash flow strength stands out with sharply higher free cash flow (+78.72%) and healthy cash conversion, while the balance sheet remains conservatively levered; historical margin volatility is the main risk.

Income Statement

Kwan Yong Holdings Limited has demonstrated strong revenue growth with a 37.04% increase in the latest period, indicating robust demand and successful project execution. The gross profit margin improved significantly, reflecting better cost management. The net profit margin also showed substantial improvement, moving from negative to positive territory, which is a positive sign of profitability. However, historical volatility in margins suggests potential risks in maintaining consistent profitability.

Balance Sheet

The company's balance sheet is relatively strong with a low debt-to-equity ratio, indicating prudent financial management and low leverage risk. The return on equity has improved, showcasing better utilization of shareholder funds. However, the equity ratio suggests a moderate reliance on equity financing, which could limit financial flexibility.

Cash Flow

Kwan Yong Holdings Limited has shown impressive growth in free cash flow, with a 78.72% increase, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of income into cash. The free cash flow to net income ratio further supports the company's strong cash position, enhancing its ability to reinvest and manage debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	239.92M	239.92M	133.83M	111.44M	77.77M	90.53M
Gross Profit	24.63M	24.63M	7.74M	8.61M	3.76M	-5.18M
EBITDA	15.33M	15.33M	382.00K	3.58M	-283.00K	-3.93M
Net Income	12.77M	12.77M	1.57M	2.33M	-391.00K	-6.21M
Balance Sheet
Total Assets	175.10M	175.10M	98.92M	85.29M	71.84M	86.15M
Cash, Cash Equivalents and Short-Term Investments	94.35M	94.35M	42.03M	23.37M	14.09M	32.54M
Total Debt	2.85M	2.85M	4.45M	3.36M	4.85M	7.12M
Total Liabilities	123.13M	123.13M	59.90M	47.87M	36.83M	50.73M
Stockholders Equity	51.97M	51.97M	39.01M	37.42M	35.02M	35.43M
Cash Flow
Free Cash Flow	55.97M	55.97M	17.64M	8.83M	-15.26M	-13.48M
Operating Cash Flow	57.23M	57.23M	19.62M	9.41M	-14.68M	-10.35M
Investing Cash Flow	1.37M	1.37M	176.00K	1.25M	-1.53M	-2.74M
Financing Cash Flow	-6.08M	-6.08M	-1.52M	-1.62M	-2.29M	-1.97M

Kwan Yong Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9998, the sentiment is Positive. The current price of 0.37 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.39, and above the 200-day MA of 0.28, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 70.48 is Negative, neither overbought nor oversold. The STOCH value of 94.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9998.

Kwan Yong Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9998	82 Outperform	HK$384.00M	5.12	27.58%	―	81.81%	724.56%
2663	64 Neutral	HK$155.94M	6.86	8.56%	23.73%	-32.31%	-51.89%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2017	60 Neutral	HK$157.72M	5.38	2.70%	―	-27.58%	-18.28%
1459	49 Neutral	HK$132.81M	-11.22	-0.68%	7.69%	-33.92%	-94.74%
1559	45 Neutral	HK$168.22M	-2.07	-46.27%	―	-63.83%	36.12%

Kwan Yong Holdings Limited Corporate Events

Kwan Yong Wins SGD96 Million Contract for Singapore Nursing Home Project

Kwan Yong Holdings Limited has secured a construction contract worth approximately SGD96 million from Singapore’s Ministry of Health to develop a new nursing home at Alexandra Health Campus, with work scheduled to begin in March 2026. The award, obtained in the ordinary course of business, underscores the Group’s continued role in public-sector healthcare infrastructure, though the company does not expect the project to have a material impact on its net tangible assets or earnings per share for the financial year ending 30 June 2026, and the final revenue may differ from the stated contract sum due to contingent and provisional amounts.

The most recent analyst rating on (HK:9998) stock is a Hold with a HK$0.40 price target. To see the full list of analyst forecasts on Kwan Yong Holdings Limited stock, see the HK:9998 Stock Forecast page.

Kwan Yong Holdings Reshapes Board and Committee Roles

Kwan Yong Holdings Limited has announced an updated composition of its board of directors, comprising four executive directors, one non-executive director and three independent non-executive directors, effective 7 January 2026. The company has also confirmed the membership and chairmanship of its key governance bodies – the Audit, Remuneration and Nomination Committees – signalling a formalised governance structure and delineation of oversight responsibilities across its directors, which may strengthen board independence, risk management and remuneration oversight for shareholders and other stakeholders.

The most recent analyst rating on (HK:9998) stock is a Hold with a HK$0.40 price target. To see the full list of analyst forecasts on Kwan Yong Holdings Limited stock, see the HK:9998 Stock Forecast page.

Kwan Yong Reshapes Nomination Committee to Bolster Governance

Kwan Yong Holdings Limited has reshaped its board’s nomination committee, appointing independent non-executive director Fong Heng Boo as a new member and removing non-executive director Chou Sean Yu from the committee with effect from 7 January 2026. The reconfigured nomination committee now consists of three independent non-executive directors and two executive directors, maintaining a majority of independent members in line with Hong Kong listing requirements, a move the board believes will strengthen board effectiveness, enhance diversity, and bolster the company’s overall corporate governance framework.

The most recent analyst rating on (HK:9998) stock is a Hold with a HK$0.40 price target. To see the full list of analyst forecasts on Kwan Yong Holdings Limited stock, see the HK:9998 Stock Forecast page.

Kwan Yong Holdings Reshapes Board Roles and Remuneration Committee Leadership

Kwan Yong Holdings Limited has announced a board-level reshuffle, redesignating independent non-executive director (INED) Chou Sean Yu as a non-executive director (NED) with effect from 19 December 2025. Chou, a veteran commercial litigator and managing partner of WongPartnership LLP with more than three decades of experience, will step down as chairman of the remuneration committee but remain a member of that committee, as well as continuing to serve on the audit and nomination committees. Under a new three-year appointment, he will receive an annual director’s fee of SGD35,000, reflecting his revised role and responsibilities. Concurrently, independent non-executive director Lim Ah Lay has been appointed chairman of the remuneration committee, signalling a rebalancing of independent oversight within the board’s key governance structures while maintaining continuity in committee membership and preserving the company’s existing governance framework.

The most recent analyst rating on (HK:9998) stock is a Hold with a HK$0.40 price target. To see the full list of analyst forecasts on Kwan Yong Holdings Limited stock, see the HK:9998 Stock Forecast page.

Kwan Yong Holdings Updates Board and Committee Composition

Kwan Yong Holdings Limited has announced the current composition of its board of directors, effective 19 December 2025, led by Chairman and Chief Executive Officer Mr. Kwan Mei Kam alongside three other executive directors, one non-executive director and three independent non-executive directors. The company has also detailed the membership of its Audit, Remuneration and Nomination Committees, assigning chairmanships and memberships among independent and non-executive directors, a move that underlines its emphasis on corporate governance, oversight and board independence for its shareholders and other stakeholders.

The most recent analyst rating on (HK:9998) stock is a Hold with a HK$0.40 price target. To see the full list of analyst forecasts on Kwan Yong Holdings Limited stock, see the HK:9998 Stock Forecast page.

Kwan Yong Wins Near-Unanimous Backing for All AGM Resolutions

Kwan Yong Holdings Limited has reported that all resolutions tabled at its 18 December 2025 annual general meeting in Singapore were approved by shareholders by overwhelming majorities. Investors backed the adoption of the audited financial statements for the year ended 30 June 2025, granted the board wide-ranging mandates to issue and repurchase shares, approved a final dividend of HK$0.02 per share, re-elected two executive directors and one independent non-executive director, authorised the board to set directors’ pay and re-appointed Ernst & Young LLP as auditor. Shareholders also passed a special resolution to adopt a third amended and restated memorandum and articles of association, giving the board a refreshed constitutional framework and broad authority to implement the changes, underscoring strong shareholder support for the company’s governance and capital management flexibility.

The most recent analyst rating on (HK:9998) stock is a Hold with a HK$0.40 price target. To see the full list of analyst forecasts on Kwan Yong Holdings Limited stock, see the HK:9998 Stock Forecast page.

Kwan Yong Holdings Secures SGD56.5 Million Nursing Home Project

Kwan Yong Holdings Limited announced that its subsidiary, Kwan Yong Construction Pte Ltd, has secured a construction contract worth approximately SGD56.5 million from the Ministry of Health of Singapore for the development of a nursing home at Bukit Purmei Avenue. The project is set to begin in December 2025. This contract is part of the company’s regular business activities and is not anticipated to significantly impact its financial metrics for the fiscal year ending June 2026, though the actual revenue may vary from the contract sum.

The most recent analyst rating on (HK:9998) stock is a Buy with a HK$0.50 price target. To see the full list of analyst forecasts on Kwan Yong Holdings Limited stock, see the HK:9998 Stock Forecast page.