Kwan Yong Holdings Limited (9998) AI Stock Analysis

• Market Cap: HK$144.80M
• Dividend Yield: N/A
• Average Volume (3M): 41.33K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.55
• Revenue Growth: 43.39%
• EPS Growth: 38.64%
• Country: HK
• Employees: 504
• Sector: Industrials
• Sector Strength: 89
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 22,500
• 30 Day Avg. Volume: 41,333
• PEG Ratio: 0.06
• Price to Book (P/B): 0.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.76
• 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: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$0.00 ▼(-100.00%Downside)

Kwan Yong Holdings Limited's stock is rated 75, driven by its strong financial performance with robust cash flow generation and a solid balance sheet. Technical analysis supports a bullish outlook, while valuation metrics suggest the stock is undervalued. The lack of earnings call data and corporate events does not detract from the stock's positive attributes.

Kwan Yong Holdings Limited Business Overview & Revenue Model

Company Description

Kwan Yong Holdings Limited (9998) is a Singapore-based construction company primarily engaged in providing a wide range of building construction services. The company specializes in the construction of residential, commercial, and industrial projects, offering comprehensive solutions that include design, project management, and construction execution. With a strong presence in the construction sector, Kwan Yong Holdings has built a reputation for delivering quality projects on time and within budget.

How the Company Makes Money

Kwan Yong Holdings Limited makes money through its core business of building construction services. The company's revenue model is based on securing construction contracts from both public and private sector clients. These contracts are typically for residential, commercial, and industrial projects, which the company executes using its expertise in project management and construction. Key revenue streams include project fees, which are paid in installments as construction milestones are met. Additionally, the company may engage in strategic partnerships with developers, architects, and other stakeholders to enhance its service offerings and secure more contracts. Factors contributing to its earnings include its established reputation for quality and reliability, which helps in winning bids for large-scale projects.

Kwan Yong Holdings Limited Financial Statement Overview

Summary

The financial performance of Kwan Yong Holdings Limited is solid with notable revenue growth and strong cash flow generation. However, low profitability margins and a negative EBIT margin highlight operational challenges, despite a stable balance sheet with low debt levels.

Income Statement

Kwan Yong Holdings Limited shows a mixed performance in its income statement. The revenue growth from 2023 to 2024 is notable, with a 20.1% increase, indicating positive business momentum. However, the net profit margin stands at 1.17%, which is relatively low, reflecting thin profitability. The company also reported a negative EBIT margin of -1.40%, suggesting operational challenges. Despite these challenges, the firm has maintained a positive EBITDA margin of 0.29%.

Balance Sheet

The balance sheet of Kwan Yong Holdings Limited depicts a stable financial position. The debt-to-equity ratio is low at 0.11, indicating low financial leverage and risk. The equity ratio is 39.43%, showing a solid capital base. Return on Equity (ROE) is 4.03%, which could be improved but indicates that the company is generating returns for shareholders. Overall, the balance sheet reflects financial stability with room for enhancing profitability.

Cash Flow

The cash flow statement reveals strong cash generation capabilities, with a significant increase in free cash flow from 2023 to 2024, growing by 99.9%. The operating cash flow to net income ratio is 12.49, highlighting efficient cash generation from operations relative to net earnings. The free cash flow to net income ratio is 11.23, further underscoring robust cash flow generation. These metrics suggest effective cash management and a healthy liquidity position.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	133.83M	111.44M	77.77M	90.53M	127.49M
Gross Profit	7.74M	8.61M	3.76M	-5.18M	-9.17M
EBITDA	382.00K	3.58M	-283.00K	-3.93M	-15.50M
Net Income	1.57M	2.33M	-391.00K	-6.21M	-16.95M
Balance Sheet
Total Assets	98.92M	85.29M	71.84M	86.15M	98.87M
Cash, Cash Equivalents and Short-Term Investments	42.03M	22.91M	13.88M	32.54M	48.05M
Total Debt	4.45M	3.36M	4.85M	7.12M	8.04M
Total Liabilities	59.90M	47.87M	36.83M	50.73M	56.50M
Stockholders Equity	39.01M	37.42M	35.02M	35.43M	42.37M
Cash Flow
Free Cash Flow	17.64M	8.83M	-15.26M	-13.48M	21.21M
Operating Cash Flow	19.62M	9.41M	-14.68M	-10.35M	22.72M
Investing Cash Flow	176.00K	1.25M	-1.53M	-2.74M	1.79M
Financing Cash Flow	-1.52M	-1.62M	-2.29M	-1.97M	23.84M

Kwan Yong Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.18
• 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:9998, the sentiment is Positive. The current price of 0.18 is below the 20-day moving average (MA) of 0.18, above the 50-day MA of 0.18, and above the 200-day MA of 0.13, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 34.62 is Neutral, 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	75 Outperform	HK$144.80M	7.42	8.54%	―	43.39%	38.64%
2663	72 Outperform	HK$189.36M	5.24	13.06%	47.06%	23.89%	26.19%
2017	71 Outperform	HK$179.37M	6.05	2.78%	―	-8.97%	-12.59%
Sector *	58 Neutral	HK$14.16B	4.53	-3.01%	6.82%	3.67%	-54.16%
1459	50 Neutral	HK$178.68M	32.84	0.31%	5.97%	-20.04%	-58.20%
1559	40 Underperform	HK$171.96M	―	-54.25%	―	9.07%	-6.24%

Kwan Yong Holdings Limited Corporate Events

Kwan Yong Holdings Secures SGD151 Million Contract for Singapore Junior College Redevelopment

Kwan Yong Holdings Limited announced that its subsidiary, Kwan Yong Construction Pte Ltd, has secured a SGD151 million construction contract from the Ministry of Education of Singapore for the redevelopment of a junior college. The project is set to begin in mid-July 2025. While the contract is a part of the company’s regular business activities, it is not expected to significantly impact the company’s net tangible assets or earnings per share for the financial year ending June 2026. The actual revenue from the contract may vary from the contract sum.