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Kim Heng Ltd (SG:5G2)
:5G2
Singapore Market
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Kim Heng Ltd (5G2) AI Stock Analysis

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SG:5G2

Kim Heng Ltd

(SGX:5G2)

Rating:59Neutral
Price Target:
S$0.00
â–¼(-100.00%Downside)
Kim Heng Ltd's strong revenue growth and improving cash flow are positive aspects, but profitability challenges and rising leverage present risks. The technical indicators suggest bullish momentum, yet the high P/E ratio raises concerns about potential overvaluation. The dividend yield offers some compensation, but overall, the stock shows a moderate risk profile with areas needing strategic improvement.

Kim Heng Ltd (5G2) vs. iShares MSCI Singapore ETF (EWS)

Kim Heng Ltd Business Overview & Revenue Model

Company DescriptionKim Heng Ltd (5G2) is a Singapore-based company primarily engaged in the business of providing integrated offshore and marine services. The company's operations span across several sectors including offshore rig services, vessel maintenance, shipbuilding, and heavy equipment rental. Kim Heng Ltd is known for its comprehensive solutions in the maritime industry, catering to both local and international clients with a focus on delivering quality and efficient services.
How the Company Makes MoneyKim Heng Ltd makes money through a diversified revenue model that includes providing offshore rig services, such as maintenance, repair, and refurbishment of rigs and related equipment. Additionally, the company generates income from its vessel maintenance and shipbuilding services, which involve designing, constructing, and repairing ships and other marine structures. Another significant revenue stream comes from the rental of heavy equipment and vessels, offering logistical support to clients in the offshore oil and gas industry. Furthermore, strategic partnerships and contracts with major players in the maritime and energy sectors enhance their business prospects and contribute significantly to their earnings.

Kim Heng Ltd Financial Statement Overview

Summary
Kim Heng Ltd is experiencing strong revenue growth, but profitability is under pressure with declining margins. The balance sheet shows increasing leverage, posing potential risks. However, the cash flow health is strengthening, with significant improvements in operating cash flows.
Income Statement
67
Positive
Kim Heng Ltd has demonstrated strong revenue growth, with a growth rate of approximately 21.3% from 2023 to 2024, and a positive trend over the last few years. However, its gross profit margin decreased from 32.4% to 25.2% between 2023 and 2024, indicating increased cost pressure. The net profit margin also fell significantly to 0.2% in 2024, highlighting thin profitability. Despite these challenges, the company has maintained a positive EBITDA margin of 14.6% in 2024.
Balance Sheet
59
Neutral
The company's debt-to-equity ratio increased to 1.43 in 2024 from 1.09 in 2023, indicating rising leverage. The return on equity (ROE) fell to 0.5% in 2024 from 2.8% in 2023, reflecting weakened profitability relative to shareholder equity. The equity ratio stands at 27.9%, showing a moderate level of equity financing, but a trend of increasing debt may pose future risks.
Cash Flow
72
Positive
Kim Heng Ltd's free cash flow improved significantly, with a positive growth from a negative free cash flow in 2023 to positive in 2024. Operating cash flow increased to $12.73 million in 2024 from $2.55 million in 2023, indicating enhanced cash generation capabilities. The operating cash flow to net income ratio is high, suggesting efficient cash conversion. However, the free cash flow to net income ratio needs improvement.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue122.73M101.19M79.84M63.22M37.64M
Gross Profit30.99M32.76M27.73M16.05M7.43M
EBITDA17.93M17.90M21.74M5.43M627.00K
Net Income270.00K1.56M7.37M-5.89M-5.26M
Balance Sheet
Total Assets181.53M167.23M153.47M131.56M122.42M
Cash, Cash Equivalents and Short-Term Investments3.36M10.97M12.52M7.63M6.23M
Total Debt72.71M61.30M50.53M59.24M50.05M
Total Liabilities123.23M103.96M89.91M76.17M63.02M
Stockholders Equity50.71M55.98M56.84M49.80M55.40M
Cash Flow
Free Cash Flow1.15M-8.90M6.61M-5.13M-7.42M
Operating Cash Flow12.73M2.55M19.05M3.69M3.60M
Investing Cash Flow-11.04M-3.85M-320.00K3.34M-5.14M
Financing Cash Flow-11.16M-628.00K-14.13M-5.66M3.32M

Kim Heng Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.09
Price Trends
50DMA
0.08
Positive
100DMA
0.08
Positive
200DMA
0.08
Positive
Market Momentum
MACD
<0.01
Negative
RSI
73.36
Negative
STOCH
61.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5G2, the sentiment is Positive. The current price of 0.09 is above the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 73.36 is Negative, neither overbought nor oversold. The STOCH value of 61.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:5G2.

Kim Heng Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
S$119.70M6.588.01%3.36%0.66%117.48%
68
Neutral
S$533.03M43.618.16%5.82%9.93%10.63%
59
Neutral
S$62.83M222.500.51%2.39%20.29%-81.82%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:5G2
Kim Heng Ltd
0.09
0.00
0.00%
SG:BTP
Baker Technology Limited
0.60
-0.01
-1.64%

Kim Heng Ltd Corporate Events

Kim Heng Ltd Partners with SGEI for ASEAN Submarine Power Projects
Jun 9, 2025

Kim Heng Ltd has signed a non-binding memorandum of understanding with Singapore Energy Interconnections Pte. Ltd. to collaborate on operating, repairing, and maintaining submarine power cable systems in the ASEAN region. This partnership aligns with SGEI’s mission to develop cross-border power interconnectors, supporting the ASEAN Power Grid, and could potentially enhance Kim Heng’s operational capabilities and market positioning in the regional energy infrastructure sector.

Kim Heng Ltd Conducts Successful AGM with Key Resolutions Passed
May 23, 2025

Kim Heng Ltd held its Annual General Meeting (AGM) on April 28, 2025, in Singapore, chaired by Executive Chairman and CEO Thomas Tan Keng Siong. The AGM proceeded with the introduction of the Board of Directors and Chief Financial Officer, and voting on resolutions was conducted by poll, with the Chairman acting as proxy for several shareholders.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 26, 2025