Kim Heng Ltd (5G2) AI Stock Analysis

• Market Cap: S$58.59M
• Dividend Yield: 2.56%
• Average Volume (3M): 984.48K
• Price to Earnings (P/E): 207.5
• Beta (1Y): 0.58
• Revenue Growth: 20.29%
• EPS Growth: -81.82%
• Country: SG
• Employees: N/A
• Sector: Energy
• Sector Strength: 56
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 0.00
• Shares Outstanding: 710,000,000
• 10 Day Avg. Volume: 635,820
• 30 Day Avg. Volume: 984,483
• PEG Ratio: -0.04
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.98
• 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: 59 Neutral
• Price Target: S$0.00 ▼(-100.00%Downside)

Kim Heng Ltd shows strong revenue growth and improving cash flows, but faces challenges with profitability and increasing leverage. The technical analysis presents a mixed outlook with potential for rebound. Valuation concerns exist due to a high P/E ratio, though the dividend yield is attractive.

Kim Heng Ltd Business Overview & Revenue Model

Company Description

Kim Heng Ltd (5G2) is a Singapore-based company that operates in the marine and offshore sectors. The company is primarily engaged in the provision of integrated services for the oil and gas industry, as well as other marine-related sectors. Its core products and services include shipbuilding, ship repair, and maintenance services, along with offshore support services such as chartering of vessels and equipment for the offshore oil and gas industry.

How the Company Makes Money

Kim Heng Ltd generates revenue through multiple streams, primarily driven by its shipbuilding and ship repair services, which cater to the marine and offshore industries. This includes construction and maintenance of vessels, rigs, and other marine structures. Additionally, the company earns income from chartering vessels and equipment to clients in the offshore oil and gas sector, providing critical support services for exploration and production activities. The company's strategic partnerships and its ability to offer a comprehensive range of marine services contribute significantly to its earnings, allowing it to capture a wide scope of projects within the industry.

Kim Heng Ltd Financial Statement Overview

Summary

Kim Heng Ltd exhibits strong revenue growth with a 21.3% increase, but faces challenges with declining profit margins and increasing leverage. Cash flow generation is improving, but profitability and debt management remain key areas for improvement.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.23M	122.73M	101.19M	79.84M	63.22M	37.64M
Gross Profit	33.70M	30.99M	32.76M	27.73M	16.05M	7.43M
EBITDA	21.68M	17.93M	17.90M	21.74M	5.43M	627.00K
Net Income	-1.22M	270.00K	1.56M	7.37M	-5.89M	-5.26M
Balance Sheet
Total Assets	175.39M	181.53M	167.23M	153.47M	131.56M	122.42M
Cash, Cash Equivalents and Short-Term Investments	5.57M	3.36M	10.97M	12.52M	7.63M	6.23M
Total Debt	63.73M	72.71M	61.30M	50.53M	59.24M	50.05M
Total Liabilities	111.21M	123.23M	103.96M	89.91M	76.17M	63.02M
Stockholders Equity	55.25M	50.71M	55.98M	56.84M	49.80M	55.40M
Cash Flow
Free Cash Flow	-4.95M	1.15M	-8.90M	6.61M	-5.13M	-7.42M
Operating Cash Flow	2.81M	12.73M	2.55M	19.05M	3.69M	3.60M
Investing Cash Flow	-5.29M	-11.04M	-3.85M	-320.00K	3.34M	-5.14M
Financing Cash Flow	2.19M	-11.16M	-628.00K	-14.13M	-5.66M	3.32M

Kim Heng Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5G2, the sentiment is Neutral. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, above the 50-day MA of 0.08, and below the 200-day MA of 0.08, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.17 is Neutral, neither overbought nor oversold. The STOCH value of -42.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:5G2.

Kim Heng Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTP	75 Outperform	S$111.58M	6.14	8.01%	4.68%	0.66%	117.48%
Sector *	64 Neutral	S$484.77M	40.57	8.16%	7.36%	9.93%	10.63%
5G2	59 Neutral	S$58.59M	207.50	0.51%	2.56%	20.29%	-81.82%

Kim Heng Ltd Corporate Events

Kim Heng Ltd Partners with SGEI for ASEAN Submarine Power Projects

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

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.