Kim Heng Ltd (5G2) AI Stock Analysis

• Market Cap: S$62.83M
• Dividend Yield: 2.44%
• Average Volume (3M): 895.78K
• Price to Earnings (P/E): 35.6
• Beta (1Y): 0.52
• Revenue Growth: 18.61%
• EPS Growth: N/A
• Country: SG
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): <0.01
• Shares Outstanding: 710,000,000
• 10 Day Avg. Volume: 1,129,930
• 30 Day Avg. Volume: 895,776
• PEG Ratio: -2.74
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 52.90
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: S$0.09 ▼(-5.56% Downside)

Kim Heng Ltd's stock score is primarily influenced by its financial performance and technical analysis. The company shows revenue growth but struggles with profitability and cash flow, which are significant concerns. The technical indicators suggest a positive trend, but the high RSI indicates potential overbought conditions. Valuation concerns due to a high P/E ratio further weigh down the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong demand for services and products, suggesting a solid market position and potential for future expansion.

Market Position

These partnerships enhance market position and provide a steady flow of projects, supporting long-term revenue stability and growth.

Business Model

Diversified service offerings in the marine sector reduce dependency on a single revenue stream, enhancing resilience against market fluctuations.

Negative Factors

Profitability Challenges

Declining margins indicate challenges in cost management and pricing power, which could affect long-term profitability and competitiveness.

Leverage and Debt

Increased leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Issues

Negative cash flow growth suggests liquidity challenges, which could hinder the company's ability to fund operations and strategic initiatives.

Kim Heng Ltd Business Overview & Revenue Model

Company Description

Kim Heng Ltd (5G2) is a Singapore-based company primarily engaged in the offshore and marine industry. The company provides a range of services including shipbuilding, repair and conversion, as well as marine engineering solutions. Kim Heng Ltd also focuses on the supply of marine equipment and products, catering to both domestic and international clients involved in the maritime sector. With a commitment to quality and innovation, the company aims to enhance operational efficiency and sustainability within the marine industry.

How the Company Makes Money

Kim Heng Ltd generates revenue through multiple streams primarily within the offshore and marine sectors. Key revenue streams include shipbuilding and repair services, which involve constructing new vessels or maintaining existing ones for various clients, including shipping companies and offshore operators. Additionally, the company earns income from the sale of marine equipment and components, which are essential for the operation and maintenance of vessels. Strategic partnerships with major industry players and contracts with governmental and commercial entities further bolster their revenue, providing a steady flow of projects and service agreements. The company's focus on expanding its service offerings and enhancing its technological capabilities also plays a crucial role in driving sales and increasing profitability.

Kim Heng Ltd Financial Statement Overview

Summary

Kim Heng Ltd is experiencing growth in revenue but faces challenges in profitability and cash flow management. The increased leverage and declining margins pose risks, while the low return on equity indicates limited shareholder returns. The company needs to focus on improving operational efficiency and cash flow generation to enhance financial stability.

Income Statement

Kim Heng Ltd has shown a positive revenue growth rate of 8.39% in the latest year, indicating a recovery trend. However, the gross profit margin has declined from 32.37% to 25.25%, and the net profit margin is very low at 0.22%, reflecting challenges in maintaining profitability. The EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.43, indicating higher leverage and potential risk. Return on equity is low at 0.53%, showing limited returns for shareholders. The equity ratio stands at 27.93%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Kim Heng Ltd's free cash flow has declined significantly, with a growth rate of -123.13%, indicating cash flow challenges. The operating cash flow to net income ratio is 0.14, suggesting limited cash generation relative to net income. The free cash flow to net income ratio is 0.09, highlighting potential liquidity concerns.

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	16.87M	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: Positive
• Last Price: 0.09
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 0.09, above the 50-day MA of 0.09, and above the 200-day MA of 0.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 66.09 is Neutral, neither overbought nor oversold. The STOCH value of 114.29 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DU4	53 Neutral	S$232.56M	21.21	5.18%	―	2.00%	-28.40%
5G2	52 Neutral	S$62.83M	35.60	3.36%	2.44%	18.61%	―
BTP	48 Neutral	S$103.47M	―	-5.60%	3.96%	-40.02%	-176.13%