Kim Heng Ltd (5G2) AI Stock Analysis

• Market Cap: S$62.83M
• Dividend Yield: 2.39%
• Average Volume (3M): 607.66K
• Price to Earnings (P/E): 222.5
• Beta (1Y): 0.59
• Revenue Growth: 20.29%
• EPS Growth: -81.82%
• Country: SG
• Employees: N/A
• Sector: Energy
• Sector Strength: 48
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): <0.01
• Shares Outstanding: 710,000,000
• 10 Day Avg. Volume: 508,800
• 30 Day Avg. Volume: 607,656
• PEG Ratio: N/A
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.38
• 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

• Rating: 59 Neutral
• Price Target: S$0.00 ▼(-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 Business Overview & Revenue Model

Company Description

Kim 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 Money

Kim 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

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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTP	73 Outperform	S$119.70M	6.58	8.01%	3.36%	0.66%	117.48%
Sector *	68 Neutral	S$533.03M	43.61	8.16%	5.82%	9.93%	10.63%
5G2	59 Neutral	S$62.83M	222.50	0.51%	2.39%	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.