Sin Heng Heavy Machinery Limited (BKA) AI Stock Analysis

• Market Cap: €79.34M
• Dividend Yield: 1.43%
• Average Volume (3M): 8.00K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.18
• Revenue Growth: -9.88%
• EPS Growth: -35.30%
• Country: SG
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Agricultural - Machinery
• EPS (TTM): 0.02
• Shares Outstanding: 113,413,000
• 10 Day Avg. Volume: 8,660
• 30 Day Avg. Volume: 8,000
• PEG Ratio: -0.51
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 5.38
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: S$1.00 ▲(42.86% Upside)

Sin Heng Heavy Machinery Limited scores well due to its stable financial position and positive technical indicators. The strong balance sheet and efficient cost management are significant strengths, while challenges in revenue growth and cash flow generation are notable risks. The stock's valuation is reasonable, with a fair P/E ratio and a modest dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility, enabling the company to navigate economic fluctuations and invest in growth opportunities.

Efficient Cost Management

Efficient cost management ensures profitability even in challenging market conditions, supporting long-term financial health and competitive positioning.

Diverse Revenue Streams

Diverse revenue streams reduce dependency on any single source, providing stability and resilience against sector-specific downturns, enhancing long-term growth prospects.

Negative Factors

Declining Revenue Growth

Declining revenue growth may limit the company's ability to expand and compete effectively, potentially impacting its market position and long-term profitability.

Cash Flow Challenges

Challenges in cash flow generation can constrain operational flexibility and investment capacity, affecting the company's ability to sustain growth and weather financial pressures.

Pressure on Operational Efficiency

Decreasing operational efficiency may lead to reduced profitability and competitiveness, necessitating strategic adjustments to maintain market position and financial performance.

Sin Heng Heavy Machinery Limited Business Overview & Revenue Model

Company Description

Sin Heng Heavy Machinery Limited (BKA) is a leading provider of heavy machinery and equipment in Southeast Asia, specializing in the sales, rental, and servicing of construction and industrial machinery. The company operates primarily in sectors such as construction, logistics, and infrastructure development, and offers a diverse range of products including cranes, excavators, and lifting equipment. With a strong commitment to safety and reliability, Sin Heng also provides comprehensive support services including maintenance and parts supply to ensure optimal performance of its machinery.

How the Company Makes Money

Sin Heng Heavy Machinery Limited generates revenue through multiple key streams. The primary source of income comes from the sale of heavy machinery and equipment to construction and industrial companies. In addition to sales, the company earns significant revenue from the rental of its machinery, catering to clients who require equipment for short-term projects without the need for outright purchase. Furthermore, Sin Heng capitalizes on its service offerings, which include maintenance, repair, and parts supply, creating ongoing revenue from existing clients. The company may also benefit from strategic partnerships with machinery manufacturers, which can enhance its product offerings and expand its market reach, thus contributing to its overall earnings.

Sin Heng Heavy Machinery Limited Financial Statement Overview

Summary

Sin Heng Heavy Machinery Limited demonstrates a stable financial position with strong balance sheet metrics and efficient cost management. However, challenges in revenue growth and cash flow generation could impact future financial flexibility. The low leverage provides a cushion against financial volatility, but improving cash flow generation will be crucial for sustaining long-term growth.

Income Statement

Sin Heng Heavy Machinery Limited shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth rate by 33%, reflecting a challenging market environment. However, the company maintains a healthy gross profit margin of 30.27% and a net profit margin of 10.48%, indicating efficient cost management. The EBIT and EBITDA margins are relatively stable, though they have decreased compared to the previous year, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet of Sin Heng Heavy Machinery Limited is strong, with a low debt-to-equity ratio of 0.0245, indicating minimal leverage and financial risk. The return on equity is modest at 4.94%, reflecting moderate profitability from shareholders' investments. The equity ratio stands at a robust level, showcasing a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals some concerns, particularly with a significant decline in free cash flow growth by 57.52% in the TTM period. The operating cash flow to net income ratio is below 1, suggesting potential challenges in converting earnings into cash. However, the free cash flow to net income ratio remains healthy at 0.95, indicating that the company is still generating sufficient cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.95M	50.28M	66.23M	51.57M	53.73M	53.36M
Gross Profit	15.12M	16.72M	18.43M	12.84M	13.39M	6.56M
EBITDA	10.49M	13.88M	16.68M	11.55M	12.80M	5.82M
Net Income	5.24M	6.27M	8.00M	3.65M	3.77M	1.20M
Balance Sheet
Total Assets	122.73M	125.70M	127.83M	125.70M	124.11M	127.44M
Cash, Cash Equivalents and Short-Term Investments	38.22M	47.85M	44.64M	39.85M	49.82M	32.71M
Total Debt	7.68M	5.81M	8.72M	9.40M	4.50M	5.25M
Total Liabilities	18.35M	18.16M	21.63M	20.96M	15.31M	14.98M
Stockholders Equity	104.38M	107.54M	106.20M	104.74M	108.80M	112.47M
Cash Flow
Free Cash Flow	3.09M	11.46M	5.14M	-8.46M	26.92M	13.92M
Operating Cash Flow	3.26M	11.90M	10.72M	-8.16M	26.98M	14.06M
Investing Cash Flow	-14.54M	-19.19M	2.69M	479.00K	-1.51M	314.00K
Financing Cash Flow	-5.19M	-9.06M	-6.58M	-2.13M	-9.92M	-6.88M

Sin Heng Heavy Machinery Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.70
• 50DMA: Negative
• 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 SG:BKA, the sentiment is Negative. The current price of 0.7 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.71, and above the 200-day MA of 0.61, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 38.06 is Neutral, neither overbought nor oversold. The STOCH value of 32.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:BKA.

Sin Heng Heavy Machinery Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKA	70 Outperform	€79.34M	14.63	5.15%	1.43%	-9.88%	-35.30%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
A04	61 Neutral	S$257.26M	16.89	―	0.78%	―	―
BKX	58 Neutral	S$55.02M	14.94	―	1.57%	―	―