Hong Lai Huat Group Limited (CTO) AI Stock Analysis

• Market Cap: S$40.80M
• Dividend Yield: N/A
• Average Volume (3M): 493.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.92
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: SG
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): >-0.01
• Shares Outstanding: 509,997,530
• 10 Day Avg. Volume: 688,680
• 30 Day Avg. Volume: 493,980
• PEG Ratio: 0.06
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 309.69
• P/FCF Ratio: -5.43
• 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: 49 Neutral
• Price Target: S$0.09 ▲(24.29% Upside)

The score is held back primarily by weak financial performance: despite strong revenue growth, profitability is negative and operating/free cash flows are consistently negative, with negative ROE. Technicals provide partial support due to an upward trend and positive MACD, but overbought RSI/Stoch readings add near-term risk. Valuation impact is neutral because P/E and dividend yield are not available.

Positive Factors

Revenue Growth

A 73% TTM revenue increase indicates meaningful expansion of contract wins or project scale. Over 2-6 months this supports better fixed-cost absorption, greater bargaining power with suppliers, and the potential to convert scale into improving operational leverage if cost control follows revenue growth.

Low Leverage / Balance Sheet

Extremely low leverage gives durable financial flexibility in a cyclical construction market. It reduces interest burden and preserves capacity to fund new bids, capex, or absorb project timing swings without immediate refinancing, strengthening resilience across multiple quarters.

Integrated Business Model

Vertical integration (construction, property development, in-house precast supply) is a structural advantage: it lowers input volatility, shortens supply chains, and creates cross-selling and margin capture opportunities, supporting more predictable delivery and competitive bidding over the medium term.

Negative Factors

Profitability Deficit

Sustained negative margins and ROE indicate the firm is not converting revenue into profit, eroding equity and limiting reinvestment. Without structural margin improvement, ongoing losses can impair capital availability and long-term ability to fund growth or return value to shareholders.

Weak Cash Generation

Persistent negative operating and free cash flow undermines the firm's capacity to self-fund working capital and project execution. Over several months this raises reliance on external financing, increases execution risk on projects, and can constrain timely payments to suppliers.

Margin Sustainability Risk

Negative operating margins point to structural cost or pricing issues (underbidding, cost overruns, or inefficiencies in precast production). Unless addressed, these impair competitive positioning by forcing either higher prices or continued losses, limiting sustainable profitability over time.

Hong Lai Huat Group Limited Business Overview & Revenue Model

Company Description

Hong Lai Huat Group Limited, an investment holding company, operates as a real estate and property developer in Singapore and Cambodia. It invests in and develops commercial and residential properties. The company was formerly known as HLH Group Limited and changed its name to Hong Lai Huat Group Limited in April 2018. Hong Lai Huat Group Limited was founded in 1988 and is based in Singapore.

How the Company Makes Money

Hong Lai Huat Group Limited generates revenue through multiple streams, primarily from its construction contracts and property development projects. The company engages in both public and private sector construction works, earning income through fixed-price contracts, cost-plus contracts, and other project-based agreements. Additionally, revenue is derived from the sale of precast concrete products, which are produced in-house and supplied to various construction projects. The company may also benefit from strategic partnerships with other construction firms, government agencies, and private developers, enhancing its project opportunities and market reach. Overall, the combination of contract-based income and product sales forms the core of Hong Lai Huat's revenue model.

Hong Lai Huat Group Limited Financial Statement Overview

Summary

Strong TTM revenue growth (+73.37%) is outweighed by weak fundamentals: deeply negative net margin (-15.10%), negative EBIT/EBITDA margins, and negative ROE (-9.85%). Cash flow is also concerning with negative operating and free cash flow, despite low leverage (debt-to-equity 0.021).

Income Statement

The income statement shows significant challenges with profitability. The company has experienced a substantial increase in revenue over the TTM (Trailing-Twelve-Months) period, with a growth rate of 73.37%. However, the net profit margin is deeply negative at -15.10%, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Despite the revenue growth, the company struggles with high costs and negative profitability.

Balance Sheet

The balance sheet indicates a relatively low debt-to-equity ratio of 0.021, suggesting conservative leverage. However, the return on equity is negative at -9.85%, highlighting the company's inability to generate profits from its equity base. The equity ratio is strong, indicating a solid capital structure, but the negative ROE reflects poor financial performance.

Cash Flow

The cash flow statement reveals negative operating cash flow and free cash flow, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. Despite a positive free cash flow to net income ratio, the overall cash flow situation is concerning due to consistent negative cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	664.00K	102.00K	-184.00K	1.64M	16.73M	7.20M
Gross Profit	35.00K	15.00K	-103.00K	677.00K	10.24M	2.47M
EBITDA	-4.46M	-4.60M	-4.35M	-10.93M	7.31M	-5.90M
Net Income	-10.03M	-12.93M	-23.21M	-12.05M	3.48M	-8.53M
Balance Sheet
Total Assets	103.34M	110.59M	133.35M	156.11M	171.82M	162.64M
Cash, Cash Equivalents and Short-Term Investments	20.99M	27.48M	3.98M	11.63M	26.17M	9.63M
Total Debt	2.03M	1.08M	11.92M	5.54M	6.04M	23.26M
Total Liabilities	5.07M	5.71M	22.06M	21.08M	23.15M	45.00M
Stockholders Equity	98.47M	105.09M	111.28M	135.03M	148.68M	117.64M
Cash Flow
Free Cash Flow	-5.23M	-5.82M	-6.03M	1.28M	7.86M	-19.36M
Operating Cash Flow	-4.83M	-5.16M	-5.64M	1.86M	9.09M	-18.75M
Investing Cash Flow	28.44M	39.50M	-7.05M	-14.38M	-1.17M	-3.98M
Financing Cash Flow	-7.56M	-8.61M	4.51M	-3.31M	8.42M	21.25M

Hong Lai Huat Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.07
• 50DMA: Positive
• 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:CTO, the sentiment is Neutral. The current price of 0.07 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.07, and above the 200-day MA of 0.05, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 50.47 is Neutral, neither overbought nor oversold. The STOCH value of 48.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:CTO.

Hong Lai Huat Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
H13	69 Neutral	S$1.62B	10.76	4.10%	1.83%	-8.06%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
P36	65 Neutral	S$29.71M	4.50	3.50%	―	89.40%	239.47%
CTO	49 Neutral	S$40.80M	―	-19.79%	―	―	―

Hong Lai Huat Group Limited Corporate Events

Hong Lai Huat Details Poll-Based Voting and Proxy Arrangements at 2025 EGM

Hong Lai Huat Group Limited convened an Extraordinary General Meeting (EGM) on 24 November 2025 at Raffles Town Club in Singapore, with a valid quorum of shareholders present and its board and key officers in attendance, including one independent director participating via Zoom. The company confirmed that the resolution at the EGM would be decided by poll voting in line with Singapore Exchange requirements, appointing B.A.C.S. Private Limited as polling agent and CACS Corporate Advisory Pte. Ltd. as scrutineer, and noted that the chairman had been designated as proxy for numerous shareholders, voting in accordance with their verified instructions, underscoring the group’s adherence to formal corporate governance and shareholder engagement processes.

The most recent analyst rating on (SG:CTO) stock is a Hold with a S$0.08 price target. To see the full list of analyst forecasts on Hong Lai Huat Group Limited stock, see the SG:CTO Stock Forecast page.