Hong Lai Huat Group Limited (CTO) AI Stock Analysis

• Market Cap: S$24.86M
• Dividend Yield: N/A
• Average Volume (3M): 493.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• 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: 517,844,100
• 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: 44 Neutral
• Price Target: S$0.00 ▼(-100.00% Downside)

The overall stock score of 44 reflects significant financial challenges, particularly in profitability and cash flow management. While the balance sheet is stable, the negative return on equity and ongoing losses are concerning. Technical analysis provides mixed signals, with stable price trends but weak momentum. The valuation is unattractive due to negative earnings and the absence of a dividend yield.

Hong Lai Huat Group Limited Business Overview & Revenue Model

Company Description

Hong Lai Huat Group Limited (CTO) is a Singapore-based company primarily engaged in the construction and real estate sectors. The company focuses on providing integrated construction services, including building and civil engineering works, as well as property development. Hong Lai Huat also specializes in the production and supply of precast concrete products, which are essential components in modern construction practices. Through its diverse portfolio, the company aims to deliver high-quality solutions that meet the evolving needs of the construction market.

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

Hong Lai Huat Group Limited faces significant financial challenges, particularly in profitability and cash flow management. Despite strong revenue growth, the company struggles with high costs and negative margins. The balance sheet is stable with low leverage, but the negative return on equity is a concern. Overall, the company needs to address its operational inefficiencies and improve cash flow to enhance financial health.

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: Positive
• Last Price: 0.05
• 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:CTO, the sentiment is Positive. The current price of 0.05 is above the 20-day moving average (MA) of 0.05, above the 50-day MA of 0.05, and above the 200-day MA of 0.05, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.12 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$1.48B	9.83	4.10%	―	-8.06%	―
P36	68 Neutral	S$33.30M	9.70	1.80%	―	-9.26%	-41.23%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CTO	44 Neutral	S$24.86M	-0.97	-19.79%	―	―	―