Hock Lian Seng Holdings Limited (J2T) AI Stock Analysis

• Market Cap: S$222.77M
• Dividend Yield: 4.29%
• Average Volume (3M): 191.41K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.30
• Revenue Growth: -4.42%
• EPS Growth: -46.97%
• Country: SG
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 512,104,000
• 10 Day Avg. Volume: 198,500
• 30 Day Avg. Volume: 191,406
• PEG Ratio: 0.27
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 6.04
• 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$0.50 ▲(13.64% Upside)

The stock of Hock Lian Seng Holdings Limited scores well due to its strong financial performance, particularly its profitability and robust balance sheet. Technical analysis shows a positive trend, although some indicators suggest caution. The valuation is reasonable with a fair P/E ratio and an attractive dividend yield. The absence of earnings call and corporate events data does not impact the score.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates minimal leverage and financial risk, ensuring long-term stability and flexibility for future investments.

Profitability

Strong profitability with improving net profit margins suggests effective cost management and operational efficiency, supporting sustainable earnings.

Cash Flow Improvement

Improved cash flow from operations enhances liquidity and financial health, enabling the company to fund growth initiatives and reduce reliance on external financing.

Negative Factors

Revenue Decline

A decline in revenue indicates potential challenges in market demand or competitive positioning, which could impact long-term growth prospects if not addressed.

Earnings Growth Challenge

A significant drop in earnings per share growth suggests potential issues in scaling operations or market conditions, which could affect investor confidence and future profitability.

Revenue Growth Challenge

Stagnant or declining revenue growth can hinder long-term business expansion and market share acquisition, necessitating strategic initiatives to drive sales.

Hock Lian Seng Holdings Limited Business Overview & Revenue Model

Company Description

Hock Lian Seng Holdings Limited, an investment holding company, primarily provides civil engineering services to public and private sectors in Singapore. It operates through three segments: Civil Engineering, Properties Development, and Properties Investment. The Civil Engineering segment engages in infrastructure construction and civil engineering works for bridges, expressways, tunnels, mass rapid transit, port facilities, water and sewage facilities, and other infrastructure works to government and government related bodies. Its Properties Development segment develops properties in the residential and industrial sectors. The Properties Investment segment invests in properties for renting and/or for capital appreciation and others. Hock Lian Seng Holdings Limited was founded in 1969 and is based in Singapore.

How the Company Makes Money

Hock Lian Seng Holdings Limited generates revenue through a diversified model that incorporates multiple streams. The primary source of income comes from its construction contracts, which involve bidding for and executing projects awarded by both public and private sector clients. These contracts can range from large-scale infrastructure projects to smaller building developments. Additionally, the company earns revenue from its property development activities, where it may undertake the development of residential and commercial properties for sale or lease. Strategic partnerships with government agencies and private developers enhance its project pipeline and stability of revenue. Furthermore, the company may also engage in joint ventures or collaborations for specific projects, which can provide additional financial benefits and shared risks, contributing positively to its overall earnings.

Hock Lian Seng Holdings Limited Financial Statement Overview

Summary

Hock Lian Seng Holdings Limited shows strong profitability and a robust balance sheet with minimal debt, indicating financial stability. While revenue growth has been a challenge, the company has managed to improve its margins and cash flow. The overall financial health is solid, but attention to revenue growth and cash conversion efficiency is needed to sustain long-term performance.

Income Statement

The company has demonstrated strong profitability with a high net profit margin of 17.44% in 2024, up from 13.15% in 2023. However, revenue has decreased by 9.16% in 2024, indicating a potential challenge in maintaining growth. The gross profit margin has improved to 16.55% from 11.48% in 2023, showing better cost management. Overall, the income statement reflects solid profitability but with concerns over revenue growth.

Balance Sheet

The balance sheet is strong with a very low debt-to-equity ratio of 0.14%, indicating minimal leverage and financial risk. The return on equity is healthy at 11.26% in 2024, showing efficient use of equity. The equity ratio remains stable, reflecting a solid capital structure. The company maintains a strong financial position with low leverage and good returns on equity.

Cash Flow

Cash flow from operations has improved significantly, with a positive operating cash flow of $32.46 million in 2024 compared to a negative cash flow in 2023. Free cash flow has grown by 5.17%, indicating better cash management. However, the operating cash flow to net income ratio is below 1, suggesting that not all net income is being converted into cash. Overall, cash flow performance is improving but still has room for enhancement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	183.46M	201.96M	142.71M	168.62M	60.24M
Gross Profit	30.37M	23.20M	10.40M	17.05M	5.91M
EBITDA	25.36M	18.65M	9.78M	18.47M	12.95M
Net Income	31.99M	26.56M	16.51M	25.13M	4.24M
Balance Sheet
Total Assets	352.54M	341.00M	345.34M	342.51M	294.01M
Cash, Cash Equivalents and Short-Term Investments	181.92M	148.99M	120.76M	76.45M	74.13M
Total Debt	411.00K	85.00K	0.00	0.00	0.00
Total Liabilities	68.07M	81.92M	108.19M	114.86M	90.27M
Stockholders Equity	283.99M	258.69M	237.31M	227.70M	203.63M
Cash Flow
Free Cash Flow	28.79M	-6.91M	49.89M	6.08M	-16.23M
Operating Cash Flow	32.46M	-6.23M	51.06M	6.73M	-15.94M
Investing Cash Flow	1.62M	34.34M	-3.37M	1.99M	4.45M
Financing Cash Flow	-7.36M	-4.67M	-6.40M	-1.28M	-6.14M

Hock Lian Seng Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:J2T, the sentiment is Positive. The current price of 0.44 is above the 20-day moving average (MA) of 0.43, above the 50-day MA of 0.43, and above the 200-day MA of 0.42, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 62.21 is Neutral, neither overbought nor oversold. The STOCH value of 71.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:J2T.

Hock Lian Seng Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
J2T	70 Outperform	S$222.77M	11.04	7.27%	4.29%	-4.42%	-46.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%