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Yau Lee Holdings Limited
(0406)
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Rating:42Neutral
Price Target:
HK$0.47
▼(-38.68% Downside)
Action:Reiterated
Date:08/17/26
The score is primarily held down by weakened financial performance: margin compression, back-to-back net losses, and materially higher leverage reduce flexibility despite strong revenue growth and a 2026 cash flow rebound. Technicals are mildly weak (below key longer-term averages with slightly negative MACD), and valuation is constrained by negative earnings and no provided dividend yield.
Positive Factors
Strong Revenue Growth
Sustained revenue expansion over three consecutive years indicates strong project activity and continued demand for the group’s construction and engineering services. If execution remains disciplined, this larger revenue base can support operating scale, improve market presence, and provide a foundation for future earnings recovery.
Negative Factors
Losses and Margin Compression
The shift from profit to increasingly large losses, combined with negative operating margins and sharply lower gross margins, shows that higher revenue is not translating into profitable growth. Persistent cost pressure or weaker project pricing could constrain reinvestment and undermine earnings recovery over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained revenue expansion over three consecutive years indicates strong project activity and continued demand for the group’s construction and engineering services. If execution remains disciplined, this larger revenue base can support operating scale, improve market presence, and provide a foundation for future earnings recovery.
Read all positive factors
Yau Lee Holdings Limited (0406) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$216.84M
Dividend Yield5.18%
Average Volume (3M)8.63K
Price to Earnings (P/E)―
Beta (1Y)0.10
Revenue Growth13.50%
EPS Growth-106.11%
CountryHK
Employees4,500
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)-0.46
Shares Outstanding438,053,600
10 Day Avg. Volume19,600
30 Day Avg. Volume8,625
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.28
Price to Sales (P/S)0.03
P/FCF Ratio15.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Yau Lee Holdings Limited Business Overview & Revenue Model
Company Description
Yau Lee Holdings Limited, established in 1958 and headquartered in Kowloon Bay, Hong Kong, functions as an investment holding company. Its primary business centers on the construction industry, with operations spanning Hong Kong, Macau, Singapore,...
How the Company Makes Money
The company primarily makes money through contracting revenue earned from delivering construction and engineering projects. Its core revenue model is project-based: it bids for and is awarded contracts, then recognizes revenue as it performs work ...
Yau Lee Holdings Limited Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
32
Negative
Cash Flow
41
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 10.92B | 9.62B | 7.81B | 6.69B | 6.73B |
| Gross Profit | 447.38M | 134.94M | 682.48M | 552.31M | 659.23M |
| EBITDA | -52.26M | 150.21M | 226.98M | 185.12M | 211.00M |
| Net Income | -203.77M | -98.88M | 67.09M | 49.64M | 68.19M |
Balance Sheet | |||||
| Total Assets | 7.17B | 6.57B | 5.73B | 4.85B | 4.74B |
| Cash, Cash Equivalents and Short-Term Investments | 1.13B | 718.65M | 905.59M | 742.58M | 934.31M |
| Total Debt | 3.23B | 2.79B | 2.31B | 1.38B | 1.35B |
| Total Liabilities | 5.94B | 5.20B | 4.22B | 3.35B | 3.20B |
| Stockholders Equity | 1.23B | 1.38B | 1.51B | 1.51B | 1.54B |
Cash Flow | |||||
| Free Cash Flow | 21.81M | -450.67M | -623.19M | -285.56M | 750.49M |
| Operating Cash Flow | 125.87M | -280.08M | -463.32M | -237.30M | 813.44M |
| Investing Cash Flow | -94.33M | -133.15M | -148.43M | -26.21M | -20.28M |
| Financing Cash Flow | 342.84M | 270.77M | 791.25M | 25.95M | -517.72M |
Yau Lee Holdings Limited Technical Analysis
Negative
0.76
Price Trends
0.51
Negative
0.53
Negative
0.63
Negative
Market Momentum
>-0.01
Positive
47.25
Neutral
33.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0406, the sentiment is Negative. The current price of 0.76 is above the 20-day moving average (MA) of 0.51, above the 50-day MA of 0.51, and above the 200-day MA of 0.63, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.25 is Neutral, neither overbought nor oversold. The STOCH value of 33.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0406.
Yau Lee Holdings Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | HK$1.73B | 3.76 | 15.72% | 12.19% | -12.79% | -0.62% | |
71 Outperform | HK$1.08B | 23.19 | 4.18% | 18.75% | -18.58% | -27.75% | |
67 Neutral | HK$45.85B | 5.36 | 10.83% | 7.08% | -14.20% | -12.79% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | HK$725.71M | 0.94 | 31.00% | 5.49% | -12.39% | ― | |
43 Neutral | HK$316.56M | -0.35 | -31.01% | 7.32% | -22.33% | -203.23% | |
42 Neutral | HK$216.84M | -1.07 | -15.28% | 5.18% | 13.50% | -106.11% |
* Industrials Sector Average
HK:0406
Yau Lee Holdings Limited
0.50
-0.20
-29.29%
HK:0240
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1.39
0.01
0.87%
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8.68
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5.78%
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0.05
19.43%
HK:0610
Wai Kee Holdings Limited
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Tysan Holdings Limited
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Yau Lee Holdings Limited Corporate Events
Yau Lee Wins Unanimous Shareholder Backing for AGM Resolutions and Capital Mandates
Aug 17, 2026
Yau Lee Holdings Limited reported that all resolutions proposed at its annual general meeting on 17 August 2026 were approved by shareholders through a poll, reflecting unanimous support from the 276,071,515 votes cast. The meeting received and ad...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.