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Kwong Luen Engineering Holdings Limited (HK:1413)
:1413
Hong Kong Market
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Kwong Luen Engineering Holdings Limited (1413) AI Stock Analysis

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HK:1413

Kwong Luen Engineering Holdings Limited

(1413)

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Neutral 48 (OpenAI - 5.2)
Rating:48Neutral
Price Target:
HK$0.22
▼(-42.37% Downside)
Action:Reiterated
Date:08/17/26
The score is held down primarily by weak financial performance—recent heavy losses, negative gross profit, and persistently negative operating/free cash flow—despite a relatively conservative balance sheet. Technicals provide some offset with a strong short-term rebound (price above 20/50DMAs and positive MACD), but overbought readings and a weak longer-term trend limit the uplift. Valuation is also unfavorable given the negative P/E and no dividend yield data.
Positive Factors
Conservative leverage
Low debt relative to equity reduces refinancing and solvency pressure, giving the company greater flexibility to manage construction-cycle volatility and address operational issues without immediate dependence on additional borrowing.
Negative Factors
Severe profitability deterioration
Negative gross profit means recent contracts are failing to cover direct costs, creating a fundamental earnings problem. Sustained execution or pricing weakness could continue eroding equity and limit internally funded growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
Low debt relative to equity reduces refinancing and solvency pressure, giving the company greater flexibility to manage construction-cycle volatility and address operational issues without immediate dependence on additional borrowing.
Read all positive factors

Kwong Luen Engineering Holdings Limited (1413) vs. iShares MSCI Hong Kong ETF (EWH)

Kwong Luen Engineering Holdings Limited Business Overview & Revenue Model

Company Description
Kwong Luen Engineering Holdings Limited operates as an investment holding company with its primary operations centered on foundation contracting services in Hong Kong. The firm's specialized activities include excavation and lateral support, the c...
How the Company Makes Money
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Kwong Luen Engineering Holdings Limited Financial Statement Overview

Summary
Financials are pressured: profitability deteriorated sharply with deep losses and negative gross profit in the most recent periods (2025–2026), and revenue has been volatile. The balance sheet is a relative positive with conservative leverage, but equity has declined and ROE is negative due to losses. Cash generation is a major weakness, with operating cash flow and free cash flow negative in most years shown, indicating weak cash conversion and funding strain risk.
Income Statement
22
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2022
Income Statement
Total Revenue197.27M404.95M618.19M338.32M548.84M
Gross Profit-3.89M-59.95M34.76M11.91M46.17M
EBITDA-28.18M-72.67M36.90M13.93M50.80M
Net Income-54.53M-81.52M17.26M1.00M23.52M
Balance Sheet
Total Assets274.13M298.61M381.17M292.71M310.07M
Cash, Cash Equivalents and Short-Term Investments33.27M33.92M25.15M25.36M42.65M
Total Debt4.13M5.58M31.07M3.13M23.72M
Total Liabilities65.62M66.76M114.79M43.59M61.95M
Stockholders Equity198.93M221.87M266.38M249.12M248.12M
Cash Flow
Free Cash Flow-29.45M-18.28M-37.95M-1.75M-68.92M
Operating Cash Flow-16.89M-11.48M-29.47M10.00M-27.67M
Investing Cash Flow-12.54M8.24M2.67M-6.69M-41.26M
Financing Cash Flow28.74M12.01M26.59M-20.59M3.92M

Kwong Luen Engineering Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.38
Price Trends
50DMA
0.19
Positive
100DMA
0.22
Negative
200DMA
0.28
Negative
Market Momentum
MACD
<0.01
Positive
RSI
47.27
Neutral
STOCH
6.22
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1413, the sentiment is Negative. The current price of 0.38 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.19, and above the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.27 is Neutral, neither overbought nor oversold. The STOCH value of 6.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1413.

Kwong Luen Engineering Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$1.79B3.9115.72%11.22%-12.79%-0.62%
67
Neutral
HK$45.27B5.2910.83%7.29%-14.20%-12.79%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
52
Neutral
HK$705.88M0.9231.00%5.49%-12.39%
48
Neutral
HK$100.86M-1.13-26.71%-51.29%43.87%
47
Neutral
HK$268.27M-0.30-31.01%7.32%-22.33%-203.23%
42
Neutral
HK$221.22M-1.10-15.28%5.18%13.50%-106.11%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1413
Kwong Luen Engineering Holdings Limited
0.21
-0.23
-52.42%
HK:0240
Build King Holdings
1.45
0.25
21.34%
HK:3311
China State Construction International Holdings
8.36
-1.55
-15.62%
HK:0896
Hanison Construction Holdings
0.25
-0.01
-3.85%
HK:0406
Yau Lee Holdings Limited
0.51
-0.22
-30.82%
HK:0610
Wai Kee Holdings Limited
0.91
0.20
27.46%

Kwong Luen Engineering Holdings Limited Corporate Events

FEG Holdings calls AGM and seeks new share issue mandate
Jul 31, 2026
FEG Holdings Corporation Limited has called an annual general meeting of shareholders to be held in Hong Kong on 27 August 2026. The meeting will consider approval of the audited financial statements for the year ended 31 March 2026, the re-electi...
FEG Holdings Narrows Losses but Revenue Halves Amid Heavy Impairments
Jun 30, 2026
FEG Holdings Corporation Limited reported a sharp drop in revenue to HK$197.3 million for the year ended 31 March 2026 from HK$405.0 million a year earlier, though its gross loss margin narrowed to 2.0% from 14.8%. Loss attributable to owners decr...
FEG Holdings Sets Board Meeting to Approve Annual Results and Consider Final Dividend
Jun 12, 2026
FEG Holdings Corporation Limited has scheduled a board meeting for 30 June 2026 to consider approval of its annual results for the year ended 31 March 2026 and to decide on a possible final dividend. The announcement signals an upcoming disclosure...
FEG Holdings Scraps Rights Issue After Xiamen Hotel Project Termination
Jun 3, 2026
FEG Holdings Corporation Limited has decided to cancel its planned rights issue after the termination of a key service agreement for an interior decoration and renovation project at the Yi&#8217;ao Hotel in Xiamen, China. The project, to be undert...
FEG Holdings Strengthens Board with Appointment of New Independent Director
May 29, 2026
FEG Holdings Corporation Limited has appointed 32-year-old legal specialist Gao Fan as an independent non-executive director, effective 29 May 2026, under a three-year appointment with an annual director&#8217;s fee of HK$120,000. Gao brings over ...
FEG Holdings sets out board lineup and key governance committee roles
May 29, 2026
FEG Holdings Corporation Limited has disclosed an updated list of its board members, naming Yang Yuangui and Yang Zhenwei as co-chairpersons among six executive directors, alongside five independent non-executive directors. The company also detail...
FEG Holdings Faces Nearly Half of Rights Issue Unsubscribed, Turns to Placing
May 27, 2026
FEG Holdings Corporation Limited reported that its ongoing rights issue, offered on the basis of one rights share for every two existing shares, received valid applications for about 51% of the total rights shares available. There were no non-qual...
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.Date of analysis: Aug 17, 2026