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Kwong Luen Engineering Holdings Limited (1413) AI Stock Analysis

HK:1413

Kwong Luen Engineering Holdings Limited

(HKEX:1413)

Select Model
Rating:44Neutral
Price Target:HKD 0.20â–¼(-1.46% Downside)
Action:reiterated
Date:09/09/26

The overall score is very low, driven primarily by severe financial distress. The company is unprofitable, burning cash, and shrinking. While the balance sheet has low debt, equity is eroding. Short-term technicals show a minor bounce, but this does not offset the fundamental risks. The negative P/E and lack of dividend further detract from the investment case.

Positive Factors
Low leverageConservative leverage reduces balance-sheet risk and preserves financial flexibility through a difficult operating period. A relatively low debt burden may give management more capacity to absorb project volatility, support required investment, and pursue recovery without immediate pressure from heavy financing obligations.
Negative Factors
Deep profitability deteriorationNegative gross profit means recent projects have not covered their direct delivery costs, making the deterioration more serious than ordinary earnings softness. Continued margin pressure can erode equity, reduce reinvestment capacity, and weaken the company’s ability to compete for future work.

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

-80%-60%-40%-20%0%20%HK:1413-48.77%EWH+8.05%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 57.47M
Dividend Yield
―
Average Volume (3M)
725.20K
Price to Earnings (P/E)
-1.1
Beta (1Y)
-0.15
Revenue Growth
-51.29%
EPS Growth
43.87%
Country
Hong Kong
Employees
63
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

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 cons...

How the Company Makes Money

The company primarily makes money by delivering construction and engineering projects under contracted arrangements and recognizing revenue for works performed. Key revenue typically comes from (1) main contracting revenue for building construction p...

Kwong Luen Engineering Holdings Limited Financial Statement Overview

Summary

Financial health is critically weak. Revenue fell 51% YoY, gross profit is negative, and net losses persist. Cash flow is deeply negative, with operating cash outflows in five of six years. The only positive is minimal debt (D/E 0.02), but equity is eroding quickly.

Income Statement

18Very Negative

Balance Sheet

38Negative

Cash Flow

12Very Negative
Financial statement breakdown
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2022
Income Statement
Total Revenue197.27M197.27M404.95M618.19M548.84M338.32M
Gross Profit-6.54M-3.89M-59.95M34.76M46.17M11.91M
EBITDA-25.46M-27.91M-72.67M36.90M50.80M13.93M
Net Income-54.51M-54.53M-81.52M17.26M23.52M1.00M
Balance Sheet
Total Assets274.13M274.13M298.61M381.17M310.07M292.71M
Cash, Cash Equivalents and Short-Term Investments33.27M33.27M33.92M25.15M42.65M25.36M
Total Debt4.13M4.13M5.58M31.07M23.72M3.13M
Total Liabilities65.62M65.62M66.76M114.79M61.95M43.59M
Stockholders Equity198.93M198.93M221.87M266.38M248.12M249.12M
Cash Flow
Free Cash Flow-29.45M-29.45M-18.28M-37.95M-68.92M-1.75M
Operating Cash Flow-16.89M-16.89M-11.48M-29.47M-27.67M10.00M
Investing Cash Flow-12.54M-12.54M8.24M2.67M-41.26M-6.69M
Financing Cash Flow28.74M28.74M12.01M26.59M3.92M-20.59M

Kwong Luen Engineering Holdings Limited Technical Analysis

Technical Analysis SentimentPositive
Last Price0.20

Price Trends

50DMA0.21Negative
100DMA0.20Positive
200DMA0.25Negative

Market Momentum

MACD-0.00Negative
RSI51.26Neutral
STOCH100.00Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1413, the sentiment is Positive. The current price of 0.20 is below the 20-day moving average (MA) of 0.21, below the 50-day MA of 0.21, and below the 200-day MA of 0.25, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 51.26 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 HK:1413.

Kwong Luen Engineering Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:1413 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0240HK:024084OutperformHKD 1.73B3.7615.72%12.19%-12.79%-0.62%
HK:3311HK:331174OutperformHKD 45.85B5.3610.83%7.08%-14.20%-12.79%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:0610HK:061054NeutralHKD 725.71M0.9431.00%―-12.39%―
HK:0896HK:089647NeutralHKD 316.56M-0.35-31.01%―-22.33%-203.23%
HK:1413HK:141344NeutralHKD 102.34M-1.15-26.71%―-51.29%43.87%
HK:0406HK:040634UnderperformHKD 216.84M-1.07-15.28%―13.50%-106.11%

* Industrials Sector Average

Performance Comparison

-60%-40%-20%0%20%HK:1413HK:0240HK:3311HK:0896HK:0406HK:0610Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1413 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1413Kwong Luen Engineering Holdings Limited0.21-0.20-48.77%
HK:0240Build King Holdings1.390.042.89%
HK:3311China State Construction International Holdings 8.680.192.19%
HK:0896Hanison Construction Holdings 0.290.0519.43%
HK:0406Yau Lee Holdings Limited0.49-0.20-29.29%
HK:0610Wai Kee Holdings Limited0.920.1620.39%

Kwong Luen Engineering Holdings Limited Corporate Events

FEG Holdings Revamps Board With New Executive and Non-Executive Directors

Oct 21, 2026

FEG Holdings Corporation Limited, incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, maintains a conventional governance structure comprising executive, non-executive and independent non-executive directors. Its board and...

FEG Holdings Sets Out Board and Committee Structure

Oct 21, 2026

FEG Holdings Corporation Limited has detailed the composition of its board, led by co-chairpersons Yang Yuangui and Yang Zhenwei, alongside executive, non-executive and independent non-executive directors. The announcement underscores the company&#82...

FEG Holdings Corrects Vote Count for Director Re-Election at 2026 AGM

Oct 2, 2026

FEG Holdings Corporation Limited has issued a clarification regarding the poll results from its 2026 annual general meeting, specifically correcting the number of votes cast in favour of the resolution to re-elect executive director Ms. Yang. The vot...

FEG Holdings AGM Confirms Mandates and Auditor as Shareholders Reshape Board

Aug 27, 2026

FEG Holdings Corporation Limited reported the poll results of its 2026 annual general meeting, where shareholders approved the adoption of the audited financial statements, reappointment of Infinity CPA Limited as auditor, and general mandates for th...

FEG Holdings Sets Out Board and Committee Structure

Aug 27, 2026

FEG Holdings Corporation Limited has announced the current composition of its board of directors, naming co-chairpersons Yang Yuangui and Yang Zhenwei among the executive directors, alongside a slate of independent non-executive directors. The compan...

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: Sep 09, 2026