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Kwong Luen Engineering Holdings Limited (1413) AI Stock Analysis

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HK:1413

Kwong Luen Engineering Holdings Limited

(HKEX:1413)

Select Model
Rating:45Neutral
Price Target:HKD 0.21â–¼(-2.33% Downside)
Action:reiterated
Date:09/09/26

The score is primarily held back by weak financial performance, driven by recent deep losses, negative gross profit, and persistently negative operating/free cash flow, despite a relatively low-debt balance sheet. Technical indicators provide some near-term support (positive MACD, price above shorter moving averages), but longer-term trend remains weak versus the 200-day average. Valuation contributes negatively due to a loss-driven negative P/E and no dividend yield data.

Positive Factors
Conservative LeverageLow debt relative to equity gives the company greater financial flexibility while it works through earnings volatility. A comparatively conservative balance sheet can reduce solvency pressure, preserve access to funding, and provide more capacity to manage the construction cycle than a highly leveraged structure.
Negative Factors
Deep Profitability DeteriorationNegative gross profit and deep net losses indicate that recent projects are not generating sufficient returns after direct costs. If contract margin pressure persists, earnings can remain impaired, weaken shareholder returns, and erode the equity base despite the company’s relatively low leverage.

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

-80%-60%-40%-20%0%20%HK:1413-50.80%EWH+8.17%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
HKD 59.40M
Dividend Yield
―
Average Volume (3M)
1.09M
Price to Earnings (P/E)
-1.2
Beta (1Y)
-0.21
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

FEG Holdings Corporation 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 constructio...

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 performance is weak: profitability deteriorated sharply with deep losses and negative gross profit in the latest periods, and operating/free cash flow has been persistently negative. The main offsetting positive is a comparatively conservative balance sheet with low leverage, which provides some cushion despite equity erosion from losses.

Income Statement

22Negative

Balance Sheet

63Positive

Cash Flow

28Negative
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 Price0.21

Price Trends

50DMA0.21Positive
100DMA0.20Positive
200DMA0.24Negative

Market Momentum

MACD0.00Negative
RSI55.30Neutral
STOCH56.26Neutral

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 0.21 is above the 20-day moving average (MA) of 0.21, above the 50-day MA of 0.21, and below the 200-day MA of 0.24, indicating a neutral trend. The MACD of 0.00 indicates Negative momentum. The RSI at 55.30 is Neutral, neither overbought nor oversold. The STOCH value of 56.26 is Neutral, 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:3311HK:331172OutperformHKD 45.98B5.3710.83%7.06%-14.20%-12.79%
HK:0240HK:024064NeutralHKD 1.78B3.8615.72%11.85%-12.79%-0.62%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:0610HK:061050NeutralHKD 717.78M0.9331.00%―-12.39%―
HK:0896HK:089647NeutralHKD 305.83M-0.34-31.01%―-10.91%-87.84%
HK:1413HK:141345NeutralHKD 105.78M-1.19-26.71%―-51.29%43.87%
HK:0406HK:040639UnderperformHKD 197.12M-0.98-15.28%―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 '26Nov '26
HK:1413 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1413Kwong Luen Engineering Holdings Limited0.21-0.24-53.16%
HK:0240Build King Holdings1.430.021.13%
HK:3311China State Construction International Holdings 8.71-0.21-2.31%
HK:0896Hanison Construction Holdings 0.280.0519.25%
HK:0406Yau Lee Holdings Limited0.45-0.25-35.71%
HK:0610Wai Kee Holdings Limited0.91-0.03-2.69%

Kwong Luen Engineering Holdings Limited Corporate Events

FEG Holdings Reshapes Board After Director Removals

Nov 8, 2026

FEG Holdings Corporation Limited announced that Yang Yuangui and Li Yujia were removed as executive directors and Gao Fan as an independent non-executive director, effective November 6, 2026. The board attributed the decision to prolonged disagreemen...

FEG Holdings Sets Out Board and Committee Memberships

Nov 8, 2026

FEG Holdings Corporation Limited disclosed its board composition, comprising three executive directors, two non-executive directors and five independent non-executive directors. The company also identified membership of its audit, nomination and remu...

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’s f...

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