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Chuan Holdings Limited (1420) AI Stock Analysis

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HK:1420

Chuan Holdings Limited

(HKEX:1420)

Select Model
Rating:72Outperform
Price Target:HKD 0.31â–²(11.07% Upside)
Action:reiterated
Date:10/24/26

The score is driven primarily by improving fundamentals—strong 2025 growth and margin expansion with a generally manageable balance sheet—partly offset by weaker 2025 cash conversion and cash-flow volatility. Technically, indicators are mostly neutral/sideways, while valuation is a major positive due to the very low P/E.

Positive Factors
Revenue and Margin RecoveryThe sharp 2025 rebound in revenue and profitability indicates stronger project activity and improved execution economics. Higher gross, EBIT, and net margins provide more capacity to absorb cost pressures, reinvest in operations, and build earnings over the next several quarters.
Negative Factors
Weaker Cash ConversionThe decline in free cash flow and reduced coverage of reported earnings show that profit is not converting into cash as efficiently as before. Persistent working-capital or reinvestment demands could constrain funding flexibility and make earnings quality less predictable.

Chuan Holdings Limited (1420) vs. iShares MSCI Hong Kong ETF (EWH)

-20%0%20%40%60%80%HK:1420+57.30%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 375.94M
Dividend Yield
―
Average Volume (3M)
534.72K
Price to Earnings (P/E)
1.6
Beta (1Y)
0.12
Revenue Growth
87.74%
EPS Growth
208.27%
Country
Hong Kong
Employees
819
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

Chuan Holdings Limited Business Overview & Revenue Model

Company Description

Chuan Holdings Limited operates as an investment holding company, delivering a range of earthmoving and associated services, as well as comprehensive general construction projects, across Singapore. Its earthworks capabilities span land clearing, dem...

How the Company Makes Money

Chuan Holdings Limited makes money primarily by undertaking construction projects as a contractor and recognizing revenue from customer contracts for construction and civil engineering works. Key revenue streams typically include (i) project-based co...

Chuan Holdings Limited Financial Statement Overview

Summary

Income statement strength (Score 78) shows a material rebound with ~31% revenue growth and sharply improved margins in 2025, supported by manageable leverage and improving ROE on the balance sheet (Score 74). The key drag is cash-flow quality (Cash Flow Score 61): free cash flow fell ~42% in 2025 and covered only ~63% of net income, highlighting weaker cash conversion and some volatility through the cycle.

Income Statement

78Positive

Balance Sheet

74Positive

Cash Flow

61Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue245.66M167.58M143.75M120.83M88.61M85.42M
Gross Profit57.75M35.22M18.96M8.59M6.20M4.34M
EBITDA56.28M35.55M18.95M11.22M6.82M11.52M
Net Income36.11M18.69M8.14M3.25M1.72M1.50M
Balance Sheet
Total Assets274.26M215.19M191.50M121.69M110.53M111.84M
Cash, Cash Equivalents and Short-Term Investments54.45M27.44M33.65M31.81M23.44M34.43M
Total Debt40.41M41.42M52.10M8.74M7.15M11.43M
Total Liabilities127.75M93.02M88.35M29.60M21.75M25.33M
Stockholders Equity146.51M122.17M103.15M92.09M88.78M86.51M
Cash Flow
Free Cash Flow47.12M13.19M25.65M16.11M-520.00K1.55M
Operating Cash Flow54.97M20.97M28.78M22.47M1.14M5.62M
Investing Cash Flow-7.66M-4.20M-43.04M-11.03M-3.29M-15.07M
Financing Cash Flow-21.39M-21.79M15.45M-4.64M-5.92M-5.89M

Chuan Holdings Limited Technical Analysis

Technical Analysis SentimentPositive
Last Price0.28

Price Trends

50DMA0.25Positive
100DMA0.23Positive
200DMA0.24Positive

Market Momentum

MACD0.00Negative
RSI59.23Neutral
STOCH53.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1420, the sentiment is Positive. The current price of 0.28 is above the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.25, and above the 200-day MA of 0.24, indicating a bullish trend. The MACD of 0.00 indicates Negative momentum. The RSI at 59.23 is Neutral, neither overbought nor oversold. The STOCH value of 53.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1420.

Chuan Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:1420 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:1420HK:142072OutperformHKD 375.94M1.6226.88%―87.74%208.27%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:1903HK:190348NeutralHKD 992.50M-935.39-0.44%―4.76%-144.68%
HK:0896HK:089647NeutralHKD 316.56M-0.35-31.01%―-22.33%-203.23%
HK:1413HK:141346NeutralHKD 102.34M-1.15-26.71%―-51.29%43.87%
HK:8305HK:830540UnderperformHKD 228.70M-6.75-25.65%―25.67%-271.05%
HK:1447HK:144738UnderperformHKD 224.00M9.526.28%3.57%-5.52%-3.29%

* Industrials Sector Average

Performance Comparison

-50%0%50%HK:1420HK:0896HK:1413HK:1447HK:1903HK:8305Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1420 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1420Chuan Holdings Limited0.280.1055.56%
HK:0896Hanison Construction Holdings 0.290.0519.43%
HK:1413Kwong Luen Engineering Holdings Limited0.21-0.20-48.77%
HK:1447SFK Construction Holdings Ltd.0.560.1021.21%
HK:1903JBB Builders International Ltd.1.990.2010.89%
HK:8305Tong Kee (Holding) Ltd.0.14-0.42-74.82%

Chuan Holdings Limited Corporate Events

Chuan Holdings Interim Profit Surges on Strong Revenue Growth

Aug 31, 2026

Chuan Holdings Limited reported a sharp improvement in interim performance for the six months ended 30 June 2026, with revenue climbing to S$136.3 million from S$54.9 million a year earlier and gross profit rising to S$35.6 million. The Group’s...

Chuan Holdings Wins Listing Rules Waiver for Major Transaction Circular

Aug 24, 2026

Chuan Holdings Limited, a Cayman-incorporated company listed in Hong Kong under stock code 1420, announced that it has received a waiver from strict compliance with Rule 14.41(a) of the Listing Rules. The board, led by Chairman and Executive Director...

Chuan Holdings Reclassifies Redevelopment Financing as Major Transaction Under HK Rules

Aug 19, 2026

Chuan Holdings Limited has issued a clarification on how a series of shareholder loans to its associate, Chuan Investments, for a Redevelopment Project should be treated under Hong Kong Listing Rules. The loans, provided mainly by Longlands on an uns...

Chuan Holdings Sets Board Meeting to Approve 2026 Interim Results and Consider Dividend

Aug 17, 2026

Chuan Holdings Limited has scheduled a board meeting for 31 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider whether to declare an interim dividend, a decision that could signal...

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: Oct 24, 2026