SFK Construction Holdings Ltd. (1447) AI Stock Analysis

• Market Cap: HK$192.00M
• Dividend Yield: 14.58%
• Average Volume (3M): 40.27K
• Price to Earnings (P/E): 7.9
• Beta (1Y): -0.01
• Revenue Growth: 13.59%
• EPS Growth: -12.52%
• Country: HK
• Employees: 1,063
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.02
• Shares Outstanding: 400,000,000
• 10 Day Avg. Volume: 15,600
• 30 Day Avg. Volume: 40,266
• PEG Ratio: 0.88
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.05
• P/FCF Ratio: -1.43
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$0.50
• Price Target Upside: 4.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: HK$0.50 ▲(4.17% Upside)

The stock's overall score is primarily influenced by its strong valuation, with an attractive P/E ratio and high dividend yield. However, financial performance is moderate due to cash flow challenges and operational inefficiencies. Technical analysis indicates bearish momentum, which is a significant risk factor.

SFK Construction Holdings Ltd. Business Overview & Revenue Model

Company Description

SFK Construction Holdings Limited, an investment holding company, engages in the construction and maintenance of building and civil engineering projects primarily in Hong Kong. It operates through three segments: General Building, Civil Engineering, and Others. The company undertakes construction projects in Macau under the SFK brand. It also offers engineering services for substructure or superstructure of building structures and infrastructure facilities; and maintenance, repair, addition, and alteration services to building structures and infrastructure facilities, as well as undertakes road construction works. In addition, the company provides housing and property management services, such as cleaning and security management, fresh water and flush water maintenance, sewage water sampling, electrical and mechanical engineering, and building information modeling, as well as consultancy services. It serves customers in the public and private sectors. The company was incorporated in 2007 and is headquartered in Kwai Chung, Hong Kong. SFK Construction Holdings Limited is a subsidiary of Sun Fook Kong Group Limited.

How the Company Makes Money

SFK Construction Holdings Ltd. generates revenue primarily through its construction contracts, which encompass a wide range of projects from residential buildings to large-scale infrastructure initiatives. The company's revenue model is based on fixed-price contracts, cost-plus contracts, and time and materials agreements, allowing for flexibility in pricing based on project scope and requirements. Key revenue streams include project execution fees, management and consultancy services, and ongoing maintenance contracts. Additionally, SFK Construction Holdings Ltd. may benefit from strategic partnerships with suppliers and subcontractors, enhancing its operational efficiency and cost-effectiveness, which in turn contributes to its profitability.

SFK Construction Holdings Ltd. Financial Statement Overview

Summary

SFK Construction Holdings Ltd. shows strong revenue growth and improving profitability metrics, but faces challenges in cash flow stability and operational efficiency. The balance sheet is stable, yet declining asset levels could impede future growth.

Income Statement

The company has shown consistent revenue growth, with a significant increase of 19.67% from 2023 to 2024. Gross profit margin improved slightly, indicating better cost management. However, both EBIT and EBITDA margins are relatively low, suggesting room for operational efficiency improvements. Net profit margin remains modest, highlighting some profitability challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, suggesting a balanced approach to leveraging. Return on equity has improved, reflecting better utilization of shareholder funds. The equity ratio is stable, indicating a solid equity base relative to total assets. However, the decrease in total assets over the years could be a concern for future growth.

Cash Flow

Cash flow from operations has been volatile, with negative figures in recent years, potentially affecting liquidity. Free cash flow growth is not calculable due to frequent negative values, raising concerns about sustainability. The operating cash flow to net income ratio is not available, limiting insights into cash generation efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.61B	3.85B	3.67B	3.62B	3.77B
Gross Profit	101.19M	97.90M	77.41M	85.71M	-39.92M
EBITDA	71.07M	63.16M	76.51M	67.53M	10.55M
Net Income	27.77M	25.32M	18.73M	17.43M	-18.97M
Balance Sheet
Total Assets	1.64B	1.94B	1.62B	1.80B	2.15B
Cash, Cash Equivalents and Short-Term Investments	194.97M	348.96M	262.56M	236.84M	449.83M
Total Debt	326.09M	270.49M	75.28M	116.60M	267.78M
Total Liabilities	1.27B	1.57B	1.24B	1.43B	1.75B
Stockholders Equity	370.91M	371.14M	371.82M	375.09M	397.66M
Cash Flow
Free Cash Flow	-165.00M	-58.95M	96.58M	-30.04M	490.75M
Operating Cash Flow	-159.67M	-53.47M	104.99M	-18.31M	493.11M
Investing Cash Flow	6.49M	-2.12M	-6.13M	-6.79M	-1.02M
Financing Cash Flow	-2.75M	141.90M	-72.99M	-188.04M	-306.31M

SFK Construction Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1447, the sentiment is Negative. The current price of 0.48 is below the 20-day moving average (MA) of 0.50, below the 50-day MA of 0.53, and below the 200-day MA of 0.54, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 31.77 is Neutral, neither overbought nor oversold. The STOCH value of 12.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1447.

SFK Construction Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1447	62 Neutral	HK$192.00M	7.89	6.66%	14.58%	13.59%	-12.52%
1582	61 Neutral	HK$185.00M	4.39	6.32%	8.92%	27.42%	-32.34%
1547	54 Neutral	HK$196.00M	23.33	5.05%	2.04%	-37.64%	2525.00%
6182	54 Neutral	HK$512.00M	393.75	1.41%	―	102.05%	―
1865	43 Neutral	HK$184.18M	―	-17.97%	―	-0.02%	13.79%

SFK Construction Holdings Ltd. Corporate Events

SFK Construction Holdings Ltd. Announces AGM and Key Resolutions

SFK Construction Holdings Ltd. has announced its Annual General Meeting (AGM) scheduled for May 22, 2025, where shareholders will consider various resolutions. These include adopting financial statements, re-electing directors, authorizing director remuneration, re-appointing auditors, and declaring a final dividend. Additionally, a mandate will be discussed to allow directors to issue shares, potentially impacting the company’s capital structure and market activities.

SFK Construction Holdings Reports Increased Revenue and Profit for 2024

SFK Construction Holdings Ltd. announced its annual results for the year ended 31 December 2024, reporting a revenue increase to HKD 4.61 billion from HKD 3.85 billion in 2023. Despite higher finance costs, the company achieved a profit of HKD 27.95 million, up from HKD 25.74 million in the previous year, indicating a stable financial performance and potential positive implications for stakeholders.

SFK Construction Holdings Ltd. Announces Final Dividend for 2024

SFK Construction Holdings Ltd. has announced a final ordinary cash dividend of HKD 0.04 per share for the financial year ending 31 December 2024. This announcement reflects the company’s financial health and commitment to returning value to its shareholders. The ex-dividend date is set for 30 May 2025, with payment scheduled for 20 June 2025, indicating a stable financial outlook and reinforcing its market position.