C Cheng Holdings Ltd. (1486) AI Stock Analysis

• Market Cap: HK$91.23M
• Dividend Yield: N/A
• Average Volume (3M): 213.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: -11.66%
• EPS Growth: 53.18%
• Country: HK
• Employees: 615
• Sector: Industrials
• Sector Strength: 88
• Industry: Engineering & Construction
• EPS (TTM): >-0.01
• Shares Outstanding: 432,391,140
• 10 Day Avg. Volume: 360,458
• 30 Day Avg. Volume: 213,976
• PEG Ratio: -0.11
• Price to Book (P/B): 0.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

C Cheng Holdings Ltd. faces significant financial and operational challenges, including declining revenues, negative profitability, and poor cash flow generation. These issues are compounded by bearish technical indicators and a negative P/E ratio, reflecting ongoing losses and unattractive valuation. The absence of favorable corporate events or earnings call insights further diminishes the stock's appeal, resulting in a low overall score.

C Cheng Holdings Ltd. Business Overview & Revenue Model

Company Description

C Cheng Holdings Ltd. (1486) is a company primarily engaged in the provision of architecture and engineering consulting services. The company operates mainly in Hong Kong and Mainland China, offering a range of services including architectural design, landscape architecture, interior design, and various engineering services. C Cheng Holdings is known for its comprehensive approach to building and infrastructure projects, serving a diverse client base across different sectors such as residential, commercial, and public works.

How the Company Makes Money

C Cheng Holdings Ltd. generates revenue primarily through its architecture and engineering consulting services. The company earns fees from designing and managing construction projects, which include residential buildings, commercial spaces, and infrastructure developments. Key revenue streams include project design fees, project management fees, and consulting fees related to engineering services. Partnerships with construction firms, property developers, and government bodies play a significant role in securing projects and driving revenue growth. The company's reputation and portfolio of successful projects also contribute to its ability to attract new clients and retain existing ones.

C Cheng Holdings Ltd. Financial Statement Overview

Summary

C Cheng Holdings Ltd. demonstrates significant financial challenges, characterized by declining revenues, negative profitability, and cash flow issues. While the balance sheet shows a moderate debt level, the company faces substantial risks due to operational and cash flow difficulties.

Income Statement

C Cheng Holdings Ltd. has experienced declining revenues over recent years, with a significant drop from 2020 to 2024. The gross profit margin has decreased, indicating reduced efficiency in production. Negative EBIT and net income margins highlight ongoing profitability challenges, with consistent net losses over the past three years.

Balance Sheet

The company maintains a relatively stable equity base with a moderate debt-to-equity ratio. However, declining total assets and equity in recent years suggest potential financial instability. The equity ratio remains healthy, indicating a good proportion of assets financed by equity.

Cash Flow

C Cheng Holdings Ltd. has struggled with negative operating and free cash flows, indicating cash management issues. The lack of consistent positive cash flow generation poses a risk to liquidity and operational sustainability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
401.30M	454.25M	682.67M	861.99M	717.17M
	Gross Profit
62.24M	58.54M	108.43M	162.73M	133.35M
	EBIT
-13.34M	-33.48M	2.57M	18.43M	30.17M
	EBITDA
-6.52M	2.44M	18.59M	77.90M	85.41M
	Net Income Common Stockholders
-14.85M	-21.24M	-11.14M	4.50M	14.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
82.58M	97.11M	172.84M	215.33M	257.36M
	Total Assets
619.88M	683.20M	834.20M	903.52M	884.27M
	Total Debt
97.53M	118.84M	147.27M	183.75M	180.01M
	Net Debt
22.92M	28.74M	-13.60M	-14.38M	-48.41M
	Total Liabilities
220.82M	265.20M	328.58M	381.47M	391.19M
	Stockholders Equity
396.41M	415.77M	438.18M	468.91M	446.47M
Cash Flow		Free Cash Flow
0.00	-19.46M	-10.74M	-22.75M	73.14M
	Operating Cash Flow
0.00	-15.16M	148.00K	-4.20M	80.04M
	Investing Cash Flow
0.00	-87.33M	-7.08M	-5.57M	-28.00M
	Financing Cash Flow
0.00	-10.78M	-21.34M	-24.54M	-95.05M

C Cheng Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.21
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1486, the sentiment is Negative. The current price of 0.21 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.23, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.45 is Neutral, neither overbought nor oversold. The STOCH value of 17.32 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1486.

C Cheng Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
3311	71 Outperform	$58.84B	6.00	14.62%	6.94%	1.21%	2.15%
Sector *	64 Neutral	$4.39B	12.06	5.17%	249.63%	4.03%	-11.04%
6888	60 Neutral	HK$165.45M	30.55	0.75%	―	-65.39%	-62.93%
1486	45 Neutral	HK$91.23M	―	-3.66%	―	-11.66%	53.18%
1196	45 Neutral	€10.81B	―	-26.60%	―	-46.56%	-1256.77%
2383	36 Underperform	HK$1.88B	―		―	-4.77%	-15.54%

C Cheng Holdings Ltd. Corporate Events

C Cheng Holdings Delays Circular Dispatch for Major Transaction

C Cheng Holdings Limited, incorporated in the Cayman Islands, announced a delay in the dispatch of a circular related to a major transaction concerning the exercise of the Right of Use. The company had initially planned to send out the circular by April 30, 2025, but has requested an extension to May 30, 2025, due to the need for additional time to finalize certain information, such as the statement of indebtedness and working capital sufficiency. The Stock Exchange granted this waiver, allowing the company more time to prepare the necessary documentation.

C Cheng Holdings Announces Share Options Cancellation and Rights Issue

C Cheng Holdings Ltd. has announced the cancellation of 22,100,000 outstanding share options and proposed a rights issue to raise approximately HK$14.4 million. The proceeds will be used to develop the company’s business in the MENA region, enhance IT infrastructure with AI technology, and for general working capital. This strategic move is aimed at bolstering the company’s operations and market positioning, potentially benefiting stakeholders by improving project delivery and business development.

C Cheng Holdings Announces AGM and Register Closure

C Cheng Holdings Limited has announced the closure of its register of members from May 14 to May 20, 2025, in preparation for its annual general meeting (AGM). During this period, no share transfers will be registered. The AGM is scheduled for May 21, 2025, where shareholders will consider the approval of financial statements, re-election of directors, and re-appointment of auditors. Additionally, resolutions regarding the issuance of shares and related powers for directors will be discussed.

C Cheng Holdings Secures Major Property Use Agreement

C Cheng Holdings Ltd. announced a major transaction involving its subsidiary, C Cheng Investment, which has entered into a Property Use Agreement with C Cheng Future City. This agreement grants the right to use an entire office floor at no cost until 2071, significantly impacting the company’s asset portfolio. The transaction, valued at approximately RMB51.1 million, is classified as a major transaction under the Listing Rules, requiring shareholder approval, which has been obtained, thus exempting the need for a general meeting.

C Cheng Holdings Reports Decrease in Contracts and Revenue for 2024

C Cheng Holdings Limited announced its annual results for the year ended 31 December 2024, reporting a significant decrease in total new and supplementary contracts by 41.1% and a 14.0% reduction in remaining contract sums from continuing operations. The company’s revenue from continuing operations fell by 11.7%, and it reported a loss of HK$14,419,000, an improvement from the previous year’s loss. Despite the financial challenges, the company managed to reduce its overall loss, although no final dividend was proposed.

C Cheng Holdings to Review Annual Results and Dividend Proposal

C Cheng Holdings Limited has announced that its board of directors will hold a meeting on March 26, 2025, to consider and approve the company’s annual results for the year ended December 31, 2024. The meeting will also discuss the recommendation of a final dividend and other business matters, which could impact the company’s financial strategy and stakeholder interests.