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Kwan On Holdings Ltd. (1559) AI Stock Analysis

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HK:1559

Kwan On Holdings Ltd.

(HKEX:1559)

Select Model
Rating:45Neutral
Price Target:HKD 0.04â–¼(-13.04% Downside)
Action:reiterated
Date:08/01/26

The score is held back primarily by weak financial performance: sustained losses, weakening revenue in the last two years, and renewed operating/free-cash burn. Technicals also point to a broader downtrend with the price below longer-term moving averages. The main positive is reduced leverage on the balance sheet, but valuation is difficult to assess meaningfully due to negative earnings and no dividend yield data.

Positive Factors
Lower LeverageThe sharp reduction in debt-to-equity materially lowers financial leverage and interest-related pressure compared with earlier years. This gives Kwan On a less debt-dependent capital structure and improves its ability to manage future project volatility, although losses still weigh on capital.
Negative Factors
Persistent Net LossesMulti-year net losses show that the business has not converted its contract activity into sustainable bottom-line earnings. Continued negative margins can erode equity and restrict internally funded investment, making a durable turnaround dependent on improved project economics and cost control.

Kwan On Holdings Ltd. (1559) vs. iShares MSCI Hong Kong ETF (EWH)

-50%-40%-30%-20%-10%0%10%20%30%HK:1559-37.84%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 112.94M
Dividend Yield
―
Average Volume (3M)
194.27K
Price to Earnings (P/E)
-1.0
Beta (1Y)
0.64
Revenue Growth
-9.47%
EPS Growth
39.22%
Country
Hong Kong
Employees
16
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

Kwan On Holdings Ltd. Business Overview & Revenue Model

Company Description

Kwan On Holdings Limited functions as an investment holding company with its core business activities centered on construction and property development, spanning both Hong Kong and international markets. The company's operations are divided into thre...

Kwan On Holdings Ltd. Financial Statement Overview

Summary

Overall fundamentals are weak. The income statement shows multi-year net losses (2021–2026) with deteriorating revenue in 2025–2026, while cash flow has turned negative again in 2025–2026 with operating and free-cash outflows. The main offset is a de-risked balance sheet, with debt-to-equity improving sharply to ~0.09 in 2026, but persistent losses and very negative ROE continue to erode equity.

Income Statement

18Very Negative

Balance Sheet

56Neutral

Cash Flow

32Negative
Financial statement breakdown
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue380.47M286.32M316.27M654.45M624.19M515.36M
Gross Profit18.13M22.05M3.78M-118.25M-31.59M-35.72M
EBITDA-28.02M-46.57M-52.86M-167.25M-87.30M-47.78M
Net Income-92.72M-59.06M-80.16M-155.40M-111.72M-67.97M
Balance Sheet
Total Assets123.49M123.49M196.05M650.74M854.54M808.94M
Cash, Cash Equivalents and Short-Term Investments25.73M25.73M20.73M26.54M47.62M149.35M
Total Debt7.10M7.10M7.66M88.46M181.03M250.48M
Total Liabilities72.49M72.49M152.98M517.14M514.88M382.80M
Stockholders Equity82.59M82.59M75.67M170.01M341.52M427.53M
Cash Flow
Free Cash Flow-42.44M-24.48M-10.19M30.68M-52.33M-19.14M
Operating Cash Flow-42.22M-24.17M-10.13M31.32M-49.01M-17.03M
Investing Cash Flow-11.12M-212.00K43.01M39.55M-14.61M2.71M
Financing Cash Flow-38.63M32.83M-46.06M-90.20M-29.22M-8.70M

Kwan On Holdings Ltd. Technical Analysis

Technical Analysis SentimentNeutral
Last Price0.05

Price Trends

50DMA0.05Positive
100DMA0.05Positive
200DMA0.06Negative

Market Momentum

MACD-0.00Negative
RSI61.98Neutral
STOCH108.33Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1559, the sentiment is Neutral. The current price of 0.05 is below the 20-day moving average (MA) of 0.05, below the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a neutral trend. The MACD of -0.00 indicates Negative momentum. The RSI at 61.98 is Neutral, neither overbought nor oversold. The STOCH value of 108.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1559.

Kwan On Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:1559 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:0385HK:038554NeutralHKD 141.59M-2.36-2.95%4.20%-24.47%-220.53%
HK:1413HK:141346NeutralHKD 102.34M-1.15-26.71%―-51.29%43.87%
HK:1559HK:155945NeutralHKD 126.71M-1.04-113.83%―-9.47%39.22%
HK:6816HK:681643NeutralHKD 161.60M-1.06848.01%―-25.29%7.74%
HK:1582HK:158242NeutralHKD 197.50M15.021.82%8.35%28.02%-68.80%
HK:1557HK:155740UnderperformHKD 201.60M-8.28-38.13%―-32.39%57.83%

* Industrials Sector Average

Performance Comparison

0%100%200%HK:1559HK:0385HK:1413HK:1557HK:1582HK:6816Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1559 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1559Kwan On Holdings Ltd.0.05-0.03-37.84%
HK:0385Chinney Alliance Group Limited0.24-0.13-36.02%
HK:1413Kwong Luen Engineering Holdings Limited0.21-0.20-48.77%
HK:1557K.H. Group Holdings Ltd.0.420.22111.06%
HK:1582CR Construction Group Holdings Limited0.400.011.28%
HK:6816Prosper Construction Holdings Limited0.200.001.00%

Kwan On Holdings Ltd. Corporate Events

Kwan On Holdings Secures Unanimous Shareholder Backing at 2026 AGM

Sep 17, 2026

Shareholders of Kwan On Holdings Ltd. approved all resolutions at the company’s 2026 annual general meeting held on 17 September 2026, with voting conducted by poll and overseen by Tricor Investor Services as scrutineer. The meeting confirmed t...

Kwan On Holdings Calls 2026 AGM to Approve Accounts, Board and Share Issuance Mandate

Aug 6, 2026

Kwan On Holdings Ltd. has convened its 2026 annual general meeting for 17 September 2026 in Hong Kong to seek shareholder approval of its audited financial statements for the year ended 31 March 2026 and the reappointment of Crowe (HK) CPA Limited as...

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: Aug 01, 2026