Kwan On Holdings Ltd. (1559) AI Stock Analysis

Kwan On Holdings Ltd.

(HKEX:1559)

Select Model

Rating:41Neutral

Price Target:HKD 0.04▼(-4.35% Downside)

Action:reiterated

Date:11/01/26

Weak financial performance with consistent losses and revenue erosion is the primary driver of the low score, followed by unfavorable technicals in a downtrend and poor valuation from negative earnings.

Positive Factors

Lower LeverageThe sharp reduction in debt relative to equity materially lowers balance-sheet leverage and financial risk. A less indebted capital structure should reduce funding pressure and preserve greater flexibility to manage project volatility, although profitability must still recover to rebuild capital.

Negative Factors

Persistent Net LossesMulti-year losses show that the business has not yet converted its construction activity into sustainable bottom-line profitability. Continued negative earnings can erode equity, restrict internally funded investment, and make recovery dependent on materially better project execution or margins.

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

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

Persistent net losses, volatile revenue declines to 286 million, eroding equity to 83 million, and inconsistent cash flows signal weak financial health and operational challenges.

Income Statement

15Very Negative

Balance Sheet

20Very Negative

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	380.47M	286.32M	316.27M	654.45M	624.19M	515.36M
Gross Profit	18.13M	22.05M	3.78M	-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 Assets	123.49M	123.49M	196.05M	650.74M	854.54M	808.94M
Cash, Cash Equivalents and Short-Term Investments	25.73M	25.73M	20.73M	26.54M	47.62M	149.35M
Total Debt	7.10M	7.10M	7.66M	88.46M	181.03M	250.48M
Total Liabilities	72.49M	72.49M	152.98M	517.14M	514.88M	382.80M
Stockholders Equity	82.59M	82.59M	75.67M	170.01M	341.52M	427.53M
Cash Flow
Free Cash Flow	-42.44M	-24.48M	-10.19M	30.68M	-52.33M	-19.14M
Operating Cash Flow	-42.22M	-24.17M	-10.13M	31.32M	-49.01M	-17.03M
Investing Cash Flow	-11.12M	-212.00K	43.01M	39.55M	-14.61M	2.71M
Financing Cash Flow	-38.63M	32.83M	-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
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:0385	54Neutral	HKD 141.59M	-2.36	-2.95%	4.20%	-24.47%	-220.53%
HK:1413	46Neutral	HKD 102.34M	-1.15	-26.71%	―	-51.29%	43.87%
HK:6816	43Neutral	HKD 161.60M	-1.06	848.01%	―	-25.29%	7.74%
HK:1582	42Neutral	HKD 197.50M	15.02	1.82%	8.35%	28.02%	-68.80%
HK:1559	41Neutral	HKD 126.71M	-1.04	-113.83%	―	-9.47%	39.22%
HK:1557	40Underperform	HKD 201.60M	-8.28	-38.13%	―	-32.39%	57.83%

* Industrials Sector Average

Performance Comparison

HK:1559 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:1559	Kwan On Holdings Ltd.	0.05	-0.03	-37.84%
HK:0385	Chinney Alliance Group Limited	0.24	-0.13	-36.02%
HK:1413	Kwong Luen Engineering Holdings Limited	0.21	-0.20	-48.77%
HK:1557	K.H. Group Holdings Ltd.	0.42	0.22	111.06%
HK:1582	CR Construction Group Holdings Limited	0.40	0.01	1.28%
HK:6816	Prosper Construction Holdings Limited	0.20	0.00	1.00%

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: Nov 01, 2026

Kwan On Holdings Ltd. AI Stock Analysis