China Leon Inspection Holding Limited (1586) AI Stock Analysis

• Market Cap: HK$1.65B
• Dividend Yield: 1.39%
• Average Volume (3M): 86.48K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 0.03
• Revenue Growth: 2.36%
• EPS Growth: -14.97%
• Country: HK
• Employees: 3,374
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 0.07
• Shares Outstanding: 587,736,800
• 10 Day Avg. Volume: 49,086
• 30 Day Avg. Volume: 86,481
• PEG Ratio: 0.00
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 9.24
• 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: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: HK$3.00 ▲(4.17% Upside)

The overall stock score of 67 reflects strong financial performance with consistent revenue growth and effective cash management as the most significant factors. Technical analysis indicates mixed short-term trends but a positive long-term outlook. Valuation metrics suggest the stock is fairly valued, with a modest dividend yield. The absence of earnings call data and corporate events does not impact the score.

China Leon Inspection Holding Limited Business Overview & Revenue Model

Company Description

China Leon Inspection Holding Limited, an investment holding company, provides services on inspection, testing, and certification businesses for the energy and commodity segments in Greater China, Singapore, and internationally. The company offers coal inspection and data, mineral inspection, petrochemical product inspection, climate change and sustainable development, power and energy, and leak detection and repair services, as well as integrated services in the field of ecological environment. It also provides standard and quality control technical services; inspection, testing, appraisal, and inspection technology development services; professional technical services; scientific research, technique, and business services; and environmental testing. China Leon Inspection Holding Limited was founded in 2009 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

The company generates revenue primarily through its inspection and testing services, which are billed on a per-project or contractual basis. Key revenue streams include fees for quality assurance assessments, safety inspections, and compliance testing across different industries. Additionally, China Leon Inspection Holding Limited may engage in long-term contracts with large enterprises or government entities, providing a stable income source. Strategic partnerships with other firms in related sectors can also enhance its service offerings and expand its client base, contributing positively to its earnings.

China Leon Inspection Holding Limited Financial Statement Overview

Summary

China Leon Inspection Holding Limited demonstrates solid financial health with consistent revenue growth and strong cash flow generation. While there is slight pressure on profit margins, the company has improved its leverage position and maintains strong returns on equity. Overall, the financials suggest a stable and growing company with effective cash management.

Income Statement

The company has shown consistent revenue growth over the years, with a 3.1% increase in the most recent year. Gross profit margin has slightly decreased from 42.9% to 40.8%, indicating some pressure on cost management. Net profit margin has also slightly decreased to 6.5%. However, the company maintains a stable EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved from 0.37 to 0.27, indicating better leverage management. Return on equity remains strong at 17.7%, showing effective use of shareholder funds. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Free cash flow has grown significantly by 41.5%, and the operating cash flow to net income ratio is strong at 0.85, indicating good cash conversion. The free cash flow to net income ratio is also healthy at 0.67, reflecting strong cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.25B	1.26B	1.12B	944.01M	818.83M	649.90M
Gross Profit	511.90M	515.15M	480.13M	409.37M	346.39M	277.07M
EBITDA	215.55M	240.39M	229.56M	201.06M	159.63M	144.98M
Net Income	72.64M	82.72M	80.05M	69.40M	49.84M	52.45M
Balance Sheet
Total Assets	966.67M	955.61M	894.53M	760.09M	666.13M	522.24M
Cash, Cash Equivalents and Short-Term Investments	243.28M	308.45M	268.18M	231.63M	159.31M	93.73M
Total Debt	153.19M	125.85M	158.80M	127.21M	126.23M	71.66M
Total Liabilities	328.32M	300.88M	325.26M	273.06M	239.53M	198.32M
Stockholders Equity	459.81M	468.50M	424.50M	378.27M	347.64M	297.57M
Cash Flow
Free Cash Flow	69.66M	136.60M	93.62M	126.69M	89.50M	69.96M
Operating Cash Flow	132.66M	203.64M	175.11M	176.37M	134.66M	115.43M
Investing Cash Flow	-22.12M	-61.46M	-120.06M	-47.05M	-62.93M	-39.16M
Financing Cash Flow	-31.06M	-92.96M	-40.07M	-36.97M	-18.50M	-71.64M

China Leon Inspection Holding Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1586, the sentiment is Positive. The current price of 2.88 is above the 20-day moving average (MA) of 2.79, above the 50-day MA of 2.82, and above the 200-day MA of 2.60, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.62 is Neutral, neither overbought nor oversold. The STOCH value of 75.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1586.

China Leon Inspection Holding Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1540	―	HK$214.43M	6.04	12.81%	18.60%	-7.56%	-2.06%
1127	―	HK$977.35M	4.69	14.20%	8.33%	-4.03%	8.61%
1586	―	HK$1.65B	22.01	15.68%	1.39%	2.36%	-14.97%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1975	―	HK$189.60M	―	-20.83%	8.86%	-26.30%	-617.37%
8385	―	HK$24.43M	―	―	―	-92.47%	14.17%

China Leon Inspection Holding Limited Corporate Events

China Leon Reports Decreased Profit Amid Rising Costs in H1 2025

China Leon Inspection Holding Limited announced its unaudited financial results for the first half of 2025, reporting a slight decrease in revenue to HK$602.8 million compared to the same period in 2024. Despite the revenue dip, the company faced increased expenses, resulting in a reduced profit of HK$55.3 million for the period, down from HK$79.9 million in the previous year, indicating challenges in maintaining profitability amidst rising costs.

China Leon Inspection Enhances Board Governance with Revised Nomination Committee Terms

China Leon Inspection Holding Limited has revised and adopted the terms of reference for its Nomination Committee, which is tasked with overseeing the structure, size, and composition of the Board of Directors. The committee is responsible for identifying qualified individuals for board membership, assessing the independence of non-executive directors, and making recommendations on director appointments and succession planning. This move is aimed at enhancing corporate governance and ensuring the Board’s alignment with the company’s strategic goals.

China Leon Inspection Announces Board Meeting for Interim Results

China Leon Inspection Holding Limited has announced a board meeting scheduled for August 28, 2025, to review and approve the interim results for the first half of the year ending June 30, 2025. The meeting will also consider the potential payment of an interim dividend, reflecting the company’s operational performance and financial health.

China Leon Suspends Share Buyback Amid Blackout Period

China Leon Inspection Holding Limited has announced the suspension of its share buy-back plan during the blackout period associated with the release of its unaudited financial results for the six months ending June 30, 2025. This decision reflects the company’s adherence to regulatory practices and indicates a cautious approach to its financial operations, with the buy-back mandate to be exercised only when deemed appropriate.