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China Leon Inspection Holding Limited (HK:1586)
:1586
Hong Kong Market
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China Leon Inspection Holding Limited (1586) AI Stock Analysis

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HK:1586

China Leon Inspection Holding Limited

(1586)

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Neutral 49 (OpenAI - Gpt-5.6Sol)
Rating:49Neutral
Price Target:
HK$1.50
▲(11.11% Upside)
Action:Reiterated
Date:08/28/26
The score is held back primarily by deteriorating fundamentals—especially the sharp drop in operating cash flow and negative free cash flow—alongside meaningful margin and ROE compression. Technicals add further downside pressure with the price below key moving averages and a negative MACD. Valuation is neutral-to-moderate (P/E ~19.5) and does not offset the financial and momentum weakness.
Positive Factors
Essential third-party inspection and testing model
The company supports trading, storage, transportation, and processing workflows where independent quality and quantity verification is required. This service-based model can remain relevant across commodity cycles because custody-transfer and compliance processes continue to require testing.
Negative Factors
Revenue decline and severe margin compression
The simultaneous revenue contraction and sharp profitability decline point to weaker demand, pricing, cost, or service-mix economics. If persistent, lower operating leverage could constrain earnings growth and reduce the funds available for reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Essential third-party inspection and testing model
The company supports trading, storage, transportation, and processing workflows where independent quality and quantity verification is required. This service-based model can remain relevant across commodity cycles because custody-transfer and compliance processes continue to require testing.
Read all positive factors

China Leon Inspection Holding Limited (1586) vs. iShares MSCI Hong Kong ETF (EWH)

China Leon Inspection Holding Limited Business Overview & Revenue Model

Company Description
China Leon Inspection Holding Limited operates as an investment holding entity, providing comprehensive inspection, testing, and certification (ITC) solutions, with a primary focus on the energy and commodity industries. Its operational reach exte...
How the Company Makes Money
The company makes money primarily by charging service fees for third-party inspection and testing work performed for customers in commodity and industrial supply chains. Key revenue streams generally come from (i) inspection and surveying services...

China Leon Inspection Holding Limited Financial Statement Overview

Summary
Financial performance weakened materially in the latest year: revenue declined (2025: -3.9%), profitability compressed sharply (net margin ~2.9% vs ~6.5% in 2024), and returns fell (ROE ~8.6% vs ~17.7%). The balance sheet is still reasonably supported (moderate leverage with debt-to-equity ~0.47), but cash generation is the key concern with operating cash flow dropping to ~49m (from ~204m) and free cash flow turning negative (~-17.6m).
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
34
Negative
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.25B1.21B1.19B1.01B828.94M668.17M
Gross Profit429.57M407.87M483.83M434.79M359.46M282.66M
EBITDA144.95M127.43M225.77M207.89M176.55M130.26M
Net Income37.36M34.80M77.70M72.49M60.94M40.67M
Balance Sheet
Total Assets864.09M917.84M897.51M810.07M667.43M543.57M
Cash, Cash Equivalents and Short-Term Investments184.07M223.92M289.69M242.85M203.39M150.64M
Total Debt158.69M189.49M118.20M143.80M111.70M103.01M
Total Liabilities289.52M361.55M282.59M294.54M239.78M195.46M
Stockholders Equity428.88M402.37M440.02M384.42M332.16M283.68M
Cash Flow
Free Cash Flow-17.57M-17.57M128.29M84.78M111.24M73.03M
Operating Cash Flow49.33M49.33M191.26M158.57M154.87M109.89M
Investing Cash Flow-119.59M-119.59M-57.73M-108.72M-41.31M-51.35M
Financing Cash Flow3.83M3.83M-87.30M-36.29M-32.46M-15.09M

China Leon Inspection Holding Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.35
Price Trends
50DMA
1.66
Negative
100DMA
1.62
Negative
200DMA
1.81
Negative
Market Momentum
MACD
-0.10
Positive
RSI
32.30
Neutral
STOCH
57.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1586, the sentiment is Negative. The current price of 1.35 is below the 20-day moving average (MA) of 1.54, below the 50-day MA of 1.66, and below the 200-day MA of 1.81, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 32.30 is Neutral, neither overbought nor oversold. The STOCH value of 57.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1586.

China Leon Inspection Holding Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$331.62M12.069.67%4.35%4.00%-31.04%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
HK$63.25M-22.86-1.20%3.53%-6.24%56.25%
51
Neutral
HK$621.60M-6.81-3.47%16.26%4.37%-4.14%
50
Neutral
HK$150.70M88.4115.23%10.01%164.52%
49
Neutral
HK$768.49M18.838.99%3.06%13.24%-42.14%
44
Neutral
HK$220.80M-2.76-23.30%9.76%-3.83%-698.65%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1586
China Leon Inspection Holding Limited
1.40
-1.38
-49.64%
HK:0450
Hung Hing Printing Group Limited
0.69
-0.16
-18.93%
HK:1540
Left Field Printing Group Ltd.
0.69
0.29
70.79%
HK:1884
eprint Group Ltd.
0.11
>-0.01
-4.27%
HK:1975
Sun Hing Printing Holdings Limited
0.49
0.16
46.71%
HK:8448
Universe Printshop Holdings Ltd.
1.45
1.24
607.32%

China Leon Inspection Holding Limited Corporate Events

China Leon Inspection Delivers Double-Digit Interim Revenue and Profit Growth
Aug 21, 2026
China Leon Inspection Holding Limited, a Hong Kong-listed inspection and testing services provider, reported solid growth in its latest interim period. The group offers industrial and commercial quality control and certification services, generati...
China Leon Inspection Schedules Board Meeting to Approve Interim Results and Consider Dividend
Aug 11, 2026
China Leon Inspection Holding Limited has scheduled a board meeting for 21 August 2026 to review and approve the interim results for the six months ended 30 June 2026. The board will also consider the potential declaration of an interim dividend, ...
China Leon Inspection Shareholders Back Board, Auditor and Capital Mandates at AGM
Jun 30, 2026
Shareholders of China Leon Inspection Holding Limited approved all resolutions at the annual general meeting held on 30 June 2026, with poll voting showing near-unanimous support across the agenda. The meeting confirmed the 2025 financial statemen...
China Leon Inspection Moves to Modernize Governance with New Articles
Jun 8, 2026
China Leon Inspection Holding Limited’s board has proposed adopting a third amended and restated memorandum and articles of association to replace its current constitutional documents. The overhaul is intended to modernize governance, partic...
China Leon Inspection Sets 2026 AGM to Approve Board, Auditor and Share Buyback Mandate
Jun 8, 2026
China Leon Inspection Holding Limited has called its annual general meeting for 30 June 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements and the reports of the board and external auditor for the year ...
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 28, 2026