JBB Builders International Ltd. (1903) AI Stock Analysis

• Market Cap: HK$615.00M
• Dividend Yield: N/A
• Average Volume (3M): 146.87K
• Price to Earnings (P/E): 45.3
• Beta (1Y): -0.28
• Revenue Growth: 89.18%
• EPS Growth: N/A
• Country: HK
• Employees: 68
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 500,000,000
• 10 Day Avg. Volume: 167,200
• 30 Day Avg. Volume: 146,866
• PEG Ratio: 1.56
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.62
• 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

• Rating: 70 Neutral
• Price Target: HK$1.50 ▲(21.95%Upside)

JBB Builders International Ltd. receives a solid score driven by strong technical momentum and a robust balance sheet. However, the high P/E ratio suggests overvaluation, and there is room for improvement in operational efficiency and cash flow management. The absence of a dividend yield also impacts the valuation score.

JBB Builders International Ltd. Business Overview & Revenue Model

Company Description

JBB Builders International Limited, an engineering contractor, provides marine construction, and building and infrastructure services to contractors and developers in Malaysia and Singapore. The company offers land reclamation and related works, such as soil investigation, hydrographic survey, pre-reclamation design, sand handling/filling, ground treatment, sand surcharge removal work, and other related works; and marine civil works consisting of construction of jetty, channel-crossing works, maintenance dredging, and river diversion works. It also provides marine transportation services, which comprise transportation of marine sand, loading of marine sand extracted from the approved sand source onto sand carriers, and carriage and delivery of marine sand to designated sites where the marine sand is unloaded to be used for land reclamation. In addition, the company provides building and infrastructure services include general building works in construction of properties and infrastructure works. Further, it engages in the construction and trading of sand; and land based machinery works and rental activities. JBB Builders International Limited was founded in 2012 and is headquartered in Johor Bahru, Malaysia.

How the Company Makes Money

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JBB Builders International Ltd. Financial Statement Overview

Summary

JBB Builders International Ltd. has demonstrated significant revenue growth with improving profitability metrics. The balance sheet is robust with low debt levels, providing financial stability. However, there is room for operational efficiency improvements and the need to enhance cash conversion and profit margins.

Income Statement

JBB Builders International Ltd. shows a significant revenue increase from the previous year, with a Revenue Growth Rate of 51.2%. The Gross Profit Margin stands at 2.5%, indicating room for improvement in cost management. The Net Profit Margin has turned positive at 0.91%, reflecting improved profitability. However, the EBITDA Margin is relatively low at 1.42%, suggesting limited operating efficiency. The company has rebounded from negative EBIT and EBITDA in the previous year, showcasing a positive trajectory.

Balance Sheet

The company's Debt-to-Equity Ratio is low at 0.09, indicating prudent financial leverage. The Return on Equity is modest at 2.32%, pointing to a need for stronger profitability. The Equity Ratio is strong at 46.65%, suggesting a stable financial structure. Overall, the balance sheet reflects financial stability with low debt levels, providing a solid foundation for growth.

Cash Flow

JBB Builders International Ltd. shows a positive Free Cash Flow Growth Rate, shifting from a significant negative to less negative cash flow. The Operating Cash Flow to Net Income Ratio is low, suggesting potential inefficiencies in converting profits to cash. The Free Cash Flow to Net Income Ratio is also negative, indicating challenges in generating free cash relative to net income. Overall, cash flow improvements are needed for sustainable growth.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
426.85M	329.33M	217.78M	512.30M	141.04M	125.53M
	Gross Profit
13.86M	8.33M	12.29M	29.16M	6.68M	19.84M
	EBIT
8.90M	4.21M	-5.39M	18.49M	-9.45M	2.70M
	EBITDA
6.95M	4.68M	-4.99M	19.00M	-6.46M	7.05M
	Net Income Common Stockholders
7.58M	2.99M	-8.23M	12.53M	-9.42M	2.16M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
97.59M	94.09M	82.93M	91.22M	91.56M	80.97M
	Total Assets
289.10M	276.81M	218.87M	294.79M	269.87M	250.37M
	Total Debt
9.14M	11.18M	14.58M	14.17M	11.38M	1.29M
	Net Debt
-73.96M	-82.92M	-62.92M	-71.75M	-73.93M	-74.67M
	Total Liabilities
154.44M	140.46M	85.54M	155.53M	147.50M	114.41M
	Stockholders Equity
127.91M	129.15M	125.53M	129.97M	114.05M	125.59M
Cash Flow		Free Cash Flow
1.31M	-184.00K	-15.19M	-3.85M	3.50M	-28.27M
	Operating Cash Flow
1.97M	42.00K	-15.01M	-3.74M	3.79M	-28.09M
	Investing Cash Flow
13.57M	20.97M	4.55M	-1.07M	-1.98M	-6.14M
	Financing Cash Flow
-5.03M	-4.92M	-2.27M	2.21M	9.63M	-7.18M

JBB Builders International Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.23
• 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:1903, the sentiment is Positive. The current price of 1.23 is above the 20-day moving average (MA) of 1.14, above the 50-day MA of 1.11, and above the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.09 is Neutral, neither overbought nor oversold. The STOCH value of 73.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1903.

JBB Builders International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1903	70 Neutral	HK$615.00M	45.28	5.92%	―	89.18%	―
Sector *	66 Neutral	$4.44B	12.08	5.34%	5.82%	4.17%	-11.81%
CCOHF		$8.14B	7.64	14.62%	4.03%	―	―
ZCH		€81.97B	11.30	7.35%	6.30%	―	―
CRGGF		$6.15B	12.16	9.94%	0.81%	―	―
SNPMF		$90.47B	8.85		27.45%	―	―
3316	71 Outperform	HK$6.74B	11.38	36.29%	10.33%	25.93%	8.97%

JBB Builders International Ltd. Corporate Events

JBB Builders Revises Annual Cap for Connected Transactions

JBB Builders International Ltd. has announced a revision of the annual cap for its continuing connected transactions with Southern Diggers, related to remaining construction works. The revision is due to additional costs and re-measurement of quantities, with the new cap set for the year ending June 30, 2025. This adjustment reflects the company’s operational needs and compliance with the Listing Rules, impacting its financial reporting and stakeholder engagement.