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Sam Woo Construction Group Ltd. (3822) AI Stock Analysis

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HK:3822

Sam Woo Construction Group Ltd.

(HKEX:3822)

Select Model
Rating:74Outperform
Price Target:HKD 1.50â–²(36.99% Upside)
Action:reiterated
Date:09/29/26

The score is driven primarily by the 2026 financial turnaround (profitability and cash flow rebound alongside improving leverage) and very attractive valuation metrics (low P/E and high dividend yield). Technicals are supportive but not strongly momentum-driven, keeping the overall score from being higher.

Positive Factors
Profitability turnaroundThe return to positive net and operating margins after several loss-making years indicates materially improved project economics and execution. If maintained, stronger profitability can rebuild equity, support reinvestment, and provide greater resilience across future construction cycles.
Negative Factors
Revenue contractionFalling revenue shows that the earnings recovery has not yet been matched by consistent top-line expansion. In a project-based contracting model, uneven awards and completion timing can reduce operating leverage, making it harder to sustain the recent margin improvement over coming periods.

Sam Woo Construction Group Ltd. (3822) vs. iShares MSCI Hong Kong ETF (EWH)

-20%0%20%40%60%80%100%HK:3822+47.97%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 91.98M
Dividend Yield
10.96%
Average Volume (3M)
30.66K
Price to Earnings (P/E)
1.6
Beta (1Y)
-0.15
Revenue Growth
-5.20%
EPS Growth
420.03%
Country
Hong Kong
Employees
316
Sector
Industrials
Sector Strength
63
Industry
Engineering & Construction

Sam Woo Construction Group Ltd. Business Overview & Revenue Model

Company Description

Sam Woo Construction Group Limited functions as an investment holding entity, providing specialized foundation and associated construction services across both Hong Kong and Macau. Its core operations encompass the construction of bored piles and roc...

How the Company Makes Money

The company primarily makes money by earning contract revenue from construction projects it is awarded and executes. Key revenue streams typically include: (1) Main contracting income: revenue recognized from acting as the main contractor for buildin...

Sam Woo Construction Group Ltd. Financial Statement Overview

Summary

Financials reflect a clear turnaround in 2026: profitability rebounded to ~6.8% net margin (vs. ~1.2% in 2025 and negative in 2022–2024), operating margin improved to ~8.2%, leverage declined with debt-to-equity down to ~0.34, and cash generation strengthened with ~161M operating cash flow and ~131M free cash flow. The key risk is durability given revenue fell ~13.2% in 2026 and results have been historically volatile, with cash conversion still somewhat inconsistent (FCF ~81% of net income in 2026).

Income Statement

62Positive

Balance Sheet

68Positive

Cash Flow

70Positive
Financial statement breakdown
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue835.03M835.03M880.85M457.88M416.85M362.51M
Gross Profit112.63M112.63M110.29M31.81M-737.00K-57.52M
EBITDA108.63M109.08M66.30M18.65M13.08M-67.42M
Net Income56.91M56.91M10.94M-28.28M-31.45M-100.70M
Balance Sheet
Total Assets856.38M856.38M921.08M863.59M971.43M804.21M
Cash, Cash Equivalents and Short-Term Investments137.55M137.55M112.37M85.73M197.07M127.93M
Total Debt178.76M178.76M191.59M255.64M213.30M110.48M
Total Liabilities330.90M330.90M441.42M392.99M471.48M272.11M
Stockholders Equity525.48M525.48M479.65M470.60M499.95M532.10M
Cash Flow
Free Cash Flow130.94M130.94M28.19M-48.38M-89.74M-21.59M
Operating Cash Flow161.32M161.32M79.04M-33.32M-58.09M-13.42M
Investing Cash Flow-27.57M-27.57M-49.40M-15.05M-31.64M-8.16M
Financing Cash Flow-108.58M-108.58M-2.99M-62.97M158.88M-18.58M

Sam Woo Construction Group Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price1.09

Price Trends

50DMA1.12Negative
100DMA1.10Negative
200DMA1.11Negative

Market Momentum

MACD-0.01Positive
RSI43.85Neutral
STOCH41.67Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3822, the sentiment is Negative. The current price of 1.09 is below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.12, and below the 200-day MA of 1.11, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 43.85 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:3822.

Sam Woo Construction Group Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (63)

Financial Indicators

HK:3822 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:1690HK:169077OutperformHKD 202.33M6.6022.32%21.43%-39.08%1675.00%
HK:8411HK:841175OutperformHKD 159.52M13.2426.35%5.63%126.12%―
HK:3822HK:382274OutperformHKD 91.98M1.6310.81%10.96%-5.20%420.03%
Sector *63Neutral$10.79B15.437.44%2.01%2.89%-14.66%
HK:1903HK:190348NeutralHKD 992.50M-935.39-0.44%―4.76%-144.68%
HK:6816HK:681643NeutralHKD 161.60M-1.06848.01%―-25.29%7.74%
HK:1447HK:144738UnderperformHKD 224.00M9.526.28%3.57%-5.52%-3.29%

* Industrials Sector Average

Performance Comparison

0%50%100%150%HK:3822HK:1447HK:1903HK:6816HK:8411HK:1690Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:3822 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:3822Sam Woo Construction Group Ltd.1.090.3446.00%
HK:1447SFK Construction Holdings Ltd.0.560.1021.21%
HK:1903JBB Builders International Ltd.1.990.2010.89%
HK:6816Prosper Construction Holdings Limited0.200.001.00%
HK:8411K W Nelson Interior Design and Contracting Group Limited0.160.09138.81%
HK:1690Lap Kei Engineering (Holdings) Limited0.140.08129.51%

Sam Woo Construction Group Ltd. Corporate Events

Sam Woo Construction Wins Up to HK$200 Million Northern Metropolis Contract

Sep 22, 2026

Sam Woo Construction Group Limited has announced that it has secured a new construction contract to carry out foundation works for a project in Hong Kong’s Northern Metropolis, with the contract value capped at HK$200 million subject to measure...

Sam Woo Construction Shareholders Back Board, Auditor and Capital Mandates at AGM

Sep 15, 2026

Sam Woo Construction Group Ltd., a Cayman Islands-incorporated construction company listed on the Hong Kong Stock Exchange, provides building and engineering services to support infrastructure and property projects in Hong Kong and the region. The gr...

Sam Woo Construction Renews Connected Tenancy Agreements for Hong Kong Premises

Jul 22, 2026

Sam Woo Construction Group Ltd. has renewed a series of tenancy agreements for key premises in Hong Kong, including land in Yuen Long and residential and carparking units in Parc Palais, King’s Park, for a one-year term from 1 August 2026 to 31...

Sam Woo Construction Calls AGM to Approve Financials, Board Changes and Share Issuance Mandate

Jul 2, 2026

Sam Woo Construction Group Limited has called its annual general meeting for 15 September 2026 in Hong Kong to present the audited consolidated financial statements for the year ended 31 March 2026 and the related directors’ and auditor’s...

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: Sep 29, 2026