Kwong Man Kee Group Ltd (8023) AI Stock Analysis

• Market Cap: HK$197.16M
• Dividend Yield: 1.52%
• Average Volume (3M): 44.20K
• Price to Earnings (P/E): 24.1
• Beta (1Y): -0.29
• Revenue Growth: 13.13%
• EPS Growth: -40.69%
• Country: HK
• Employees: 56
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 597,444,000
• 10 Day Avg. Volume: 3,000
• 30 Day Avg. Volume: 44,200
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: 51.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 56 Neutral
• Price Target: HK$0.50 ▲(51.52% Upside)

The overall stock score reflects mixed financial performance with positive revenue growth but declining profitability and concerning cash flow issues. Technical analysis shows an overbought condition, suggesting potential for a price correction. The valuation indicates the stock may be overvalued, with a high P/E ratio and modest dividend yield.

Kwong Man Kee Group Ltd Business Overview & Revenue Model

Company Description

Kwong Man Kee Group Limited, an investment holding company, provides engineering services to the car park flooring industry in Hong Kong. The company offers flooring services, including application of proprietary floor coating products for providing a colorful, slip-resistance, and hard wearing surface that is resistant against water and petrochemicals; and ancillary services comprising specialized texture painting and waterproofing works. It also offers screeding and anti-skid surfacing services, as well as engages in trading of materials; and sells car park flooring materials. The company was founded in 2002 and is headquartered in Kowloon, Hong Kong. Kwong Man Kee Group Limited is a subsidiary of Sage City Investments Limited.

How the Company Makes Money

Kwong Man Kee Group Ltd generates revenue through several key streams. The primary source is the sale of its food products, which include frozen seafood, prepared meals, and other processed foods, to both retail outlets and food service companies. The company benefits from economies of scale in production, allowing for competitive pricing. Additionally, it may engage in partnerships with local distributors and retailers to expand its market reach. Seasonal demand for certain food items and trends in consumer preferences towards convenient meal options can also influence revenues. The company may further explore international markets, contributing to diversified income streams.

Kwong Man Kee Group Ltd Financial Statement Overview

Summary

Kwong Man Kee Group Ltd shows positive revenue growth but declining profitability margins, indicating cost management challenges. The balance sheet is strong with low leverage, but cash flow issues are concerning, suggesting a need for improved cash conversion and operational efficiency.

Income Statement

Kwong Man Kee Group Ltd has shown a positive revenue growth rate of 10.53% in the latest year, indicating a recovery from previous declines. However, the gross profit margin has decreased from 36.13% to 30.98%, and the net profit margin has also declined from 9.39% to 4.91%. This suggests pressure on profitability despite revenue growth. The EBIT and EBITDA margins have similarly decreased, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The company's balance sheet is relatively strong, with a low debt-to-equity ratio of 0.0715, indicating conservative leverage. Return on equity has decreased to 6.43%, reflecting lower profitability. The equity ratio remains healthy, suggesting a stable financial position with adequate equity backing the assets.

Cash Flow

Cash flow performance is concerning, with a significant decline in free cash flow growth of -102.38%. The operating cash flow to net income ratio is low at 0.024, indicating potential issues in converting income into cash. The free cash flow to net income ratio is moderate at 0.251, but overall cash generation appears weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	151.03M	166.94M	147.56M	170.61M	110.42M	118.87M
Gross Profit	52.10M	51.72M	53.31M	53.85M	35.74M	41.78M
EBITDA	19.55M	16.40M	22.59M	28.29M	12.25M	21.97M
Net Income	11.05M	8.19M	13.86M	19.12M	7.46M	15.57M
Balance Sheet
Total Assets	197.31M	179.90M	181.26M	174.30M	149.80M	129.92M
Cash, Cash Equivalents and Short-Term Investments	40.95M	33.45M	50.55M	38.47M	23.87M	34.55M
Total Debt	16.50M	9.11M	15.53M	13.96M	15.94M	9.98M
Total Liabilities	64.35M	50.09M	54.81M	55.62M	47.99M	29.52M
Stockholders Equity	131.05M	127.35M	125.08M	118.25M	102.10M	100.64M
Cash Flow
Free Cash Flow	-12.40M	294.87K	18.71M	23.86M	-4.15M	16.65M
Operating Cash Flow	-11.58M	1.18M	20.00M	24.20M	148.11K	17.57M
Investing Cash Flow	-726.89K	-349.60K	-768.00K	-6.48M	-9.71M	-906.53K
Financing Cash Flow	-2.11M	-13.68M	-7.45M	-7.22M	-1.09M	-1.70M

Kwong Man Kee Group Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8023, the sentiment is Neutral. The current price of 0.33 is above the 20-day moving average (MA) of 0.31, above the 50-day MA of 0.29, and above the 200-day MA of 0.30, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 84.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:8023.

Kwong Man Kee Group Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8601	69 Neutral	200.00M	6.79	20.61%	5.00%	4.57%	8.55%
0368	66 Neutral	240.00M	12.71	8.58%	5.57%	6.27%	―
2663	65 Neutral	175.43M	4.85	13.83%	22.22%	0.25%	-22.09%
1582	61 Neutral	180.00M	4.27	8.19%	9.17%	27.42%	-32.34%
8023	56 Neutral	HK$197.16M	24.09	6.49%	1.52%	13.13%	-40.69%
1865	43 Neutral	195.24M	-0.63	-17.02%	―	-0.02%	13.79%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%