Luen Wong Group Holdings Ltd. (8217) AI Stock Analysis

Luen Wong Group Holdings Ltd.

(HKEX:8217)

Select Model

Rating:49Neutral

Price Target:HKD 0.09▼(-1.12% Downside)

Action:reiterated

Date:10/23/26

The score is primarily constrained by weak and uneven profitability, despite improved revenue, positive operating cash flow, and moderate leverage. The very low P/E provides meaningful support, but the price remains below all major moving averages and the business has not demonstrated consistent earnings quality.

Positive Factors

Improved Balance SheetLower leverage indicates reduced balance-sheet strain and provides greater financial flexibility than in the prior year. The stronger equity position may help the company absorb project variability and support operations, although future benefits depend on converting revenue into durable operating profits.

Negative Factors

Thin Margins and Operating LossesVery thin gross margins leave little room to absorb cost increases, execution issues, or weaker project economics. Persistent operating losses also indicate that reported revenue has not yet translated into a durable operating model, making sustainable profitability a central risk over the coming quarters.

Luen Wong Group Holdings Ltd. (8217) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 26.56M
Dividend Yield: ―
Average Volume (3M): 662.69K
Price to Earnings (P/E): 0.8
Beta (1Y): 0.45
Revenue Growth: 3.74%
EPS Growth: ―
Country: Hong Kong
Employees: 23
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

Luen Wong Group Holdings Ltd. Business Overview & Revenue Model

Company Description

"As an investment holding company, Ju Fu Tang Biotech Holdings Co., Ltd primarily delivers a comprehensive range of civil engineering, decoration, and renovation services across Hong Kong. Its extensive portfolio covers infrastructure development, sp...

Luen Wong Group Holdings Ltd. Financial Statement Overview

Summary

Revenue and operating cash flow improved, while leverage remains manageable. However, very thin gross margins, continued operating losses, and inconsistent historical cash generation indicate weak underlying profitability.

Income Statement

34Negative

Balance Sheet

58Neutral

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	46.29M	37.55M	36.20M	35.14M	104.60M	92.75M
Gross Profit	-705.50K	1.02M	982.00K	1.88M	-2.88M	1.04M
EBITDA	17.93M	-6.12M	-5.10M	-16.63M	-9.13M	-19.14M
Net Income	31.90M	23.32M	-5.90M	-17.43M	-9.96M	-20.15M
Balance Sheet
Total Assets	92.61M	92.61M	80.36M	81.55M	105.51M	144.35M
Cash, Cash Equivalents and Short-Term Investments	60.65M	60.65M	30.17M	26.71M	44.22M	44.70M
Total Debt	12.00M	12.00M	12.00M	12.00M	12.00M	12.15M
Total Liabilities	42.08M	42.08M	53.15M	48.44M	54.96M	83.83M
Stockholders Equity	50.53M	50.53M	27.22M	33.12M	50.55M	60.51M
Cash Flow
Free Cash Flow	1.44M	7.81M	-7.27M	3.72M	32.23M	-19.52M
Operating Cash Flow	1.44M	7.81M	-7.27M	3.72M	32.23M	-19.52M
Investing Cash Flow	3.50M	7.00M	0	0	806.00K	90.00K
Financing Cash Flow	-1.13M	-7.64M	5.38M	-7.87M	-33.09M	12.05M

Luen Wong Group Holdings Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price0.09

Price Trends

50DMA0.10Negative

100DMA0.11Negative

200DMA0.21Negative

Market Momentum

MACD-0.00Positive

RSI40.27Neutral

STOCH9.39Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8217, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.10, below the 50-day MA of 0.10, and below the 200-day MA of 0.21, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 40.27 is Neutral, neither overbought nor oversold. The STOCH value of 9.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8217.

Luen Wong Group Holdings Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HK:8217 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:8411	82Outperform	HKD 159.52M	13.24	26.35%	5.63%	126.12%	―
HK:3822	74Outperform	HKD 91.98M	1.63	10.81%	10.96%	-5.20%	420.03%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:2221	57Neutral	HKD 142.92M	-2.18	-16.86%	―	-20.67%	37.35%
HK:8217	49Neutral	HKD 26.56M	0.76	70.52%	―	3.74%	―
HK:1413	44Neutral	HKD 102.34M	-1.15	-26.71%	―	-51.29%	43.87%
HK:2262	42Neutral	HKD 370.96M	31.25	3.68%	―	4.28%	25.30%

* Industrials Sector Average

Performance Comparison

HK:8217 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8217	Luen Wong Group Holdings Ltd.	0.09	-0.18	-66.79%
HK:1413	Kwong Luen Engineering Holdings Limited	0.21	-0.20	-48.77%
HK:2221	New Concepts Holdings Ltd	0.61	-0.38	-38.38%
HK:2262	Steve Leung Design Group Limited	0.33	-0.78	-70.45%
HK:3822	Sam Woo Construction Group Ltd.	1.09	0.34	46.00%
HK:8411	K W Nelson Interior Design and Contracting Group Limited	0.16	0.09	138.81%

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: Oct 23, 2026

Luen Wong Group Holdings Ltd. AI Stock Analysis