CNC Holdings Limited (8356) AI Stock Analysis

• Market Cap: HK$34.33M
• Dividend Yield: N/A
• Average Volume (3M): 2.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: -16.98%
• EPS Growth: 62.42%
• Country: HK
• Employees: 224
• Sector: Industrials
• Sector Strength: 91
• Industry: Engineering & Construction
• EPS (TTM): -0.10
• Shares Outstanding: 57,220,165
• 10 Day Avg. Volume: 1,700
• 30 Day Avg. Volume: 2,236
• PEG Ratio: -0.10
• Price to Book (P/B): -2.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.22
• 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

CNC Holdings Limited faces considerable financial difficulties with persistent losses and negative equity, significantly impacting its overall stock score. While there are some improvements in cash flow, technical analysis indicates limited momentum, and the valuation is challenging due to negative earnings. These factors combine to give a cautious outlook for the stock.

CNC Holdings Limited Business Overview & Revenue Model

Company Description

CNC Holdings Limited (8356) is a Hong Kong-based investment holding company primarily engaged in the provision of waterworks engineering services. The company operates through its subsidiary, which focuses on the construction and maintenance of waterworks facilities, including pipe laying, water pipe connection, and other related services. CNC Holdings Limited serves clients in both the public and private sectors, contributing to infrastructure development and maintenance.

How the Company Makes Money

CNC Holdings Limited generates revenue primarily through its waterworks engineering services. The company's key revenue streams include contracts for the construction, maintenance, and repair of water supply infrastructure. These contracts are typically awarded by government bodies and private sector clients, ensuring a steady flow of income. The company also benefits from its expertise and reputation in the industry, which helps secure new projects and maintain ongoing partnerships. Additionally, strategic collaborations and adherence to regulatory standards play a significant role in sustaining its revenue generation.

CNC Holdings Limited Financial Statement Overview

Summary

CNC Holdings Limited is facing significant financial challenges, with recurring losses, negative equity, and high leverage. The income statement shows declining revenue and persistent negative net income. The balance sheet indicates insolvency due to negative stockholders' equity and high debt. Cash flow management shows some improvement with positive operating cash flow, but free cash flow growth is negative.

Income Statement

CNC Holdings Limited's income statement reveals considerable challenges, with a negative net income persisting over the years and declining revenue in the latest period. Despite a slight improvement in gross profit margin and EBITDA margin, the company remains unprofitable, as evidenced by the negative net profit margin. The revenue growth rate has been negative, indicating declining business operations.

Balance Sheet

The balance sheet of CNC Holdings Limited shows significant financial distress, characterized by negative stockholders' equity, indicating insolvency. The company has a high debt-to-equity ratio due to its negative equity, and the equity ratio is also negative. These factors highlight financial instability and potential risk in leveraging.

Cash Flow

CNC Holdings Limited's cash flow statement shows some positive aspects, such as improved free cash flow and a positive operating cash flow to net income ratio in the latest period. However, the free cash flow growth rate is negative compared to previous periods, indicating challenges in sustaining cash generation from operations.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
536.42M	468.96M	496.46M	408.18M	239.23M	237.32M
	Gross Profit
14.81M	18.06M	3.42M	-9.36M	-28.82M	-17.54M
	EBIT
4.67M	2.32M	277.00K	-21.49M	-70.04M	-76.68M
	EBITDA
-1.94M	14.37M	11.19M	-10.17M	-31.00M	-32.38M
	Net Income Common Stockholders
-5.54M	-9.32M	-9.44M	-41.73M	-72.95M	-100.83M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.59M	48.22M	51.62M	42.56M	71.54M	93.03M
	Total Assets
218.96M	218.96M	245.54M	213.48M	174.91M	248.45M
	Total Debt
301.22M	302.96M	305.92M	305.85M	291.75M	297.80M
	Net Debt
253.00M	254.74M	254.31M	263.29M	225.01M	206.61M
	Total Liabilities
622.39M	622.39M	640.35M	598.79M	518.10M	520.42M
	Stockholders Equity
-405.11M	-405.11M	-396.28M	-386.80M	-345.10M	-271.97M
Cash Flow		Free Cash Flow
-5.50M	947.00K	14.39M	-29.37M	-19.44M	18.61M
	Operating Cash Flow
3.33M	4.59M	20.98M	-22.85M	-7.90M	26.09M
	Investing Cash Flow
-7.83M	-2.77M	-4.83M	2.87M	-11.00M	-4.54M
	Financing Cash Flow
15.66M	-5.72M	-7.05M	-4.28M	-6.17M	-9.83M

CNC Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8356, the sentiment is Negative. The current price of 0.6 is above the 20-day moving average (MA) of 0.59, below the 50-day MA of 0.65, and below the 200-day MA of 0.68, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 34.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:8356.

CNC Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$4.43B	12.01	5.16%	249.23%	4.03%	-11.73%
8210	59 Neutral	HK$36.41M	51.11	0.88%	―	-20.20%	-81.63%
8098	52 Neutral	HK$103.40M	4.43	11.89%	―	36.47%	―
8060	46 Neutral	HK$29.70M	―	-1.91%	―	0.60%	86.53%
8356	45 Neutral	HK$34.33M	―		―	-16.98%	62.42%
8203	40 Underperform	HK$125.36M	14.10		―	272.07%	―