K W Nelson Interior Design and Contracting Group Limited (8411) AI Stock Analysis

K W Nelson Interior Design and Contracting Group Limited

(HKEX:8411)

Select Model

Rating:75Outperform

Price Target:HKD 0.18▲(12.50% Upside)

Action:reiterated

Date:10/27/26

The score is driven mainly by improved financial performance (stronger margins and growth, supported by low leverage), balanced against durability risks from historically volatile earnings and cash flow. Valuation is favorable (moderate P/E and high yield), while technicals show an uptrend but appear overbought, limiting the near-term technical score.

Positive Factors

Improved profitability and growthThe TTM improvement in revenue, gross margin, and net margin indicates stronger recent operating performance and better earnings conversion. If maintained, this profitability base can support reinvestment and improve resilience, although its durability depends on overcoming the company’s uneven historical results.

Negative Factors

Historically volatile earningsRecurring losses across several prior years show that the recent earnings improvement has not yet established a dependable long-term pattern. Such volatility is consistent with uneven contracting activity and makes future margins and profit levels less predictable over the next several reporting periods.

K W Nelson Interior Design and Contracting Group Limited (8411) vs. iShares MSCI Hong Kong ETF (EWH)

Market Cap: HKD 152.06M
Dividend Yield: 5.63%
Average Volume (3M): 355.94K
Price to Earnings (P/E): 13.2
Beta (1Y): 0.50
Revenue Growth: 126.12%
EPS Growth: ―
Country: Hong Kong
Employees: 14
Sector: Industrials
Sector Strength: 63
Industry: Engineering & Construction

K W Nelson Interior Design and Contracting Group Limited Business Overview & Revenue Model

Company Description

Operating as an investment holding company, K W Nelson Interior Design and Contracting Group Limited offers specialized interior design and contracting solutions, primarily targeting commercial spaces across the People's Republic of China. Their comp...

How the Company Makes Money

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K W Nelson Interior Design and Contracting Group Limited Financial Statement Overview

Summary

Strong TTM turnaround with meaningfully higher margins (net margin ~13.7%, gross margin ~40%) and solid revenue growth (~20%), backed by a very low-debt balance sheet. Offsetting this, results and cash flows have been historically volatile (losses in 2021–2024; free cash flow swings and recent FCF decline), which lowers confidence in sustainability.

Income Statement

74Positive

Balance Sheet

88Very Positive

Cash Flow

66Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	67.25M	48.80M	21.54M	28.89M	42.52M	44.09M
Gross Profit	34.33M	18.19M	6.78M	8.44M	11.95M	9.13M
EBITDA	10.57M	3.54M	-1.72M	-4.42M	-1.34M	-3.21M
Net Income	11.72M	3.10M	-3.34M	-5.69M	-3.40M	-5.17M
Balance Sheet
Total Assets	46.39M	54.25M	66.11M	69.63M	80.36M	150.34M
Cash, Cash Equivalents and Short-Term Investments	34.77M	42.12M	50.73M	59.03M	63.84M	119.23M
Total Debt	1.18M	1.06M	934.00K	277.00K	749.00K	653.00K
Total Liabilities	3.46M	8.20M	4.32M	4.33M	8.14M	20.82M
Stockholders Equity	42.90M	46.06M	61.80M	65.30M	72.22M	129.51M
Cash Flow
Free Cash Flow	5.76M	7.69M	-10.68M	-4.81M	-287.00K	13.22M
Operating Cash Flow	5.78M	7.92M	-10.55M	-4.81M	98.00K	17.34M
Investing Cash Flow	-11.37M	19.51M	1.11M	406.00K	-704.00K	-42.24M
Financing Cash Flow	-37.98M	-19.49M	-562.00K	-1.63M	-54.71M	-8.18M

K W Nelson Interior Design and Contracting Group Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price0.16

Price Trends

50DMA0.12Positive

100DMA0.11Positive

200DMA0.11Positive

Market Momentum

MACD0.01Negative

RSI76.66Negative

STOCH80.95Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:8411, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.12, and above the 200-day MA of 0.11, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 76.66 is Negative, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:8411.

K W Nelson Interior Design and Contracting Group Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

HK:8411 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HK:0240	84Outperform	HKD 1.73B	3.76	15.72%	12.19%	-12.79%	-0.62%
HK:8411	75Outperform	HKD 159.52M	13.24	26.35%	5.63%	126.12%	―
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HK:2262	48Neutral	HKD 370.96M	31.25	3.68%	―	4.28%	25.30%
HK:1903	48Neutral	HKD 992.50M	-935.39	-0.44%	―	4.76%	-144.68%
HK:0896	47Neutral	HKD 316.56M	-0.35	-31.01%	―	-22.33%	-203.23%
HK:0406	34Underperform	HKD 216.84M	-1.07	-15.28%	―	13.50%	-106.11%

* Industrials Sector Average

Performance Comparison

HK:8411 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HK:8411	K W Nelson Interior Design and Contracting Group Limited	0.16	0.09	138.81%
HK:0240	Build King Holdings	1.39	-0.01	-0.43%
HK:0896	Hanison Construction Holdings	0.29	0.05	19.43%
HK:0406	Yau Lee Holdings Limited	0.49	-0.20	-29.29%
HK:1903	JBB Builders International Ltd.	1.99	0.20	10.89%
HK:2262	Steve Leung Design Group Limited	0.33	-0.78	-70.45%

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 27, 2026

K W Nelson Interior Design and Contracting Group Limited AI Stock Analysis