Kwan Yong Holdings Limited (9998) AI Stock Analysis

• Market Cap: HK$408.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 5.4
• Beta (1Y): 0.30
• Revenue Growth: 81.81%
• EPS Growth: 724.56%
• Country: HK
• Employees: 504
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.08
• Shares Outstanding: 800,000,000
• 10 Day Avg. Volume: 1,826,500
• 30 Day Avg. Volume: 1,536,333
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: -1.96% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$0.50 ▼(-1.96% Downside)

Kwan Yong Holdings Limited's strong financial performance and attractive valuation are the primary drivers of its high stock score. The company's robust revenue growth, improved profitability, and strong cash flow generation underpin its financial health. Despite technical indicators suggesting an overbought condition, the stock's undervaluation presents a compelling investment opportunity.

Kwan Yong Holdings Limited Business Overview & Revenue Model

Company Description

Kwan Yong Holdings Limited (9998) is a Singapore-based construction company primarily engaged in providing a wide range of building construction services. The company specializes in the construction of residential, commercial, and industrial projects, offering comprehensive solutions that include design, project management, and construction execution. With a strong presence in the construction sector, Kwan Yong Holdings has built a reputation for delivering quality projects on time and within budget.

How the Company Makes Money

Kwan Yong Holdings Limited makes money through its core business of building construction services. The company's revenue model is based on securing construction contracts from both public and private sector clients. These contracts are typically for residential, commercial, and industrial projects, which the company executes using its expertise in project management and construction. Key revenue streams include project fees, which are paid in installments as construction milestones are met. Additionally, the company may engage in strategic partnerships with developers, architects, and other stakeholders to enhance its service offerings and secure more contracts. Factors contributing to its earnings include its established reputation for quality and reliability, which helps in winning bids for large-scale projects.

Kwan Yong Holdings Limited Financial Statement Overview

Summary

Kwan Yong Holdings Limited exhibits strong financial health with significant improvements in revenue growth, profitability, and cash flow generation. The company has effectively managed its debt levels, maintaining a low leverage profile. While historical volatility in profitability margins poses some risk, the current trajectory suggests a positive outlook for sustained financial performance.

Income Statement

Kwan Yong Holdings Limited has demonstrated strong revenue growth with a 37.04% increase in the latest period, indicating robust demand and successful project execution. The gross profit margin improved significantly, reflecting better cost management. The net profit margin also showed substantial improvement, moving from negative to positive territory, which is a positive sign of profitability. However, historical volatility in margins suggests potential risks in maintaining consistent profitability.

Balance Sheet

The company's balance sheet is relatively strong with a low debt-to-equity ratio, indicating prudent financial management and low leverage risk. The return on equity has improved, showcasing better utilization of shareholder funds. However, the equity ratio suggests a moderate reliance on equity financing, which could limit financial flexibility.

Cash Flow

Kwan Yong Holdings Limited has shown impressive growth in free cash flow, with a 78.72% increase, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient conversion of income into cash. The free cash flow to net income ratio further supports the company's strong cash position, enhancing its ability to reinvest and manage debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	239.92M	239.92M	133.83M	111.44M	77.77M	90.53M
Gross Profit	24.63M	24.63M	7.74M	8.61M	3.76M	-5.18M
EBITDA	15.33M	15.33M	382.00K	3.58M	-283.00K	-3.93M
Net Income	12.77M	12.77M	1.57M	2.33M	-391.00K	-6.21M
Balance Sheet
Total Assets	175.10M	175.10M	98.92M	85.29M	71.84M	86.15M
Cash, Cash Equivalents and Short-Term Investments	94.35M	94.35M	42.03M	23.37M	14.09M	32.54M
Total Debt	2.85M	2.85M	4.45M	3.36M	4.85M	7.12M
Total Liabilities	123.13M	123.13M	59.90M	47.87M	36.83M	50.73M
Stockholders Equity	51.97M	51.97M	39.01M	37.42M	35.02M	35.43M
Cash Flow
Free Cash Flow	55.97M	55.97M	17.64M	8.83M	-15.26M	-13.48M
Operating Cash Flow	57.23M	57.23M	19.62M	9.41M	-14.68M	-10.35M
Investing Cash Flow	1.37M	1.37M	176.00K	1.25M	-1.53M	-2.74M
Financing Cash Flow	-6.08M	-6.08M	-1.52M	-1.62M	-2.29M	-1.97M

Kwan Yong Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9998, the sentiment is Positive. The current price of 0.51 is above the 20-day moving average (MA) of 0.34, above the 50-day MA of 0.28, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 76.46 is Negative, neither overbought nor oversold. The STOCH value of 83.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:9998.

Kwan Yong Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9998	75 Outperform	HK$408.00M	5.43	27.58%	―	81.81%	724.56%
2017	70 Outperform	HK$185.55M	6.33	2.70%	―	-27.58%	-18.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
2663	61 Neutral	HK$169.86M	4.70	13.06%	22.95%	0.25%	-22.09%
1459	45 Neutral	HK$129.61M	37.25	-0.68%	8.16%	-33.92%	-94.74%
1559	41 Neutral	HK$155.14M	―	-54.25%	―	-51.67%	36.70%

Kwan Yong Holdings Limited Corporate Events

Kwan Yong Holdings Secures SGD151 Million Contract for Singapore Junior College Redevelopment

Kwan Yong Holdings Limited announced that its subsidiary, Kwan Yong Construction Pte Ltd, has secured a SGD151 million construction contract from the Ministry of Education of Singapore for the redevelopment of a junior college. The project is set to begin in mid-July 2025. While the contract is a part of the company’s regular business activities, it is not expected to significantly impact the company’s net tangible assets or earnings per share for the financial year ending June 2026. The actual revenue from the contract may vary from the contract sum.