Hiap Hoe Ltd. (5JK) AI Stock Analysis

• Market Cap: S$265.87M
• Dividend Yield: 0.44%
• Average Volume (3M): 12.69K
• Price to Earnings (P/E): 24.2
• Beta (1Y): -0.02
• Revenue Growth: 21.91%
• EPS Growth: 82.03%
• Country: SG
• Employees: 340
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Real Estate - Services
• EPS (TTM): 0.01
• Shares Outstanding: 474,557,400
• 10 Day Avg. Volume: 21,170
• 30 Day Avg. Volume: 12,686
• PEG Ratio: 2.23
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 2.44
• P/FCF Ratio: 92.89
• 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: S$0.50
• Price Target Upside: -10.71% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 57 Neutral
• Price Target: S$0.50 ▼(-10.71% Downside)

Hiap Hoe Ltd. shows strong operational efficiency and a stable financial position, but struggles with consistent profitability and equity returns. The technical indicators suggest a neutral to slightly bearish outlook, while the high dividend yield is a positive aspect, despite the high P/E ratio. Overall, the stock presents a mixed investment case with strengths in operational efficiency and dividend yield, but challenges in valuation and market momentum.

Hiap Hoe Ltd. Business Overview & Revenue Model

Company Description

Hiap Hoe Limited, an investment holding company, engages in the development of portfolio of hospitality, retail, commercial, and residential assets in Australia, Singapore, and the United Kingdom. It operates through Development Properties, Rental, Leisure, and Hotel Operations segments. The Development Properties segment acquires land/property and develops them into residential, industrial, and commercial properties for sale. The Rental segment engages in the business of renting space under the investment properties, as well as plant and equipment. The Leisure segment provides leisure and recreational facilities, including bowling, billiard, and amusement centers under the SuperBowl brand. The Hotel Operations segment operates hotels under the brand names of Ramada Singapore, Days Hotel Singapore, Holiday Inn Express Trafford City, Four Points by Sheraton Melbourne, and Aloft Perth. The company trades in a portfolio of quoted and unquoted investments. It is also involved in the provision of civil engineering, general road construction, and sub-contractor works; and development of luxury and mid-tier residential, and hotel-cum-commercial properties. Hiap Hoe Limited was incorporated in 1994 and is headquartered in Singapore. Hiap Hoe Limited is a subsidiary of Hiap Hoe Holdings Pte Ltd.

How the Company Makes Money

Hiap Hoe Ltd. generates revenue through a diversified model focusing on property development, property investment, and hospitality management. The company earns income from the sale of residential and commercial properties that it develops, which is a primary revenue stream. Additionally, Hiap Hoe Ltd. owns and manages a portfolio of investment properties that provide rental income and potential capital appreciation. The company is also involved in the hospitality sector, operating hotels that contribute to its revenue through room bookings, events, and associated services. Strategic partnerships with other developers and investment firms enhance its project delivery and financial outcomes, while market demand, property valuation trends, and occupancy rates are significant factors influencing its earnings.

Hiap Hoe Ltd. Financial Statement Overview

Summary

Hiap Hoe Ltd. demonstrates strong operational efficiency with robust gross and EBIT margins. The balance sheet reflects a stable financial position with moderate leverage. However, the company faces challenges in consistently translating operational success into net profitability and positive equity returns. Cash flow management is generally sound, but variability in free cash flow growth warrants careful attention.

Income Statement

The company has shown a strong gross profit margin with consistent gross profit growth over the years, indicating efficient core operations. The revenue growth rate has been positive, and EBIT margin improvements are notable, showcasing enhanced operational efficiency. However, net profit margins remain volatile, with occasional losses, suggesting challenges in cost management or non-operational expenses impacting net income.

Balance Sheet

Hiap Hoe Ltd. maintains a moderate debt-to-equity ratio, reflecting a balanced approach to leveraging. The equity ratio is stable, indicating a solid asset base funded by equity, which is reassuring for long-term stability. However, the return on equity has been inconsistent, with some periods of negative returns, highlighting concerns over profitability and efficient use of equity.

Cash Flow

The company's cash flow from operations is healthy, with consistent positive free cash flow, suggesting good cash management. The operating cash flow to net income ratio is favorable, reflecting effective conversion of earnings to cash. However, free cash flow growth has been uneven, and capital expenditures sometimes exceed operating cash flow, indicating potential liquidity constraints.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.89M	111.89M	119.40M	93.69M	79.55M
Gross Profit	40.28M	81.61M	116.10M	89.88M	75.26M
EBITDA	87.91M	77.08M	31.09M	72.38M	10.07M
Net Income	6.57M	5.56M	-22.00M	21.20M	-36.71M
Balance Sheet
Total Assets	1.59B	1.59B	1.57B	1.63B	1.59B
Cash, Cash Equivalents and Short-Term Investments	468.16M	354.08M	347.17M	345.14M	302.06M
Total Debt	768.30M	759.27M	743.99M	772.17M	754.21M
Total Liabilities	871.94M	866.38M	848.31M	872.80M	852.36M
Stockholders Equity	715.12M	719.74M	718.45M	752.51M	737.45M
Cash Flow
Free Cash Flow	2.94M	5.59M	43.17M	28.32M	18.04M
Operating Cash Flow	37.70M	30.30M	45.52M	29.66M	19.55M
Investing Cash Flow	24.61M	-11.31M	17.36M	-29.32M	8.77M
Financing Cash Flow	-50.56M	-25.55M	-54.85M	3.93M	-29.53M

Hiap Hoe Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.56
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5JK, the sentiment is Neutral. The current price of 0.56 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.57, and above the 200-day MA of 0.54, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.11 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:5JK.

Hiap Hoe Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
B61	76 Outperform	S$1.08B	9.49	7.43%	4.77%	-2.18%	61.33%
O10	73 Outperform	€643.13M	10.62	4.51%	3.13%	-2.21%	-20.80%
LJ3	69 Neutral	€824.12M	―	-4.81%	1.67%	-1.32%	-211.26%
F1E	68 Neutral	S$454.37M	189.29	-2.34%	2.46%	-39.12%	-326.51%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
5JK	57 Neutral	S$265.87M	24.25	1.53%	0.44%	21.91%	82.03%
5IC	53 Neutral	S$182.45M	15.64	3.68%	2.20%	118.91%	50.78%

Hiap Hoe Ltd. Corporate Events

Hiap Hoe Ltd. Cancels Treasury Shares to Boost Shareholder Value

Hiap Hoe Ltd. has announced the cancellation of 3,999,850 treasury shares, which were previously held as excess and unutilized. This move is aimed at enhancing shareholder value by reducing the number of issued ordinary shares, effectively increasing the value of remaining shares. The cancellation represents 0.843% of the total issued ordinary shares before the cancellation and brings the treasury shares to zero, indicating a strategic decision to optimize capital structure.

Hiap Hoe Limited Conducts Annual General Meeting

Hiap Hoe Limited held its Annual General Meeting on April 30, 2025, at Aloft Singapore Novena, with key company directors and shareholders in attendance. The meeting included a presentation by CEO Mr. Marc Teo on the company’s business and financial performance, followed by a Q&A session where shareholders raised questions about the company’s operations.