C Cheng Holdings Limited delivered QQ3 2024 with a marked revenue decline and negative bottom-line profitability, underscored by the macro-cyclical nature of the engineering and construction sector. Revenue for QQ3 2024 stood at HKD 97.46 million, down 67.5% year-over-year and 5.6% quarter-over-quarter, while gross profit reached HKD 16.19 million and gross margin held at approximately 16.6%. Despite pressure on operating and net income, the company generated positive operating cash flow of HKD 5.20 million and free cash flow of HKD 4.29 million, contributing to a resilient liquidity posture in a challenging cycle.
Key Performance Indicators
Revenue
Decreasing
97.46M
QoQ: -5.56% | YoY: -67.53%
Gross Profit
Decreasing
16.19M
16.61% margin
QoQ: 8.46% | YoY: -66.08%
Operating Income
Increasing
-1.52M
QoQ: 70.41% | YoY: 86.26%
Net Income
Increasing
-1.33M
QoQ: 78.22% | YoY: 90.60%
EPS
Increasing
0.00
QoQ: 78.30% | YoY: 90.61%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: HKD 97,459,000 (YoY -67.53%, QoQ -5.56%).
Gross Profit: HKD 16,192,000; Gross Margin: 16.6%.
EBITDA: HKD 4,570,500; EBITDA Margin: 4.69%; Operating Income: -HKD 1,523,000; Operating Margin: -1.56%.
Net Income: -HKD 1,328,000; Net Margin: -1.36%; EPS: -0.0046.
Cash Flow: Operating Cash Flow HKD 5,202,000; Capex HKD -912,000; Free Cash Flow HKD 4,290,000.
Balance Sheet (as of 2024-09-30): Total Assets HKD 619.9 million; Total Liabilities HKD 220.8 million; Total Equity HKD 396.4 million. Cash & equivalents HKD 74.6 million; Short-term investments HKD 7.98 million; Long-term investments HKD 104.42 million; Net Receivables HKD 350.665 million; Total Current Assets HKD 468.435 million; Total Current Liabilities HKD 214.987 million; Net Debt HKD 22.92 million.
Liquidity & Ratios: Current Ratio 2.18; Quick Ratio 2.18; Cash Ratio 0.347. DSO 323.83 days; Debt to Equity 0.246; Debt to Capitalization 0.197. P/B 0.327; P/S 1.331; P/E negative (~-24.42x).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
97.46M
-67.53%
-5.56%
Gross Profit
16.19M
-66.08%
8.46%
Operating Income
-1.52M
86.26%
70.41%
Net Income
-1.33M
90.60%
78.22%
EPS
0.00
90.61%
78.30%
Key Financial Ratios
Gross Profit Margin
Weak
16.60%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.02%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.00%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
2.18
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.25
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-24.42x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
0.33x
Trading below book value, potential value opportunity or distressed
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