Revenue and Profitability
- Revenue: HKD 3,570,868,000 for QQ2 2025; YoY growth: 116.89% (peers show more volatility in margin profiles).
- Gross Profit: HKD 295,417,000; Gross Margin: 8.27%; YoY gross profit up 257.71% indicating substantial scale benefits from higher activity, albeit with cost pressures.
- Operating Income: HKD 61,009,000; Operating Margin: 1.71%; EBITDA: HKD 76,213,000; EBITDA Margin: 2.13% (EBITDA cadence indicates limited operating leverage amid volume growth).
- Net Income: HKD 24,278,000; Net Margin: 0.68%; EPS: HKD 0.0486; Weighted Avg Shares: 500,000,000.
Liquidity and Balance Sheet
- Current Ratio: 1.126; Quick Ratio: 1.126; Cash Ratio: 0.0574; DSO: 110.77 days; Inventory Turnover: flat; DPO: 52.36 days; Cash Conversion Cycle: 58.41 days.
- Debt Ratio: 0.190; Debt to Equity: 1.397; Long-Term Debt to Capitalization: 0.238; Total Debt to Capitalization: 0.583.
- Cash Flow: Operating Cash Flow per Share: -0.309; Free Cash Flow per Share: -0.334; Cash per Share: 0.477; Dividend Payout Ratio: 37.1%; Dividend Yield: 4.19%.
Valuation and Efficiency
- Price/Earnings: 2.21; Price/Book: 0.308; Price/Sales: 0.0602; EV/EBITDA: 12.50; Price/Fair Value: 0.308.
- Asset Turnover: 0.695; Fixed Asset Turnover: 40.60; Receivables Turnover: 0.812; Payables Turnover: 1.719; Cash Flow Ratios suggest negative operating cash flow generation relative to market cap.
Context versus Peers
- Compared to select industrials peers, gross margins in QQ2 2025 for CR Construction (~8.27%) are below leaders like 1553.HK (~17.1%) and 1545.HK (~31.6%) in the period, with CR’s net margin (~0.68%) also materially lower than peers with more favorable cost structures. Valuation appears inexpensive (P/E around 2.2) versus some peers, albeit with weaker cash flow generation and higher leverage.
Outlook and Implications
- The revenue rebound is a positive signal, but margin recovery and cash generation remain critical over the near term. The company faces ongoing margin pressure from project mix, fixed cost absorption, and working capital considerations. Investors should monitor project backlog execution, tender discipline, and the cadence of capex funded by operations.