Executive Summary
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
QoQ: -5.56% | YoY:-67.53%
Key Insights
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. ...
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
operatingProfitMargin
-1.56%
priceEarningsRatio
-24.42
Management Commentary
Note: The earnings transcript data is not provided in the supplied materials. Consequently, there are no management quotes or thematic highlights available from an earnings call to synthesize. If a transcript becomes available, this section can be expanded to group insights by strategy, operations, and market conditions with context and implications for investors.
Forward Guidance
No formal forward guidance was disclosed in the provided data. Given QQ3 2024 results, management commentary (if subsequently released) would likely emphasize stabilizing revenue, selectively expanding BIM and digital transformation services, and monetizing the cloud-based BIM platform to improve margins. Investors should monitor: (a) progression of backlog and project activity in PRC/HK/Macau and internationally, (b) monetization traction of cloud-based and digital transformation offerings, (c) working capital efficiency given the elevated accounts receivable days, and (d) ongoing capex discipline and the sustainment of positive free cash flow.