Chi Kan Holdings (SEHK:9913) Posts Widening Losses, Undermining Justification for Valuation Premium

Chi Kan Holdings (SEHK:9913) just posted its H1 2026 results, with revenue of HK$919.3 million and basic EPS of negative HK$0.039957. Previously, the company reported total revenue of HK$867.0 million in H1 2025 and HK$789.7 million in H2 2024. Basic EPS shifted from HK$0.017538 to HK$0.007296 over those periods. With persistent EPS losses and margins remaining under pressure, profitability remains a challenge for Chi Kan Holdings as investors look for signs of a turnaround.

See our full analysis for Chi Kan Holdings.

Next, let's see how these headline results align with the current narratives in the market. Some numbers may support prevailing views, while others may prompt a reassessment of the story.

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Losses Widen as Net Income Dips to -HK$39.9 Million

• Trailing twelve month net income for Chi Kan Holdings reached -HK$39.9 million, worse than the previous period’s -HK$7.7 million. This highlights a deepening loss despite higher revenues.
• Bears highlight the pace of earnings decline and note that net losses have increased at an average rate of 34.1% per year over the past five years.
  • This trend, coupled with no improvement in net profit margin throughout the last year, supports the bearish view that there is no visible progress toward a turnaround.
  • Bears also point to the absence of positive earnings signals in the last twelve months as a reason for caution on the stock’s valuation and outlook.

Valuation Premium Stands Out Versus Peers

• The company’s Price-To-Sales Ratio sits at 2.7x, which is well above the peer average (1.8x) and the Hong Kong Construction industry average (0.4x). This signals a premium valuation despite ongoing losses.
• Market observers argue this premium is difficult to justify in the absence of profit recovery or margin gains, especially when the broader sector trades at lower multiples.
  • What stands out is that this higher valuation persists even as net income and basic EPS have both turned negative in the current period.
  • Some investors see the disconnect between premium pricing and negative profit trends as a crucial risk that may weigh on future sentiment.

No Revenue Momentum Amid Persistent Profit Pressure

• Revenue did rise to HK$919.3 million in H1 2026 and HK$1.66 billion over the trailing twelve months, but neither revenue nor earnings outpaced the company’s peer group or the broader Hong Kong market.
• The prevailing market view notes that without growth or margin improvement, even revenue gains are not translating into profitability.
  • The lack of supporting rewards or outperformance in any key metric, combined with no progress on earnings recovery, reinforces the idea that the company is in a holding pattern rather than turning a corner.
  • Against this backdrop, narrative attention remains fixed on whether diversification or new business efforts can eventually drive a change in financial trajectory.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Chi Kan Holdings's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Chi Kan Holdings is struggling with sustained losses, negative profit trends, and a premium valuation that is difficult to justify in the current environment.

If you want to focus on companies that are attractively priced and offer stronger value potential, take a closer look at these 921 undervalued stocks based on cash flows and find opportunities where fundamentals better support the price tag.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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