Chi Kan Holdings (SEHK:9913) has reported its FY 2026 first half results with revenue of HK$371.76 million and a basic EPS loss of HK$0.014725, while the trailing twelve months show revenue of HK$1,021.241 million and a net loss of HK$68.615 million. Over the recent reported periods, the company has seen revenue move from HK$867.001 million in 1H 2025 to HK$547.548 million in 2H 2025 and then to HK$371.76 million in 1H 2026. EPS shifted from a gain of HK$0.017538 in 1H 2025 to losses of HK$0.025223 and HK$0.014725 in 2H 2025 and 1H 2026 respectively. With shares trading at HK$2.32, these results put the focus firmly on how Chi Kan Holdings can address pressured margins and a persistently loss making profile.
With the latest numbers on the table, the next step is to see how Chi Kan Holdings’ reported results line up with, or push back against, the dominant narratives investors have been following over the past year.
SEHK:9913 Revenue & Expenses Breakdown as at Jun 2026
Five year earnings slide at 51.4% a year
- Over the past five years, Chi Kan Holdings’ earnings have declined at an average rate of 51.4% a year, and the latest trailing twelve month figures show total revenue of HK$1,021.241 million alongside a net loss of HK$68.615 million.
- Bears argue that this long stretch of weaker profitability points to an ongoing earnings problem, and the trailing data backs that view:
- The move from a profit of HK$17.538 million in 1H 2025 to losses of HK$25.223 million in 2H 2025 and HK$14.725 million in 1H 2026 lines up with the reported multi year decline.
- On a trailing basis, earnings fell to a loss of HK$39.948 million by 1H 2026 and then HK$68.615 million by the latest half year, which is consistent with the idea of worsening results over that five year window.
Higher P/S multiple than construction peers
- Chi Kan Holdings trades on a P/S ratio of 2.3x, compared with about 0.4x for the wider Hong Kong Construction industry and roughly 0.9x for peers, meaning the stock is valued at a higher level relative to its sales than many competitors.
- Critics highlight that this elevated P/S ratio sits alongside recent losses, which they see as a valuation risk:
- The company reported a trailing twelve month net loss of HK$68.615 million despite generating HK$1,021.241 million in revenue, so investors are paying more per dollar of sales without any current net profit.
- With earnings having declined at an average rate of 51.4% a year over five years, bears see limited support in the recent record for a P/S premium over both the 0.4x industry level and the 0.9x peer group.
Revenue holds above HK$1.0b while losses widen
- On a trailing basis, Chi Kan Holdings generated HK$1,021.241 million in revenue but still recorded a net loss of HK$68.615 million, and by 1H 2026 the trailing twelve month loss had already reached HK$39.948 million on HK$919.308 million of revenue.
- What stands out in the more general market opinion is the contrast between this revenue base and the earnings trend:
- Across the last three reported half year periods, revenue moved from HK$867.001 million in 1H 2025 to HK$547.548 million in 2H 2025 and HK$371.76 million in 1H 2026, while the company shifted from a HK$17.538 million profit to two consecutive half year losses.
- The reported 51.4% annual decline in earnings over five years, together with a trailing twelve month EPS loss of HK$0.0687, shows that the problem is not the complete absence of revenue but the inability to translate that HK$1.0b plus of sales into positive net income.
For a broader view of how these trading losses, revenue trends and valuation multiples fit into the evolving story for Chi Kan Holdings, investors can turn to community and analyst discussions that connect the raw numbers with longer term narrative views.
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.
