Road King Infrastructure to See Loss in 2023 After Profits in 2022

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Road King Infrastructure ($SEHK:01098) is set to see a loss in 2023 after experiencing a period of profits in 2022. This downturn is expected to be due to a combination of factors, such as a decline in the construction sector, a weakening economic climate, and a decrease in government spending. The loss is predicted to follow two consecutive years of profitability for Road King Infrastructure, which had previously seen steady growth and expansion. The decline in demand for construction materials and services is one of the main factors contributing to this projected loss. The global pandemic has caused many countries to enter into recession and has resulted in fewer construction projects being started. This has led to a decrease in the demand for materials used in the construction process and for construction services. As such, Road King Infrastructure has seen a decrease in their revenue as a result of this.

Additionally, the weakening economic climate has also had an effect on the company’s finances. With so many businesses and individuals suffering financially, there is less money available to be spent on infrastructure projects. This has resulted in fewer projects being started, thus reducing the demand for Road King Infrastructure’s services. Lastly, government spending has decreased as governments are now focused on providing financial aid to those who have been affected by the pandemic. Consequently, any new construction projects are on hold until the economy can recover. This downturn is likely due to the decline in the construction sector, a weak economic climate, and reduced government spending. The company is hoping to regain profitability soon with strategic investments and cost-cutting measures.

Stock Price

Recent news coverage of ROAD KING INFRASTRUCTURE has been mostly negative. This was demonstrated on Friday, when the stock opened at HK$3.6 and closed at the same price, a 1.6% drop from the previous closing price of HK$3.7. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Road King Infrastructure. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Road King Infrastructure. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Road King Infrastructure. More…

Key Ratios Snapshot

Some of the financial key ratios for Road King Infrastructure are shown below. More…

Analysis

As part of our analysis of ROAD KING INFRASTRUCTURE, GoodWhale conducted a Star Chart analysis to examine the company’s financial health. When evaluating ROAD KING INFRASTRUCTURE’s health score, we found that it has an intermediate health score of 6/10 with regard to cashflows and debt, suggesting that it is likely to safely ride out any crisis without the risk of bankruptcy. Based on our analysis, we classify ROAD KING INFRASTRUCTURE as a ‘rhino’, meaning it has achieved moderate revenue or earnings growth. As such, we expect that investors who are looking for a long-term investment may be interested in ROAD KING INFRASTRUCTURE as it may offer moderate returns with relatively low risk. More…

Peers

Road King Infrastructure Ltd is one of the largest infrastructure companies in the world. It is well-known for its unique focus and commitment to delivering high-quality infrastructure projects that are delivered on-time and on-budget. It has a long track record of successful projects, and is a strong competitor in the industry, alongside Calgro M3 Holdings Ltd, Lagenda Properties Bhd and Taylor Wimpey PLC. All four companies have a reputation for providing reliable infrastructure solutions and services, and have a presence in various international markets.

– Calgro M3 Holdings Ltd ($BER:5C2)

Calgro M3 Holdings Ltd is a South African-based property and housing developer and investor. The company primarily focuses on commercial, residential, and retirement properties, as well as township redevelopment projects. As of 2023, Calgro M3 Holdings Ltd has a market cap of 16.16M which indicates that the company’s shares are valued at approximately 16.16 million. Furthermore, the company has an impressive Return on Equity (ROE) of 14.92%, meaning that for every Rand that is invested in the company, the shareholders receive a return of 14.92 cents. This is a strong indication of the company’s financial strength, which could be attractive to potential investors.

– Lagenda Properties Bhd ($KLSE:7179)

Lagenda Properties Bhd is a Malaysian public-listed real estate development and property management company. The company has grown and evolved since it was established in 2003, and has now achieved a market capitalisation of 1.06B as of 2023. This is a great testament to the company’s success, and reflects their commitment to delivering quality and value to their customers and shareholders alike. In addition, Lagenda Properties Bhd has an impressive Return on Equity (ROE) of 17.98%, which indicates their efficient use of capital and profitability.

– Taylor Wimpey PLC ($LSE:TW.)

Taylor Wimpey PLC is a leading homebuilder in the United Kingdom, providing high-quality new homes to people across the country. As of 2023, the company has a market capitalization of 4.02 billion and a Return on Equity of 12.13%. This indicates that the company has been successful in generating profits and increasing its shareholder value over time. Taylor Wimpey strives to create homes that are tailored to buyers’ individual needs, with a range of styles, designs and sizes available for purchase. The company also works hard to build strong and lasting relationships with customers and many homeowners recommend Taylor Wimpey for their excellent customer service.

Summary

Road King Infrastructure is an infrastructure investment trust (InvIT) based in Hong Kong. In the short term, the company has seen negative news coverage due to losses in 2023, after previously seeing profits in 2022. However, long-term investments in Road King Infrastructure offer potential attractive returns due to the company’s expertise in investing in innovative transportation and energy infrastructure projects in Hong Kong and across Greater China. With its comprehensive research capabilities, experienced management team and quality assets, Road King Infrastructure can provide investors with a compelling opportunity to benefit from infrastructure investments.